Medicine prices set to skyrocket as DRAP grants pharma companies power to Price 50% of drugs

KARACHI: Medicine prices, already soaring in Pakistan, are likely to increase further after the Drug Regulatory Authority of Pakistan (DRAP) authorized pharmaceutical companies to determine the prices of 50 percent of medicines, ARY News reported.

The Chief Executive Officer (CEO) of DRAP, Dr. Ubaid Ullah, confirmed that following the deregulation, the authority to set the prices of half of all medicines now rests with the pharmaceutical companies.

This development is deeply concerning for the public, as the cost of drugs for critical ailments—including heart conditions, chest infections, mental illnesses, diabetes, and various cancers—are already prohibitively high, leaving patients financially vulnerable.

Concerns Over Unnecessary Prescription and Nexus

DRAP officials also acknowledged that doctors unnecessarily prescribe about 70 percent of medicines, which burdens patients with an estimated Rs 50 billion in extra costs.

This situation points to a nexus operating between doctors and pharmaceutical companies/firms to maximize profits. Reports have shown that pharmaceutical companies sponsor trips abroad for doctors to encourage them to prescribe their specific, often more expensive, brands, ensuring the companies receive a larger share of profits.

Impact and Suggested Remedy

With pharmaceutical companies now having the power to set prices for half of the drugs, the financial burden on the public, particularly the poor, is expected to worsen, making essential treatment unaffordable for many.

To mitigate this crisis, there is a clear need for government intervention. A suggested mechanism is to mandate doctors to prescribe medicines by their generic formula name instead of a specific brand name.

This would allow patients to purchase the most affordable version of the required medication, providing much-needed relief to the masses.