SLCPI welcomes move by Ministry of Health in increasing price of drugs by 5%
The Sri Lanka Chamber of the Pharmaceutical Industry (SLCPI) in a statement to media said they were grateful for the effective action taken by the Ministry of Health in increasing the price of drugs by 5%. Implemented in October 2016 on 48 molecules, the price ceiling impacted the pharmaceutical Industry, particularly as importers had to reimburse retailers and distributors for the stocks held at the time of the pricing ceiling and in support of effective implementation.
Since March 2014, when all pharmaceuticals products were gazetted as essential items, prices of most drugs have remain unchanged despite the devaluation of Lankan Rupee from 130 to 155 for 1 USD. Most pharma companies did not adjust prices expecting a viable long-term pricing mechanism as envisaged in the National Medicines Regulatory Authority (NMRA) Act, thereby sustaining losses year on year.
“The government’s increase of prices of 48 drugs was well considered and appropriate, given global market conditions. Globally, the disease burden on countries and economies has been shifting to non-communicable diseases (NCDs) like diabetes, cardio-vascular diseases, cancer and lung-related diseases. Addressing the NCD burden will call for new and innovative medicines, including biologics, and new forms of treatment and therapies” stated Shyam Sathasivam, President of SLCPI.
“Almost 90% of pharmaceutical products are imported and the exchange rate impacts significantly on the pricing. The exchange devaluation of the LKR has greatly increased the cost of pharmaceutical products causing a risk to its continuity,” he stated.
SLCPI asserts that access to healthcare includes access to medicines. “It is important that healthcare be affordable; much of healthcare is already very affordable in Sri Lanka. Currently, around 80% of inpatient care and 50% of outpatient care is provided by the public system, while the private sector accounts for the remaining. Capping prices on much-needed medicines for cancer and cardio-vascular diseases, for example, in the name of making them affordable could result in their not being available for the people that need them. Many of those medicines have to be imported, since we do not make them. In raising prices even marginally, the government has balanced affordability with availability so that the patients receive the benefits of both”, stated SLCPI
About the SLCPI
The SLCPI founded in 1961, represents over 70 members who account for over 90% of the Private Pharmaceutical Industry across the value chain from Manufacturers, Importers, Distributors and Retailers, providing the Sri Lankan patients with 800 molecules from 364 manufacturers from across the world. The Industry value chain has over 60,000 direct employees and over 240,000 indirect employees. Major corporates in the local industry such as Hemas Pharmaceuticals, Sunshine Healthcare, CIC Lifesciences, Baurs Healthcare and George Steurts Healthcare are among the members. SLCPI is an affiliated chamber of the Ceylon Chamber of Commerce.
