According to a formal Announcement released by the Finance Ministry on Wednesday, the Pharmaceutical Companies and the Government have agreed on new Paracetamol product Prices and the start of production.
According to the Ministry of Finance, the event happened after Federal Minister for Finance and Revenue Ishaq Dar met with the leaders of significant pharmaceutical companies businesses to discuss the retail pricing of paracetamol products.
In the announcement, it was stated that the “pharma industry agreed upon the reduced pricing of paracetamol 500mg tablet at Rs2.35, paracetamol extra 500 mg at Rs2.75 and syrup at Rs117.6, which is roughly half the price rise proposed them.”
Additionally, the announcement indicated that paracetamol product production has begun.
The change occurs just days after Panadol Tablets (or generic paracetamol), Panadol Extra Tablets, and Children’s Panadol Liquid Range production was put on hold due to a force majeure declaration GlaxoSmithKline Consumer Healthcare (GSKCH).
The company stated that it wrote “many letters to various government stakeholders on the serious issue of extraordinary and rapid increase in paracetamol (raw material) costs in Pakistan” in a filing to the Pakistan Stock Exchange (PSX) on Friday.
However, media reports claim that after a protracted delay, the latter denied the same without providing any explanation to the corporation.
Pharmaceutical Companies are Unable to Raise Prices
The Drug Regulatory Authority of Pakistan (DRAP) controls drug pricing in Pakistan, therefore pharmaceutical Companies are unable to raise prices without the authority’s approval.
The agreement was negotiated between the government and GSKCH, not the “entire pharma industry,” according to Dr. Kaiser Waheed, a former chairman of the Pakistan Pharmaceutical Manufacturers’ Association (PPMA), the organization that represents pharmaceutical businesses.
Waheed claimed that negotiations between the government and the pharmaceutical business were ongoing. The government, he continued, “stated that it cannot afford to pay any subsidies.
The PPMA issued a warning last month that if the DRAP does not hold negotiations by Monday, October 3, it will raise the cost of a few medications.
