THE price of essential medicines, especially medicines for high blood pressure, heart diseases, diabetes, cough, antibiotics, painkillers and vitamins, has soared by as much as 110%, with an average increase of 29 per cent. This unchecked rise in medicine prices has become a grave concern for the people already grappling with the high cost of living. The costs of living are no longer mere figures. They a matter of life and death. A middle-income household with asthma and diabetic patients, for example, may now spend a half of its monthly income on medication, forcing a cutback on food and other essential goods. This pushes countless households in a dire situation nationwide.
In April 2024, a report showed that pharmaceutical companies had increased prices of at least 50 types of medicine by 20 to 140 per cent in two months. The current round marks the second increase in medicine prices this year alone. Despite an April order of the High Court for effective measures to prevent such increase, the price surge continues to financially burden people overwhelmingly. The court issued the order after pharmaceutical companies had increased prices, exploiting the lack of regulatory oversight. Although the Health Services Division and the Directorate General of Drug Administration are mean to control drug prices keeping to the Drug and Cosmetics Act 2023, unlawful increase in drug prices has continued. The law, however, allows manufacturers to set prices for more than 97 per cent of the roughly 20,000 branded medicines produced locally, leaving the authorities responsible for regulating only 460 drugs of 117 generic types.
This regulatory loopholes, combined with corporate greed and insufficient enforcement, has led to an unchecked increase in medicine prices, leaving the public to bear the brunt. The silent crisis threatens public health and leaves families to choose between health care and economic survival. The working-class people are grappling with relentless financial strain because of soaring prices of essential medicines. Buying medicines directly from companies allows buyers to secure them at prices significantly lower than the maximum retail prices, the same medicines are sold for varying prices and at varying profit margins across pharmacies, depending on the location and the seller. This inconsistency burdens everyday buyers.
A recent television report has highlighted a significant increase in prices of more than a hundred life-saving drugs, with several prominent pharmaceutical companies having been at play. The companies have been identified as key players that are responsible for rising costs of essential drugs. In three months, several essential medicines have registered price increase. The price of a medicine used for bladder treatment, for an example, increased by Tk 150, from Tk 450 to Tk 600. A painkiller registered a price increase by Tk 100, from Tk 250 to Tk 350. The price surge reflects a substantial overall increase. On an average, prices of several key drugs used in the treatment of heart diseases, diabetes and gastritis have increased by 20鈥�30 per cent.
The price surge, particularly of pain relievers, drugs for heart diseases, diabetes and gastritis have significantly impacted the financial well-being of patients. A media report shows that the increase in medicine prices have pushed up the average expenditure on medical treatment by 50 per cent in three months. The Directorate General of Drug Administration maintains a list of essential drugs, with prices fixed for 117 of the medicines. For other drugs, manufacturers propose increase which the drug administration authorities approve. Pharmaceutical companies, however, often increase prices before they seek approval, suggesting a lack of oversight. Approval is granted before discussions with the health ministry and there is insufficient opportunity to verify the sources, quality, or the cost of raw materials.
A disturbing trend has emerged where similar prices of similar medicines vary significantly even when they share the same source, quality and production costs. In some cases, as for locally manufactured painkillers, the price increased from Tk 600 in August to Tk 1,000 in September, a 40 per cent increase. Similarly, the price of a solution for treating scabies surged by 68 per cent. The price increase reflect a broader issue of unchecked price escalation, making it increasingly difficult for families to afford necessary medicines. Rising medicine prices have compounded the financial burdens on ordinary people, especially those who rely on life-saving drugs for chronic conditions. The unchecked price increase highlights a significant gap in oversight and protection for the most vulnerable sections of the population.
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Regional price control strategies
In South Asia, countries have adopted varied strategies to regulate medicine prices and ensure people鈥檚 access to affordable health care. In India, the regulation of medicine prices is managed by the National Pharmaceutical Pricing Authority, established in 1997. The authorities enforces the Drugs (Prices Control) Order, which sets maximum retail prices for essential medicines listed in the national list of essential medicines. Pharmaceutical companies are required to adhere to the price limits. For instance, in April, the authorities allowed a marginal increase of 0.0055 per cent in prices of medicines under the national list for inflation adjustment.
The Drug Regulatory Authority oversees medicine prices in Pakistan. The health ministry has proposed amending the Drug Act 1976 to empower the government to regulate prices of imported raw materials and finished drugs. This reform aims at tackling rising medicine costs and improving affordability for the public.
In Nepal, the Department of Drug Administration is responsible for setting prices for 96 essential medicines through a committee. The committee is now inactive. Stakeholders recommend the creation of an autonomous body, with the inclusion market experts and economists, to oversee regular price reviews. Further suggestions include promoting generic prescribing and optimising local manufacturing to reduce medicine prices.
In Bhutan, the government has implemented strategies to regulate medicine prices, focusing on enhancing access to affordable health care. The country is strengthening policies to ensure that life-saving medicines are accessible to all in line with its universal health coverage goals. Key recommendations include harmonising medicine pricing policies, improving regulatory frameworks and promoting sustainable, reforms to ensure long-term affordability and access.
The regional strategies showcase the diverse approaches that the countries have taken to manage medicine prices in efforts to ensure that essential drugs remain affordable and accessible.
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Challenges in Bangladesh
MEDICINES must be stored in a controlled environment with specific temperature regulation to ensure efficacy. Many pharmacies, especially those that have developed haphazardly in various areas, however, lack the necessary infrastructure for proper storage. This negligence adds to significant concern about the effectiveness of medicines sold to consumers. When medicines are retailed, buyers often miss the opportunity to check the expiry date as it is typically printed on the main packaging. In such cases, consumers are sometimes deceived.
Pharmacies must adhere to strict storage standards, including temperature control, to maintain the efficacy of medicines, with regular inspection ensuring compliance. Support should be extended to small pharmacies to help them develop proper storage facilities. Policies should also mandate that expiry dates and other important information are clearly printed on each strip or unit of medicines, ensuring transparency and reducing the risk. Public awareness campaigns should also be launched to educate consumers in the importance of checking expiry dates and understanding proper storage requirements for medicines at home.
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Recommendations
Eliminating unhealthy marketing practice: The pharmaceutical industry must be regulated to eliminate unhealthy marketing tactics. Medicines should be referred to by generic names to ensure transparency and reduce consumer confusion.
Government price regulation: The government should take responsibility for setting and regulating medicine prices, supported by rigorous monitoring and enforcement to ensure compliance with established price limits.
Transparent price list: The drug administration authorities should maintain an easily accessible and regularly updated list of retail prices of all medicines on its web site. This would enable consumers to compare prices and make informed choices.
Capping pharmaceutical profit margins: The profit margins of pharmaceutical companies should be capped to ensure that medicines remain affordable without compromising quality.
Public awareness and use of apps: Public awareness about tools such as MedEx, which provides drug price information, should be increased. Efforts should be made to educate the public in using such platforms as part of their daily healthcare management.
Encouraging fair pricing: Pharmacists and sellers should be encouraged and potentially mandated to sell medicines at fair and regulated prices, ensuring that the market operates in the best interest of consumers.
Centralised pricing portal: A government web site or portal should be developed to consolidate prices of essential goods and services, including medicines. This would improve accessibility, enhance price transparency and promote better regulation.
By implementing the measures, a more transparent, regulated and affordable pharmaceutical market can be fostered and accessibility to essential medicines can be ensured.
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Nafew Sajed Joy is a writer and researcher.
