Cut in drug prices unlikely but supply guaranteed

Cut in drug prices unlikely but supply guaranteed

JAKARTA (JP): The economic crisis, said Naswan, a 52-year-old
worker with serious heart problems, has had a "good effect" on
him.

"Now, I'm paying serious attention to my diet," said Naswan.
He used to ignore his doctor's advice to control his diet and
reduce work hours.

"I obey him not only because of the high medical costs but
also out of fear that my drugs will no longer be available in the
drugstores," Naswan said.

While local drug-producing companies are experiencing
difficulties, members of the International Pharmaceutical
Manufacturers Group said the public can rest assured of their
drug supplies.

The government's Rp 700 billion subsidy for imported generic
drugs and life-saving medical equipment, and the issuance of a
US$58 million Letter of Credit in February to help cover
pharmaceutical needs for three months, do not include the group's
39 members.

Neil Weston, president director of the Servier pharmaceutical
manufacturer, said international pharmaceutical companies are
continuing supplies as normal.

Members are basically foreign companies which have access to
raw materials and active ingredients, many of which they produce
themselves.

"We have enough stocks of raw materials. Our total inventory
normally covers four months average at any time," said Richard
Husada, president director of the Dumex-Alpharma pharmaceutical
company and the group's vice chairman.

The firm, he said, has seen a decline in sales by 30 percent.

The group's members produce both patent and generic products.

As most raw materials for their products are imported, the
group's members have raised prices by up to 90 percent.

"Products that have had the highest increases are those that
are fully imported and paid for in U.S. dollars. Others which
have a lower dollar component have been able to be more
moderately priced," said Bruce Murdoch, the group's chairman and
president director of Schering Plough.

Richard said Dumex-Alpharma spends an average of 40 percent of
the net price on imported raw materials.

Consumers reporting higher drug prices have complained of
increases of up to 300 percent.

For instance, insulin has increased from Rp 300,000 to Rp 1.2
million.

In response to the reports, the group said it has not raised
prices to such an extent, but, as Weston acknowledged, the
manufacturers cannot control the prices passed on to consumers.

Meanwhile, the price of generic drugs are monitored by a
government team, to prevent pharmacies from raising the prices
above the allowed margin of 50 percent.

The soaring drug prices have caught the attention of the
Indonesian Consumers Foundation, which has just completed its
latest survey on the country's drugs' prices.

The findings will be compared with other countries in the
Asia-Pacific region before being made public in the next few
months.

In its 1995 survey, before the crisis hit, the foundation
found that prices were up to four times higher than in some other
countries.

Ida Marlinda, project head for the foundation's latest survey
on drug prices, said the increase in prices may be higher now
than reported.

Because patent drug prices are not being controlled by the
government, and because pharmacies can increase manufacturers'
prices, she said "the increase of prices is difficult to
determine".

Pharmacies have also said they must adjust prices because
prices set by distributors have increased by more than 50
percent.

Chairman of the Indonesian Medical Association, Merdias
Almatsier, joined the call for manufacturers, distributors and
pharmacies against further increasing drug prices.

"People are already facing many problems now ... don't burden
them more. The pharmaceutical business is not merely about
gaining profits but also about saving lives," he said.

One reason patent drugs are more expensive is the cost for
research.

According to the International Federation of Pharmaceutical
Manufacturers, the research and development cost for each new
drug entity is between $150 million and $350 million.

The problem of reducing drug manufacturers' high dependence on
imported raw materials has become classic -- large investments.

"It is only possible to reduce the dependence on imported raw
materials, or active ingredients, if a domestic chemical industry
is developed. This would take substantial investment," said the
federation's chairman Murdoch.

The average chemical plant producing two to three active
ingredients would cost between $150 million to $350 million, he
said. To enable lower costs in drug manufacturing and
distribution, Weston suggested reducing import tariffs and
deregulating the pharmaceutical industry. (ste)

Table: Price list of some patent drugs (in rupiah)

(No; Products; Jan. 1 1997; Jan. 1 1998; Jan. 20 1998; Feb. 10 1998):
(1; Amcillin caps. 250 mg/100; 27,720; 32,930; 32,950; 49,500),
(2; Amcillin tabs. 500 mg/100; 53,724; 63,820; 63,900; 96,860),
(3; Amcillin D.S syrup 60 ml; 6,720; 7,900; 8,000; 12;000),
(4; Amcillin inj.500 mg/10 vls; 27,800; 30,086; 30,100; 45,150),
(5; Amcillin inj. 1g/10vls; 44,800; 46,384; 48,400; 72,800),
(6; Chloramex caps 250 mg/100; 25,500; 25,500; 28,100; 42,150),
(7; Chloramex syrup 60 ml; 4,600; 4,600; 5,100; 7,050),
(8; Chloramex inj. 1g/10 vls; 40,000; 40,000; 44,000; 66,000),
(9; Colistine tabs. 0.25 Mlu; 26,400; 32,080; 32,100; 45,150),
(10; Colistine tabs. 1.5 Mlu; 72,276; 87,615; 87,000; 131,850),
(11; Danoxilin caps. 250 mg/100; 66,792; 79,350; 79,350; 119,000),
(12; Danoxilin inj. 1 g/10vls; 79,200; 85,538; 86,000; 128,400),
(13; Danoxilin disp. tabs 500mg; --; 62,500; 62,500; 93,750),
(14; Dinomark inj. 400 mg/10vls; 70,000; 70,000; 77,000;116,500),
(15; Dinomark tabs. 200 mg; 86,000; 86,000; 93,500; 140,250),
(16; Dumocycline caps. 250 mg; 56,373; 60,883; 60,900; 110,000),
(17; Dumocycline tabs. 500 mg; 34,630; 42,075; 42,100; 63,150),
(18; Dumoxin tabs. 100 mg /50; 74,250; 74,250; 81,700; 122,550),
(19; Fenocin tabs. 0.2 Mlu; 43,550; 43,550; 47,900; 79,000),
(20; Kanoxin inj. 1 g/10vls; 24,545; 24,545; 27,000; 40,500),
(21; Dumotrim tabs. /100; 36,960; 36,960; 40,750; 61,125),
(22; Dumotrim forte/100; 75,000; 75,000; 82,600; 123,750),
(23; Dumotrim syrup 50 ml; 8,710; 8,710; 9,600; 14,400),
(24; Elyzol tabs. 500 mg/100; 102,276; 102,276; 112,500; 168,750),
(25; Elyzol infus 500 mg/100 ml; --; 20,000; 22,000; 33,000),
(26; Isonex syrup 225 ml; 4,410; 4,410; 4,900; 7,500),
(27; Malarex tabs. 250 mg/1,000; 97,700; 97,700; 107,500; 151,250),
(28; Suldox tabs. 15x4g; 36,730; 36,730; 40,500; 60,750),
(29; Dumolid tabs. 5 mg/100; 41,760; 50,740; 50,750; 77,000),
(30; Stesolid tabs. 5 mg/100; 33,192; 42,330; 42,400; 65,000),
(31; Stesolid syrup 60 ml; 7,728; 9,390; 9,500; 14,250),
(32; Stesolid inj. 2 ml/5 amp; 9,804; 11,925; 11,950; 18,000),
(33; Stesolid Rectal tube 10mg; 27,628; 33,440; 33,500; 50,500),
(34; Confortid caps. 25 mg/100; 43,920; 43,920; 48,500; 72,750),
(35; Somadril comp./100; 34,500; 41,000; 41,000; 61,500),
(36; Diflonid tabs. 500 mg/50; 53,440; 53,440; 54,300; 96,450),
(37; Deflamat inj.2ml/5 amp; --; 21,000; 23,100; 34,680),
(38; Dains caps. 10 mg/50; --; 32,500; 35,760; 53,700),
(39; Dains D tabs 20 mg/50; --; --; --; 110,000),
(40; Dopamet tabs. 250 mg/100; 39,180; 39,180; 43,100; 65,000),
(41; Dubrozil caps. 300 mg/100; --; 90,000; 99,000; 128,700),
(42; Dubrozil caplet 600 mg/50; --; 85,000; 93,500; 121,560),
(43; Decreten tabs. 10 mg/50; 61,000; 61,000; 67,500; 101,250),
(44; Impugan tabs. 40 mg/100; 48,750; 48,750; 53,700; 80,550),
(45; Impugan inj. 2ml/8 amp; 7,841; 7,841; 8,700; 13,500),
(46; Lorinid tabs./50; 34,440; 34,440; 37,900; 58,650),
(47; Lorinid Mita /50; 26,775; 26,775; 29,600; 44,250),
(48; Antabuse /20; 9,146; 9,146; 9,146; 15,000),
(49; Apolar cream 10gr/tube; 8,334; 10,125; 10,125; 15,200),
(50; Apolar-N cream 10gr/tube; 9,444; 11,475; 11,475; 17,300),
(51; Ennamax tabs/100; 11,000; 11,000; 12,250; 18,400),
(52; Raclonid tabs./100; 30,460; 30,460; 33,800; 50,400),
(53; Raclonid syrup 50ml; 4,290; 4,290; 4,750; 7,200),
(54; Raclonid inj./5 amp; 10,890; 10,890; 12,000; 16,000),
(55; Ascoplex caps./100; 22,800; 22,800; 25,500; 38,250),
(56; Biomex tabs/100; 28,895; 28,895; 31,800; 47,700),
(57; Dumocalcin Peppermint/100; 12,650; 15,370; 15,500; 23,250),
(58; Dumocalcin Chocolate/100; 12,650; 15,370; 15,500; 23,250),
(59; Durol tonic 60 ml; 1,400; 1,400; 1,500; 3,500),
(60; Multivitaplex elixir 126ml; 5,900; 5,900; 6,500; 9,750),
(61; Multivitaplex P.Drops 15ml; 4,610; 4,610; 5,100; 7,650),
(62; Multivitaplex tabs./100; 6,100; 6,100; 6,800; 10,200),
(63; Vitamineral tabs./100; 15,300; 15,300; 16,900; 25,360),
(64; Koffex syrup 120 ml; 5,420; 5,420; 6,000; 8,000),
(65; Longatin syrup 60 ml; 4,579; 4,579; 5,200; 7,800),
(66; Longatin caps. 50 mg/100; 34,267; 34,267; 37,750; 56,700),
(67; Dumin tabs. 500 mg/1,000; 92,808; 112,400; 12,500; 168,750),
(68; Dumin syrup 60 ml; 4,120; 5,000; 5,000; 7,500),
(69; Dusal tabs.; 6,958; 6,958; 7,750; 11,750),
(70; Floxil Lozenges; 10,450; 10,450; 11,500; 17,250),
(71; Stimol sachet/30; 49,000; 49,000; 53,900; 81,000),
(72; Waxsol 10 ml; 10,150; 10,150; 11,200; 16,800),
(73; Pyralvex 10 ml; 10,000; 10,000; 11,000; 16,500),
(74; Decubal Cream 20 g; 4,500; 4,500; 4,950; 7,500)

Source: Dumex-Alpharma price list dated March 11, 1998.
Prices do not include value-added tax.