Govt to end uncontrollable pricing of drugs

Govt to end uncontrollable pricing of drugs

The Jakarta Post, Jakarta

As a mother of a toddler, 31-year old housewife Nita always
faces problems when someone in her family falls sick. "Seeing a
doctor is not a problem, but buying the prescribed medicine
afterwards often concerns me," she said.

Most of the time when her son falls ill, the family has to
reach deep into their pockets as even a mild flu could cost them
Rp 250,000 (about US$26) for medicine only.

"It worries me when the doctor starts to write down a
prescription for a long list of medicine," Nita sighed, adding
that she often needs to consult a relative who works as a
pharmacist on which drugs she needs to prioritize and which can
be delayed.

"I, of course, opt for cheaper but effective generic drugs,"
she said. "But, we (consumers) have no idea of what the options
are."

Complaints on how expensive medicine is, has prompted the
Ministry of Health to evaluate market prices by establishing a
drug prices rationalization team that will publish a list of
reference prices as early as next month.

Marius Widjajarta, chairman of the Indonesian Consumer Health
Empowerment Foundation, who is also a member of the team, said
that the work was aimed at protecting consumers from uncontrolled
pricing of drugs.

"We have to rely on the pharmaceutical companies on drug
prices without knowing if such pricing is normal," he said.

He pointed out as an example that a capsule of generic
amoxicillin -- a widely-prescribed antibiotic -- only costs Rp
454, whereas a branded-generic amoxicillin capsule is sold for Rp
3,000. "The later is not even a patented drug, but it is seven
times more expensive," he added.

Generic drugs are mass-produced medicine sold under the name
of its predominant chemical ingredients, while branded-generics
are generic drugs sold under a company's brand. Branded-generics
are usually sold at a higher price than generic drugs. Meanwhile,
patented drugs, sold at a premium price, are those produced by a
sole patent-holder.

"We are evaluating how much it really costs for a
pharmaceutical company to produce a branded-generic and then come
out with a reference for the highest prices allowable," he said.

Currently, the health ministry has only issued a reference
list of prices for generic drugs, but has not issued any
regulation on branded-generic drugs.

The team, he explained, will also make it mandatory for the
company to have its suggested retail price printed on the label
of the smallest package of medicine. "Right now we have started
by urging producers to print the generic name of a drug under its
brand," he said.

Such a measure would help consumers identify what kind of
drugs they are taking and allow them to choose between patented,
generic or branded-generic drugs, Marius added.

"We have completed almost 80 percent of the work and will
release the list of reference prices as soon as the health
minister signs the decree," he said.

It seems that consumers, like Nita, will still have to wait a
while before the decision is made official, as the pharmaceutical
industry association is still opposed to the plan.

Meanwhile, consumers will have to rely on information from the
Drug Information Center on tel: 021-42889117, or a 24-hour
service on tel: 0812-1899530. Questions regarding the use of
medicine can also be e-mailed to informasi@pom.go.id, while
current reference prices for essential generic drugs can be
obtained from www.yanfar.go.id.(003)