Price war in generic drugs intensifies: Lawmaker
Price war in generic drugs intensifies: Lawmaker
Dewi Santoso, The Jakarta Post, Jakarta
A legislator expressed concern on Tuesday about a price war among
the country's generic medicine producers, fearing it would prompt
drug trade in the black market.
House of Representatives Commission VII deputy chairman Surya
Chandra Surapaty said the price war was the result of producers'
aggressive promotion by offering huge discounts to distributors,
leading to an increase in demand for their products.
"This is unhealthy competition that will deprive consumers of
their rights," he said.
His observation of three different pharmaceutical companies
from September to December this year found that prices of generic
drugs varied from one company to another.
Ciprofloxacin 250 milligram tablets, for example, was sold at
Rp 157,096 (US$18.5) for one box containing 50 tablets. But if
distributors bought between 18 and 54 boxes, they would receive
an 80 percent discount.
At Dexa Pharmaceutical Company, Surya found distributors could
buy Omeprazol 20 milligram tablets at an 88 percent discount if
they bought at least 85 boxes of 30 tablets each.
Nifedipin 10 milligram tablets produced by state
pharmaceutical firm PT Kalbe Farma were sold to distributors at a
40 percent discount if they bought a minimum two boxes of 100
tablets each.
"It's ironic that producers ask for an increase in generic
drug prices, while at the same time give big discounts to
distributors," he said.
The government increased the prices of generic drugs following
demand from producers, who complained about the country's
fluctuating currency against the greenback that caused uncertain
prices of imported raw materials.
"Now that our currency is stable, why should we increase
generic drug prices?," Surya told The Jakarta Post.
He asserted drug prices could not be raised as people had to
buy them to cure their illnesses.
"Thus, we urge the government to immediately formulate a
regulation that will allow the monitoring of the distribution of
medicines and their prices," he said.
He added that a transparent regulation, including the
implementation of price labeling, would guarantee consumers'
rights.
The House has urged Minister of Health Achmad Sujudi to take
action to end the price war.
"The government is now in the process of forming a National
Medicine Commission, which will decide on drug regulations,"
Surya said. The commission will fall under the Coordinating
Minister of People's Welfare.
When asked whether the government would comply with the
House's demand, Sujudi said: "The government will not back down
from its decision to increase the prices of generic drugs."