Govt to cap prices of 295 essential medicines

The interim government on Thursday decided to fix the prices of 295 essential medicines in Bangladesh, making it mandatory for all pharmaceutical companies to sell these drugs at government-determined rates.

The decision was taken at a meeting of the Council of Advisers, aimed at ensuring affordable access to medicines for the majority of the population.

“Prices of 295 essential medicines will be fixed by the government, and all companies will have to comply with these rates. The decision will be implemented very soon,” said Professor Dr Md Sayedur Rahman, Special Assistant to the Chief Adviser for the Ministry of Health and Family Welfare, while briefing reporters at the Foreign Service Academy after the meeting.

He said the list of essential medicines covers treatments for diseases affecting nearly 80 percent of the country’s population.

“Once prices are fixed by the government, access to these medicines for a large segment of people will be ensured. This decision has been taken so that the cost of medicines does not become a barrier to healthcare for ordinary citizens,” Sayedur Rahman added.

Describing the move by the interim government as a landmark step, he said companies currently selling medicines at prices higher than the government-fixed rates will have to reduce their prices accordingly.

“Those selling at lower prices may continue to do so, or they can adjust to the government-fixed rates if they wish,” Dr Sayedur Rahman said.

Explaining the pricing mechanism for foreign pharmaceutical companies, he said the government will assess company proposals by considering purchasing power parity (PPP). Separate categories will be maintained for under-patent and off-patent medicines.

“A taskforce was formed which held discussions with all stakeholders involved in drug manufacturing and marketing. Initially, it will function as a Drug Price Authority and gradually evolve into a full-fledged authority. This will help remove existing barriers to access to medicines,” he added.

Dr Sayedur Rahman also said the government plans to establish a dedicated Drug Pricing Authority in the future, responsible solely for determining medicine prices. “Considering global market trends and all relevant factors, medicine prices in the local market will then be more rational.”

Addressing concerns about substandard medicines, he said there is no such thing as a ‘low-quality medicine’. “If a product lacks quality, it ceases to be a medicine and becomes a chemical substance. The government is fully committed to ensuring quality from every aspect.”