Health Minister Nalinda Jayathissa confirmed that a drug once priced at Rs. 76,000 is now available for Rs. 359, which he said was the result of monopolistic practices and the influence of a “drug mafia.”
Responding to questions raised by Newswire, the Health Minister explained that the issue is a result of monopolistic practices, where usually only one company is registered to import the particular drug.
“Either other companies are barred from registration, or, even when multiple companies are registered, the drug is effectively imported by just one company,” he said.
At the time the drug was imported there was no pricing formula and the government had purchased the medicines at the price determined by the companies, the Health Minister said.
“From 2019 to 2023, Rs. 342.49 million were spent to purchase this Papuvarine injection. This was at various price points from Rs. 58,000, 62,000, 64,000 and 76,000
The Minister noted that regulatory changes at the National Medicines Regulatory Authority (NMRA) have since addressed the issue.
The NMRA’s Pricing Committee now reviews regional prices before renewing drug registrations, a requirement introduced after the drug was first registered in 2018.
The Health Minister further said that the company involved is politically connected, and an investigation will be launched to determine how approvals were granted under the previous system. (Newswire)