ISLAMABAD:
Some members of the federal cabinet have raised serious questions about the prices of locally produced vaccines and the monopolistic practices of pharmaceutical companies.
The government has also agreed to provide a buy-back guarantee for the locally produced vaccines.
During a meeting chaired by Prime Minister Shehbaz Sharif on Saturday, the cabinet gave in-principle approval to the national policy to promote indigenous vaccine production.
However, it also formed a Committee on National Policy for the Promotion of Indigenous Vaccine Production to make recommendations to determine the prices of locally produced vaccines.
The committee will examine the factors that determine the cost of local vaccine production and the price conditions that may arise after the commencement of local vaccine production under the new policy.
The committee will also study international best practices adopted globally for vaccine pricing that could prevent excessive profiteering by the proposed National Vaccine Alliance.
The National Vaccine Alliance – composed of pharmaceutical companies – will be entrusted with the responsibility for indigenous vaccine production once the draft policy is implemented.
The committee will propose a fair pricing model for locally produced vaccines and suggest standards and safeguards to ensure that vaccines produced by the proposed alliance meet the highest international standards and are available at reasonable prices.
It will also propose an institutional arrangement to ensure that the provinces are fully integrated into the political framework.
During the discussion, the cabinet members noted that it was essential to establish the cost and pricing model that the National Vaccine Alliance would follow.
The cabinet members further argued that the government’s buy-back guarantee made it even more important to learn the details of the cost and pricing model the alliance would adopt.
It said that since the alliance would essentially operate as a monopoly, it was imperative to ensure that it did not charge exorbitant prices to the detriment of vaccine users.
The cabinet members also emphasized the need for capacity building of the Drug Regulatory Authority of Pakistan (DRAP) so that it could effectively monitor vaccine prices and ensure that vaccines produced in Pakistan complied with international standards set by the WHO.
Responding to the cabinet members’ remarks, National Health Services Minister Mustafa Kamal said that due to high production costs, especially research and development costs, pharmaceutical companies were reluctant to produce vaccines unless given appropriate incentives.
He said that to encourage vaccine production, the global economic model is to form alliances of several pharmaceutical companies so that they can achieve economies of scale and ensure profitability.
The Minister informed the Cabinet that under the draft National Policy for the Promotion of Indigenous Vaccine Production, the alliance’s vaccine prices would be subject to DRAP regulation.
DRAP will ensure that vaccines are available to the public at reasonable prices.
