Drug price control bill hits trade snag

Drug price control bill hits trade snag

Firms risk revealing commercial details

Protesting HIV/Aids patients and civic groups in May 2015 call on the Public Health Ministry and the Commerce Ministry to solve the problem of an overpriced drug that is used to treat hepatitis C. One of the placards reads: “Cost: 71 baht, Price tag: 30,000 baht”. (Bangkok Post photo)
Protesting HIV/Aids patients and civic groups in May 2015 call on the Public Health Ministry and the Commerce Ministry to solve the problem of an overpriced drug that is used to treat hepatitis C. One of the placards reads: “Cost: 71 baht, Price tag: 30,000 baht”. (Bangkok Post photo)

A clause in a revised drugs bill requiring drug companies to reveal their pricing structures in the patent registration process might conflict with various international trade principles, said Deputy Prime Minister Yongyuth Yuthavong.

Speaking after the National Drug System Development Committee's meeting yesterday at the Food and Drug Administration (FDA)'s headquarters, Mr Yongyuth, also the panel's chairman, said the demand for drug firms to reveal price structures would entail revealing confidential information and intellectual property.

Civic groups have demanded the drug bill require companies to show their products' price structures so the government can tackle the problem of overpriced drugs at its core. The bill is currently awaiting cabinet scrutiny. 

Drug companies determine product prices based on the drugs' safety and efficiency, Mr Yongyuth said.

But he suggested a separate mechanism in which a panel sets median prices as a way of solving the price control problem.

Boonchai Somboonsook, the FDA's secretary general, said a committee will be formed to study the median drug price idea.

A time frame hasn't yet been set.

He said price controls in the country could be based on production costs, maximum profits, price comparisons with other countries at similar levels of economic development, price comparisons to similar drugs, and individual price negotiations between hospital operators and drug companies.

Civic groups last month demanded Public Health Minister Rajata Rajatanavin take action against overpriced drugs and medical fees in private hospitals.

In response, Dr Rajata set up a committee which proposed that private hospital operators display drug product pricing on their packaging.

Niyada Kiatying-Angsulee, a pharmacist and manager of the NGO Thai Drug Watch, insisted the bill must force drug firms to reveal price structures.

"Public support for the bill shows the government has not tried hard enough to protect people and help them buy drugs at reasonable prices," she said.

She also criticised Dr Rajata's committee for offering only short-term solutions.

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