ISLAMABAD:
Some members of the federal cabinet have raised serious questions about the pricing of locally manufactured vaccines and the monopolistic practices of pharmaceutical companies.
The government also agreed to provide a buy-back guarantee for locally manufactured vaccines.
In a meeting chaired by Prime Minister Shehbaz Sharif on Saturday, the cabinet gave in-principle approval to the national policy for development of indigenous vaccine production.
However, he also formed a committee on national policy to advance indigenous vaccine production, tasked with making recommendations for determining prices of locally manufactured vaccines.
The committee will examine factors determining local vaccine production costs and pricing issues that may arise after local vaccine production begins under the new policy.
The committee will also study international best practices adopted globally for vaccine pricing, which could prevent excessive profiteering by the proposed National Vaccine Alliance.
The National Vaccine Alliance, made up of pharmaceutical companies, will be given responsibility for domestic 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 fair prices.
It will also propose an institutional arrangement to ensure that the provinces are fully integrated into the policy framework.
During the discussion, cabinet members observed that it was essential to determine the costing and pricing model that the National Vaccine Alliance would follow.
Cabinet members further said the government’s buyback guarantee made it all the more important to verify the details of the costing and pricing model the alliance would adopt.
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 highlighted the need to strengthen the capacity of the Drug Regulatory Authority of Pakistan (DRAP), so that it can effectively monitor vaccine prices and ensure that vaccines produced in Pakistan conform to international standards set by WHO.
Responding to the cabinet members’ observations, National Health Services Minister Mustafa Kamal said that due to high production costs, especially research and development expenses, pharmaceutical companies were reluctant to produce vaccines unless given proper incentives.
He said that to encourage vaccine production, the global business model is to form alliances between 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 development of indigenous vaccine production, the price of alliance vaccines would be subject to DRAP regulation.
DRAP will ensure that vaccines are available to the public at reasonable prices.
