Pharma manufacturers seek 20 per cent price hike

Cite rupee depreciation, material prices, logistics costs

The Pharmaceutical Manufacturers’ Association yesterday (21) requested a 20 per cent price increase for medicines, citing the challenges currently facing manufacturers, particularly the depreciation of the Rupee and surging ingredient prices.

When contacted by The Daily Morning, the Association’s President Nalin Kannangara said that medicine prices have not seen an increase in two years, and that under the current circumstances, the industry would not function properly without a price hike.

“We are witnessing sharp increases in the prices of active pharmaceutical ingredients, excipients, and packaging materials. In addition, logistics and insurance costs have increased nearly three to four times compared to previous levels, placing considerable pressure on overall production costs. Further, the prevailing fuel constraints within Sri Lanka have created operational challenges for manufacturers. Companies are incurring additional transportation costs to ensure staff attendance and maintain uninterrupted factory operations, resulting in a significant increase in factory overheads,” he added.

According to Kannangara, the Rupee has depreciated by more than 10% against the United States Dollar since the last Pricing Committee meeting, further intensifying the financial burden on local manufacturers who rely heavily on imported raw materials and inputs.

He added that if these cost pressures continue without timely adjustments, it may inevitably create serious constraints on the manufacturers’ ability to maintain uninterrupted supplies, which could ultimately affect the availability of essential medicines within the healthcare system.

He also mentioned that the Association had sent a letter to the Health Ministry and the National Medicines Regulatory Authority requesting a meeting to discuss these matters, but has not yet received a positive response.

Attempts to contact the Deputy Health Minister Dr Hansaka Wijemuni proved futile. 

Source - The Morning