Medicine pricing policy must balance affordability, access and industry growth: Experts

Bangladesh needs a new medicine pricing policy that reduces treatment costs for patients, access to essential medicines and the sustainable growth of the pharmaceutical industry, experts said at a seminar yesterday (22 August).

They made the recommendations at the seminar, titled "Medicine Price: Arguments and Way Forward", organised virtually by the Power and Participation Research Centre (PPRC).

PPRC Executive Chairman Hossain Zillur Rahman, who moderated the event, said medicines accounted for the largest share of Bangladesh's healthcare spending, with patients bearing the cost directly because of the absence of health insurance.

Infographics: TBS

"The pricing policy must focus on patients' financial protection, healthy industrial growth, scientific pricing formulas and government health protection for the poor," he said.

Syed Abdul Hamid, a professor at the Institute of Health Economics at the University of Dhaka, said the prices of 117 essential medicines fixed in 1994 had not been regularly reviewed for nearly three decades.

Rising production costs had forced some companies to stop producing the medicines, while others were subsidising them with profits from other products, he said.

He proposed an independent medicine pricing authority modelled on India and annual price adjustments based on inflation.

Professor Rumana Huque, executive director of the ARK Foundation, said Bangladesh's annual medicine consumption was worth around Tk37,000 crore, of which about Tk35,000 crore was paid out of pocket.

Shortages of subsidised medicines at public hospitals forced patients to buy them privately, while weak referral systems, over-the-counter sales and the practice of following others' prescriptions added to unnecessary spending, she said.

Rumana called for data-based regulation across the supply chain, regular updates to the essential medicine list, generic-name sales and tighter monitoring of government-supplied medicines. 

Kaiser Kabir, CEO of Renata Limited, said Bangladesh had some of the world's lowest medicine prices because of strong competition, a dense market and a short supply chain, making allegations of syndicates unrealistic.

With more than 100 companies competing in the market, firms could not freely raise prices without risking market share, he said.

Backing the cancellation of the February 2026 price gazette, Kaiser said restoring it could harm both the industry and public health. The measles outbreak had shown that patients suffered most when medicine supplies were disrupted, he said.

He also said medicines did not impose the same financial burden on all patients. A patient, for example, might spend Tk66 a month on thyroid treatment, while cancer treatment could cost Tk500 a day.

"The government should procure high-cost, life-saving medicines on a large scale and provide them to patients free of charge," he said.

Public Health Expert M Mushtuq Hussain said the February 2026 gazette had sought to expand the essential medicine list in line with WHO recommendations and introduce a new pricing mechanism. "If there were controversies, they could have been amended, but cancelling the entire gazette was a regressive decision for public health," he said.

He called for increased state subsidies for essential medicines, free or nominal-cost supplies to public hospitals through the Central Medical Stores Depot (CMSD), and increased production capacity at Essential Drugs Company Limited (EDCL).

He also proposed an autonomous authority to review medicine prices every one or two years.

Jyotirmoy Barua, an advocate at the Bangladesh Supreme Court, said effective government regulation of medicine prices is essential because access to medicines is linked to the right to life.

He said the previous system for fixing prices of 117 medicines was never formally gazetted. Although the 2023 law provides for price-setting of listed medicines, the list itself has yet to be published.

"In reality, companies often determine prices, which are later validated by the Directorate General of Drug Administration," he said, calling for a transparent pricing framework and greater consumer participation.

M Musaddek Hossain, senior vice president at Bangladesh Association of Pharmaceutical Industries, said the local pharmaceutical industry meets about 98% of domestic demand and now produces medicines for almost all major diseases, including cancer, HIV and tuberculosis.

However, he said the failure to adjust prices of the 117 essential medicines for years has created negative margins for some products and caused supply shortages.

"Patients' interests are important, but a realistic pricing policy is also necessary to ensure high-quality raw materials and a proper manufacturing environment," he said.

Calling the cancellation of the February 2026 price gazette the right decision, Musaddek said the new policy should be formulated through consultations among the government, experts and industry.