May 17: Pharmaceutical companies have stopped production of major drugs used for the treatment of coronavirus patients citing price hike of raw materials. The drug manufacturers have stopped producing drugs such as paracetamol, zinc, vitamin C, and doxycycline, and azithromycin used for treating lung infection.

The Association of Pharmaceutical Producers of Nepal, which has been pressuring the Department of Health Services for price adjustment for the past three years. The association has informed the department that they cannot produce the medicines at the same rates as the prices of raw materials have increased. They claim that they have to incur more for the raw materials than they earn from selling the medicines at the current rate.

President of the association Narayan Chhetri said that it is not possible to produce the medicines as the cost price has become higher than the selling price. He said that the government had last adjusted the price 14 years ago and now it is not possible to produce medicines at that same price. "Paracetamol is already in short supply in some places," he said. "Who will produce medicines at a loss?” he questioned.

He admits that the price of essential medicines should not be too high, but says that the government authorities should adjust the price.

Entrepreneurs have been saying that the price of medicine has not been adjusted since the association and the department adjusted the price in September 2008. But the government claims that it had increased the prices of 21 types of medicines some three years ago.

Chhetri argues that the price of the product has gone up as the prices of raw materials have increased four folds. 

Stating that paracetamol is still available in the market at Re 1 per tablet while the cost price is around Rs 1.5, he questioned how long will the company produce them bearing loss.

This has already created shortage of medicines in the market. However, Chhetri says medicines can be imported easily, but the question is about quality assurance of the cheap drugs.

The association has demanded that the price of medicine should be adjusted every six months

Drug manufacturer Deepak Dahal said that the manufacturers have stopped producing drugs because they have been bearing massive loss.

"We could have produced medicine for social service. But with a negative balance sheet, the bank will not give us any loan and it won't be possible for us to operate," he informed.

He said that not only the private industry but also the government-owned Nepal Aushadhi Limited has stopped producing such drugs. 

"We are not trying to put pressure on the government to increase the price to take advantage of the opportunity. The demand for a price adjustment for the last three years has not been addressed," he added.

Spokesperson of the department Dr Santosh KC said that the department will form a group to decide on the price adjustment.