E-DRUG: Changes in medicines prices in the UAE
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[Copied for fair use; WB]
Interesting newspaper article on 'one approach' of containment of medicines
prices!
Joseph Serutoke, Jr.
Pharmacist
Kampala, Uganda.
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By Barbara Bibbo
Staff Reporter, The Gulf News
Abu Dhabi
28.03.2004
The prices of some 1,500 over-the-counter food supplements, vitamins,
minerals and medicines sold by pharmacies are likely to be reduced by up to
15 per cent.
The Ministry of Health is studying whether the prices of these items should
be regulated.
Humaid Mohammed Al Amri, Assistant Secretary for Pharmacy and Supplies at
the ministry, said the ministry's plan is to further regulate the market in
the UAE, one of the most expensive in the region, and bring it in line with
other markets.
Last week the ministry regulated the prices of around 1,200 pharmaceutical
products. The new prices are to come into effect from mid-June.
In a bid to curb the prices of drugs sold at pharmacies, Hamad Abdul Rahman
Al Madfa, Minister of Health, last week issued a ministerial decree that
said the profit margin on these products must be reduced from 70 per cent
to 55 per cent.
The decree that will become effective on June 15 says 25 per cent of the
profit will go to the agents and 30 per cent to the pharmacies.
Earlier, the profit margin for agents was 27.5 per cent and pharmacies 42.5
per cent. He said in Saudi Arabia the profit margin for pharmacies is 20
per cent. In other Gulf countries it ranges between 30 and 32 per cent.
Al Amri said Gulf countries are working towards unifying drug prices and an
agreement could be reached as soon as September.
The 70 per cent profit margin had been fixed in 1984 and needed to be
reviewed.
"Our market has changed a lot since 1984. It has become bigger because of
the increase in population and a lot of new drugs have been introduced. The
market will continue to grow and agents and pharmacies will not have to
worry about their profits.
"The decision has been taken after talks with the sector and our
neighbouring countries. In addition, studies and analysis of the market
trends indicated that we should reduce prices."
Al Amri said after the ministerial decree comes into effect the UAE market
will become the second cheapest in the region after Saudi Arabia.
"People were suffering - we received many complaints from the public
regarding the cost of medicines. Many realised drugs were cheaper in other
countries. We also got information from post offices that an increasing
number of drugs were being purchased or smuggled through the post."
A list of the drugs, whose prices are being regulated, is being prepared by
the Department of Drug Control and will be distributed soon to all
pharmacies. Many of these drugs are used in the treatment of diabetes,
blood pressure and other chronic conditions.
"We also took into consideration the fact chronic conditions are affecting
an increasing number of patients who need life-long treatment. This
results, in most cases, in huge expenditure."
Profit margins become deflated
* The Minister of Health last week issued a ministerial decree reducing the
profit margin on pharmaceutical products from 70 per cent to 55 per cent.
* The decree says 25 per cent of the profit will go to the agents and 30
per cent to the pharmacies.
* Earlier, the profit margin for agents was 27.5 per cent and pharmacies
42.5 per cent.
* The new prices will become effective from June 15.
* At the moment prices of medicines in the UAE are among the highest in the
region.
* Medicines are cheapest in Saudi Arabia where the profit margin for
pharmacies is 20 per cent.
* In other Gulf countries the profit margin of pharmacies ranges between 30
and 32 per cent.
* A list of the drugs, whose prices are being regulated, is being prepared
by the Department of Drug Control and will be distributed soon to all
pharmacies.
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