# \[e-drug\] Drug Pricing in South Africa

**URL:** <https://talk.edrugplus.org/t/e-drug-drug-pricing-in-south-africa/10539>\
**Category:** e-drug\
**Created:** [March 1, 2001, 7:18pm UTC](https://talk.edrugplus.org/t/e-drug-drug-pricing-in-south-africa/10539 "2001-03-01T19:18:33Z")\
**Posts on this page:** 1\
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**Author:** ![andy](https://avatars.discourse-cdn.com/v4/letter/a/aeb1de/32.png) [@andy](https://talk.edrugplus.org/u/andy)\
**Post date:** [March 1, 2001, 7:18pm UTC](https://talk.edrugplus.org/t/e-drug-drug-pricing-in-south-africa/10539/1 "2001-03-01T19:18:33Z")

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E-DRUG: Drug Pricing in South Africa  
------------------------------------  
[crossposted from DRUGINFO with thanks. For the non-south  
Africans: the Health System Trust issues a report on the  
health situation in South Africa. This year drug prices  
are analyzed in one of its chapters. Well done, Andy! WB]

Hi all

Today the Health Systems Trust's annual publication, the South  
African Health Review 2000, was launched in Johannesburg. This  
year I contributed, together with my colleague Thulani Matsebula  
from the Wits Centre for Health Policy, a chapter on Drug Pricing.

An html version can be viewed at:  
[http://www.hst.org.za/sahr/2000/chapter9.htm](http://www.hst.org.za/sahr/2000/chapter9.htm)

In addition, it is available as a .pdf file (276kB) at  
ftp://ftp.hst.org.za/pubs/Sahr/2000/chapter9.pdf, with the  
references as a separate file  
([http://www.hst.org.za/sahr/2000/refs.htm#Chapter](http://www.hst.org.za/sahr/2000/refs.htm#Chapter) 9)

A summary brief issued at the launch is also available at:  
[http://www.hst.org.za/sahr/2000/summaries/drug.htm](http://www.hst.org.za/sahr/2000/summaries/drug.htm)

The abstracts reads as follows: "Improving access to necessary  
drugs requires attention to all four component parts of the access  
equation � ensuring rational selection, providing sustainable  
financing and efficient systems to distribute and use the drugs but  
also making sure that prices are affordable. However, comparing  
drugs prices across countries and health systems is not always  
easy. Methodological pitfalls abound, and have in the past  
ensnared the South African Ministry of Health. The National Drug  
Policy contains a variety of proposed strategies to reduce the price  
of medicines in South Africa. This chapter considers the complex  
issue of drug pricing, the policy options outlined and available, and  
provides recommendations on steps that will advance the  
implementation of such policies".

The chapter calls for :  
"\* More detailed data on price trends in both the private and public  
sectors  
\* More analysis of the impacts of policy decisions, with emphasis  
on indicators of equity, affordability and availability  
\* Finality on those policy choices which seem to hold clear  
advantages (such as fixed professional fees and non-discriminatory  
exit pricing based on volume)  
\* Finality on the legal struggle to introduce generic substitution, to  
regulate marketing practices and to exploit the safeguards provided  
by the TRIPS Agreement  
\* Consideration of regional options, including bulk purchasing  
across the SADC region".

It concludes that: "Crucial to the success of these options will be  
strengthening of the national departments responsible, the  
Directorate: Pharmaceutical Programmes and Planning (and in  
particular the sub-directorate of Medical Stores and Systems,  
which provides the secretariat to COMED) and the Directorate:  
Medicines Administration (the secretariat to the Medicines Control  
Council). Significant strengthening of the inspectorate functions of  
the MCC will also be necessary if the potential pitfalls of parallel  
trade and compulsory licensing are to be avoided. Strengthening  
the entire system will ensure that the populace is not exposed to  
counterfeit and sub-standard medicines and will demonstrate that  
such exposure is not an inevitable consequence of the policy  
choices outlined in this chapter. In this regard, South Africa  
remains a test case, one watched closely by the international  
community".

I would welcome any comments on the chapter from list  
participants, or any updates on what is by now a document 4  
months out of date!

regards  
Andy
