E-drug: Prices of essential drugs in developing countries (cont'd).
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Contribution to Drug Pricing Debate: (Ref: John Wong's letter)
[John Wong's letter was dated 260400. KM, moderator]
It is interesting to note that many governments control the retail
prices of commodities. This control also applies to pharmaceutical
products, be they over- the- counter products or prescription only
items. For example, the UK applies such control through one medium
referred to as the Retail Price Maintenance scheme (RPM; I believe
this is still under review?). The key aspect of the RPM is that it
all retail pharmacies offer the same products at the same retail
price. In effect, this allows the same level of access to a product
right across the country. Similarly, the government sets the
prescription charge annually, which applies right across the country.
This arrangement suggests agreement between industry and the
government with respect to product pricing, etc. Industry has
benefited, and likewise, the whole chain of supply as much as the
customers. It also prevents retail pharmacies entering into what I
think is an unwelcome business of advertising their prices and
services (this is another matter for debate!).
Hence the outcry (as far back as mid- 1990's) against removal of the
RPM scheme. Suffice to say a system has been in place which sets a
precedent that other nations can study (I believe this type of
control applies in some parts of Europe, too).
Could such a structure be set up in developing countries? I think the
answer ought to be 'yes'. However, one needs to ensure that relevant
infrastructures (medical, finance people, etc.) are in place to
implement a system of price negotiations with local and global
industry (manufacturers and suppliers), and implementation,
monitoring and control of any directives put into place.
To my knowledge, there is nothing within WTO structures which says that
a government cannot put into place price controls for essential
medical products, specially if they don't infringe any WTO articles.
I'd quickly add that I'd hope such a structure would be different
from 'subsidy policy' as has tended to apply for other commodities
labelled 'essential' (eg, agricultural produce like maize/corn, etc).
I also note that industry is not averse to negotiations of this
nature nor such controls, as long as the negotiations recognise the
need for business to take place.
Regards,
Bonnie
Bonnie Fundafunda Ph.D, MBA, B.Pharm.
Marketing Manager
ECHO International Health Services Limited
Ullswater Crescent, Coulsdon, Surrey CR5 2HR, UK
Tel: +44 (0)20 8660 2220
Fax: +44 (0)20 8668 0751
email: bfunda@echohealth.org.uk
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