Reducing chronic disease drug prices by 28%
The Ministry of Health threatens drug price manipulators with “severe penalties”
The decision to reduce drug prices takes effect from today. Photo: Osama Abu Ghanem
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The Assistant Undersecretary of the Ministry of Health for Medical Practices and Licensing, Head of the Drug Price Reduction Team, Dr. Amin Al-Amiri, stated that “the decision to reduce drug prices, to be implemented as of today, will reduce drug prices by between 20 and 28%, depending on the price value of the drug.” He explained that the list includes medicines and prescriptions for chronic diseases, stressing that all pharmacies numbering about 2,000 pharmacies will adhere to the implementation of the reduction decision, vowing to violators of severe penalties.
On the sidelines of the announcement of the “New Drug Pricing System” initiative, yesterday, Al-Amiri added that “the new price list has been sent to all local agents, and it will be followed up by inspectors from the Ministry of Health and the Health Authority in Abu Dhabi and Dubai, who will monitor the extent of pharmacies’ commitment to implementing the new price list, Strict penalties shall be imposed on violators.
Yesterday, the Ministry of Health launched the new drug pricing system at the state level, which unifies the prices of imported drugs in US dollars, and reduces drug prices.
Al-Amiri said that “a profit margin of 15% has been set on the prices of the medicine once it reaches the agents in the local ports,” pointing out that the decision will prevent the smuggling of medicines from neighboring Gulf countries through some travelers.
tamper prevention
innovative drugs The representative of the Pharmaceutical Research and Manufacturers Association in the Gulf Region "Farmage", Yaqoub Haddad, said that the UAE has a prominent position at the level of global competitiveness in attracting investments in the pharmaceutical industries, especially innovative drugs that are manufactured in the country, which reflects the developments in the UAE pharmaceutical industry market. And the position it has reached to become a regional center for distribution as well. He added that the decision to reduce the prices of medicines will undoubtedly contribute to preventing a rise in the prices of high-cost medicines, after reducing the profit margin for these pharmaceutical brands at the lowest possible profit margin, as well as encouraging investment in the pharmaceutical sector. save medicine The Assistant Undersecretary of the Ministry of Health for Medical Practices and Licensing, Dr. Amin Al-Amiri, confirmed that the state aims, through the new drug price system, to provide medicine at reasonable prices in pharmacies, by unifying the prices of medicines sold in them, through binding price lists, to which all members of the health care system are committed. In the country, as the previous regime for medicines relied on all foreign currencies, which was causing fluctuations in currency exchange and its repercussions on medicine locally. He added that in 2011, drug prices were reduced by 5 to 55%, and citizens and residents continued to complain about high drug prices. A team working to study the prices of medicines in Bahrain, Oman, Jordan and the UAE, and when applying the pricing in US dollars, we found that about 5,000 pharmaceutical brands are likely to increase from 1 to 44% due to the price differences. |
He stressed that the ministry does not accept any manipulation of drug prices, and coordination will be conducted with the Consumer Protection Department in the Ministry of Economy, to receive any complaints to consumers about this matter, adding that the ministry welcomes any comments by patients and consumers about drug prices.
He added that the Ministry of Health is keen not to affect investors in the pharmaceutical sector in the country, and will not allow the rights of patients to be infringed, and everyone should adapt to the new system in a manner that is commensurate with the interest of patients and investors alike.
Al-Amiri considered that the support provided by the ministry to pharmacies will increase for the smallest pharmacies that are more numerous, by allowing them to raise the profit margin by no more than 15%, indicating that some medicines do not exceed 6% discounts, adding that the ministry is working to prevent Shortage of medicines from the market.
Since last February, the Ministry of Health has started a system for reducing drug prices, which was approved by the Council of Ministers, and includes 6,632 medicinal types, with a reduction rate ranging between 1 and 40%, while the decision aims to reduce the burden on patients and provide medicines of various types and make them in It is accessible to everyone without exaggerating its prices, especially those who treat chronic diseases.
encourage investors
The Assistant Undersecretary of the Ministry of Health for Medical Practices and Licensing confirmed that the UAE continues to encourage investors in the pharmaceutical sector to increase their investments in the country, as the country serves as a starting point for the pharmaceutical industries in the region to neighboring markets and the world, as it includes central warehouses for medicines, noting that the pharmaceutical market It has witnessed a remarkable development in the last period, which contributed to the position occupied by the country in terms of global competitiveness and attracting investments in the field of innovative drugs.
He added that the state's strategy is based on providing government services at the highest level and upgrading them to international levels, appreciating the decision taken by the Cabinet headed by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, regarding the unification of the pricing of imported medicines for the sector. of the US dollar.
Al-Amiri indicated that there are complaints by citizens about the high prices of medicines and the difference in prices with other Gulf Cooperation Council countries, as some drug agents avoid importing a number of products priced in foreign currencies when a sharp rise in the exchange rate occurs, which caused the agent to lose, or interruption. These items are from the local market, which we have removed by standardizing profit margins.
price fluctuation
He added, "The fluctuation in the exchange rates of some currencies other than the dollar, which is linked to the dirham, affected the rise in the prices of medicines when they were recorded at specific times, and also caused price differences between local medicines and their counterparts in the Gulf Cooperation Council, and in the inability to unify the pricing in the Gulf due to different regulations. Pharmaceutical pricing, as well as fluctuation in exchange rates causes the GCC countries to be unable to form a unified and strong position when negotiating with international regional pharmaceutical companies regarding the unified pharmaceutical pricing.
He added that "the pharmaceutical market witnessed a development in the UAE, in a way that contributed to the position occupied by the state in global competitiveness, and attracted investments in the field of drugs and medicines," adding that the ministry "prevented pharmaceutical companies from increasing their prices on some prescriptions. In June of the year In 2011, the Ministry decided to reduce the prices of 565 pharmaceutical brands, while the Ministry meets with companies, institutions and suppliers more than five times annually to review prices.”
He considered that the UAE is the best country in the Middle East in terms of import and re-export in the field of medicines and drugs, while the pharmaceutical category is registered in a period not exceeding six months at the state level, adding that this «does not prevent the application of penalties for violators of suppliers».
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