The pharmaceutical industry in South Africa (sa) is threatening to shut up shop unless the country's government rethinks its new drug policy. The policy has been in place since January 2004. It controls the incremental rise in prices at different stages after a drug leaves the factory. The industry argues that all the entities are being tarred with the same brush, and that every manufacturer does not indulge in such practices.
The new regulation slashes the costs of drugs by as much as 70 per cent. The proposed policy stipulates that there should be a single exit price, not higher than 50 per cent of the manufacturers' net price. This figure is arbitrary, contend drug industry representatives.
Paul Stewart of Boehringer Ingelheim, a multinational drug-maker which provides sa with aids drug nevirapine, says: "The regulations would hamper investments." While lowering prices of the drug would cost the industry us $624,119, it is likely that healthcare organisations would try to make up the deficit by increasing costs of hospitalisation and non-medical items.
We are a voice to you; you have been a support to us. Together we build journalism that is independent, credible and fearless. You can further help us by making a donation. This will mean a lot for our ability to bring you news, perspectives and analysis from the ground so that we can make change together.
.png)
Comments are moderated and will be published only after the site moderator’s approval. Please use a genuine email ID and provide your name. Selected comments may also be used in the ‘Letters’ section of the Down To Earth print edition.