Prices of essential drugs cut

DUBAI - The prices of essential drugs in the UAE have been reduced by up to 15 per cent to compete with the lowest priced medicines currently available in the region, according to a senior health official. Medicine prices were last fixed in the UAE five to 10 years ago.

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Asma Ali Zain

Published: Wed 2 Mar 2011, 1:01 AM

Last updated: Thu 2 Apr 2015, 7:41 AM

Prices of 209 new medicines registered by the UAE Ministry of Health over the past six months have already been reduced and the ministry is in negotiations with pharmaceutical firms from over 20 countries to further reduce prices, said the official on Tuesday. A total of 8,503 drugs are registered with the ministry.

Currently, a number of medicines in the UAE are among the highest priced in the region with differences ranging up to 100 per cent from its strongest competitor, Saudi Arabia. A snapshot done by Health Action International (HAI) in 2009 showed that patients in the UAE pay at least four times more for branded drugs as compared to the generic versions.

“Prices of certain medicines in the UAE may soon be lower than those available in Saudi Arabia that currently has the lowest prices in the region,” said Dr Amin Al Amiri, Assistant Undersecretary for Medical Practices and Licences at the ministry while talking to reporters on the sidelines of a pharmaceutical seminar.

He said the ministry’s Higher Committee for Drug Pricing and Registration was working to make medicines affordable to the common man, especially those suffering from chronic diseases. “Almost 80 per cent of patients buy medicines from private pharmacies at high prices,” said Al Amiri.

Admitting that prices of medicines in the country were among the highest in the region, Dr Amiri said that a price estimation study undertaken by the ministry in six countries — Saudi Arabia, Bahrain, Oman, Lebanon, Jordan and the UAE — pointed to the need to bring about changes in the pricing policies.

According to the new system, a proposed reduction in the customs insurance freight (CIF) prices will lead to price reduction instead of further cuts being levied on agents and pharmacies. At present, pharmacies are earning only six per cent profits after losing out 10 per cent commission to insurance companies.

Al Amiri told pharmaceutical representatives that once the compulsory insurance programme came into effect, companies would lose out to generic drugs. Industry representatives from PhrMAG, the Pharmaceutical Research and Manufacturers Association Gulf said that the impact of the price reductions could take over a year. “We hope to finish the negotiations with the ministry within a month though the actual impact will only be felt a bit later,” said Nidal Fakhoury, Regional Managing Director, Middle East for Merck Sharp and Dohme (MSD) who is also chairman of PhrMAG.

“The lowest we can go could be anywhere between five and 15 per cent,” he said adding that regional price comparisons were not possible since countries fixed mark ups differently.

The industry also called upon the ministry to commission research based studies that could attract knowledge based investments in the country.

asmaalizain@khaleejtimes.com

Asma Ali Zain

Published: Wed 2 Mar 2011, 1:01 AM

Last updated: Thu 2 Apr 2015, 7:41 AM

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