Over 6,600 medicines will become cheaper

The prices of 6,619 imported drugs will be reduced by one to 40 per cent. The new system aims to unify pricing procedures for drugs imported by the private sector and limit price fluctuations caused by foreign currency exchange prices.

It will also lead to price adjustments with other Gulf Cooperation Council (GCC) countries and encourage investment in the pharmaceutical sector in the country.

The health ministry has been given a timeframe of three months to issue a price list for drugs as per the new system and also to put in place new inspection and control procedures.

Shaikh Mohammed chairs the Cabinet meeting in Abu Dhabi on Sunday. — Wam

The decision to implement the new system was taken during a UAE Cabinet meeting held on Sunday at the Presidential Palace in Abu Dhabi. The meeting was chaired by His Highness Shaikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai.

Shaikh Mohammed said food and medicine sectors were of extreme importance. “It is essential to make medicines affordable for all…,” he tweeted. He added that providing reasonably-priced medications to patients in the UAE reflects positively on the healthcare sector.

“The new system will lead to price adjustments with other GCC countries. Investors in this sector will also be taken into consideration,” he said in another tweet.

The new system has been introduced after a series of research studies and meetings with several concerned and proactive parties in the sector, with the goal of setting up a comprehensive system to standardise the prices for medications imported by the private sector, modifying the margin of profit for the agent and the pharmacy , thus putting an end to the fluctuation in medicine prices caused by changes in the values of foreign currencies.

A Ministry of Health official said details of the system and on which medicines it is applicable will be announced within a few days.

“The new system is in the interest of patients and investors,” Dr Amin Al Amiri told Khaleej Times. The new mechanism will also profit private pharmacies and agents of global pharmaceutical companies accredited in the UAE, he added.

Dr Al Amiri, who is Assistant Undersecretary for Medical Practices and Licensing at the ministry said: “The standardisation of prices for drugs imported by the private sector in US dollars will also contribute to provision of medicines to all community members at reasonable prices.”

He said a draft of the new system had been approved by Abdul Rahman Mohammed Al Owais, Minister of Culture, Youth and Community Development, and Acting Minister of Health and passed through the Council of Ministers earlier.

The Cabinet also approved the 2013 budget for Emirates Transport, aiming to develop the financial strength of the company and increase its market value, in addition to guaranteeing the quality of its services. It is expected that the income of Emirates Transport will reach Dh1.4 billion in 2013 in accordance with its working budget, an increase of seven per cent, while net profit is expected to reach Dh110 million, an increase of 13 per cent.

The budget draft also included a plan for the workforce, which is expected to reach 13,152 employees by the end of this year, an increase of 211 employees over last year.

The Cabinet approved the final account statement of the National Bureau of Statistics for the fiscal year ending December 31, 2011, with revenues of Dh42,050,468.

The Federal National Council’s request to discuss the development of sports clubs and youth centres were also approved during the meeting. The Cabinet also approved signing a double taxation avoidance agreement on income with Hungary.

(With inputs from Wam)

asmaalizain@khaleejtimes.com