/ 26 October 2004

Now Shoprite Checkers has pharmacies, too

Grocers Shoprite Checkers have launched a chain of discount pharmacies called MediRite, joining the growing number of retailers adding pharmacies to their portfolio, the group confirmed on Tuesday.

The group successfully applied to the Department of Health for a pharmacy licence, and in its application said it plans to offer competitive prices.

”During their application, they said they planned to be competitive — we are watching now to see what their prices will be,” said Anban Pillay, the department’s director of pharmaceutical evaluation.

Shoprite Checkers confirmed that it has launched a number of MediRite pharmacies throughout the country and that it will not charge administration fees.

The group joins retailers Pick ‘n Pay and Clicks, which also recently ventured into the pharmacy business in spite of concerns over legislation that caps the dispensing fee at R26.

The Department of Health’s Dr Humphrey Zokufa said companies such as Shoprite and Dischem have realised that lower prices and not levying administration fees has increased customer volumes.

These companies are also attracting fed-up clients of the pharmacies levying the administration fees.

”Medicine is not a cash cow,” said Zokufa, who is chief director of pharmaceutical policy and planning. ”I would like to see that model spread to underserviced areas.”

He said the department apologises to people for the difficulties currently experienced in its quest to make medicines cheaper, but ”we hope the situation will settle itself”.

He said that even he has ”shopped around” and now uses a Pick ‘n Pay pharmacy.

However, although studies have shown a 19% decrease in prices at manufacturing level, it is not yet clear if this is being passed on to the consumer.

At the same time, the department has embarked on a questionnaire campaign to establish the effects of the new pricing regulations.

”Pharmacists claim to be closing down, so we need to understand why,” said Pillay. ”We need to understand exactly what the problem is and what is taking them out of the business — is it the lower-schedule medicines, is it the high-end medicines?”

The questionnaires will be distributed by the Pharmacy Council to members of the United South Pharmacies and to the Concerned Pharmacists’ Group. When 300 completed questionnaires have been received, the department will be able to make a statistical analysis, he explained.

No deadline has been set but it has agreed that as soon as it has 300 replies, it will be in a position to start forming a picture. — Sapa