/ 20 December 2004

Supreme Court rules on medicine prices

The Pharmaceutical Society of South Africa welcomed a Supreme Court of Appeal judgement on Monday that set aside government medicine-pricing regulations.

”What the judgement means in effect is that the pricing regulations are no longer in operation,” spokesperson Lorraine Osman said.

”We believe that the Department of Health will need to revisit the regulations, and we are offering whatever help we can.

”What is needed is the creation of an effective partnership to promptly finalise a set of regulations that are in line with the principles of a transparent pricing system and an appropriate dispensing fee.”

The court earlier granted leave to, and simultaneously upheld the appeals of the society, New Clicks and six other entities that own pharmacies against a Cape High Court judgement dismissing their application for the scrapping of the regulations.

The regulations control the factory exit price of medicines and restrict pharmacists to a maximum dispensing fee.

The appeal court found that the fixed dispensing fees are inappropriate as they fail to consider the viability of the dispensing industry. It also found that regulations relating to a single exit price introduced a price-control mechanism not envisaged by the Medicines and Related Substances Act.

New Clicks, which owns 86 pharmacies, was not immediately available for comment.

The Health Ministry said it will react later on Monday.

Said Charity Bhengu, acting spokesperson for Minister of Health Manto Tshabalala-Msimang: ”Before I can respond, I need to consult with our attorneys … who are still busy studying the judgement delivered earlier today.”

Just before noon on Monday, she said the ministry ”would respond in full within two hours”.

She said the attorneys are ”still trying to make a decision around the judgement”. — Sapa