PETALING JAYA (Feb 12, 2013): The government is mulling a medicines pricing mechanism in a move that is expected to curb unethical practices related to prices of pharmaceuticals.

It is learnt that the Health Ministry is working to find a pricing structure that is feasible, taking into account aspects of affordability for people, as well as a win-win situation between stakeholders including manufacturers, importers, suppliers and retailers.

The ministry's Pharmaceutical Services Division senior director Datuk Eisah Abdul Rahman told theSun that discussions have already been held with stakeholders.

"A workshop on medicines pricing and reimbursement which involved representatives from the pharmaceutical industry, practitioners and consumers was organised recently to discuss a feasible drug-pricing structure," she said.

On Jan 2, theSun had reported that some unscrupulous private doctors are making profits by selling to middlemen drugs they had purchased from pharmaceutical companies at far cheaper price. The middlemen then resell these to pharmacies at higher prices, with the additional cost passed on to unwary consumers.

Community pharmacists have especially complained that such an unethical practice exists as drug makers exercise selective and discriminatory pricing structures as well as inducements to "favoured" health practitioners.

They have also complained that many drug companies offer certain drugs only to doctors, which further worsens the problem.

Eisah said such activities are regulated under the purview of the Malaysia Competition Commission, as there are currently no provisions for this matter within the division's enforceable regulations.

"However, we have a National Medicines Policy through which strategies have been identified to ensure that medicines are affordable and accessible to the public.

"We also have guidelines on good governance in medicines, which are applicable not only to the public service but also to the private sector involved in the sale and supply of medicines," she said.

The division conducts price monitoring activities annually to determine the price changes and structure along the supply chain in both public and private sectors.

"The objective of the monitoring is to establish a ceiling price for drugs," she said.

A draft of the National Medicines Policy review, conducted in October 2012, is also expected to be presented to the ministry's top management this month.

The review contains proposals for several significant improvements with regard to making medicines affordable to all Malaysians.

It was agreed by all stakeholders that a National Pricing Reference for essential medicines be developed, encompassing the principles of equity, affordability and transparency.

The reference price will be the ceiling price or the recommended retail price of the product to be sold to consumers.

The information will then be accessible to the public through a price database, labelling of Recommended Retail Price (RRP) on the product packages and compulsory itemised billing at all dispensing channels.

Meanwhile, pharmacists have put pressure on drug companies to end discriminatory pricing for their products and make available drugs to all health practitioners without bias.

The Malaysian Pharmaceutical Society in a statement recently called on companies to practise fair prices.

"All drug companies have to stop the discriminatory prices of all medicinal products and all these products should be made available to all categories of health professionals at the same nett prices," its president Datuk Nancy Ho said.

She added that medicines are essentials, and should never be "horse-traded like pusher-drugs to the whims and fancies of 'drug-peddlers' at dark street corners."

However, she commended the Health Ministry for its concern on the matter and its efforts to engage stakeholders.

"Unfortunately, not many have responded positively although one multinational drug company has stopped the discriminatory practice even before the matter was openly discussed.

"This is an exemplary move and we hope to see this initiative completed with official recommended selling price for better understanding of the cost-over-benefit consideration for prescribers, dispensers and patients alike," she said.

It is to be noted that some countries like the Philippines have fixed maximum prices for drugs to ensure the retail pricing is affordable to their citizens. Consequently, some of the drugs are sold at lower prices than in Malaysia.

source:MPS