Thursday, Sep 29, 2011
Gulf News
Manama: Qatars Supreme Council of Health (SCH) is capping prices of all imported medicines and other pharmaceutical products apparently in response to price hikes imposed by a leading wholesaler over the past few months.
The SCHs decision to impose a 20 per cent cap on the permissible price increase is expected to bring down prices of several widely sold formulations, Qatari daily The Peninsula reported on Tuesday.
Under the move, dealers are also required to ensure that prices of medicines are clearly printed on packages so that the retailers are not left in doubt. Wholesalers are allowed to hike prices by a maximum of 10 per cent. Retailers too are entitled to a maximum price increase of 10 per cent.
Any increase exceeding a total 20 of per cent will have to be revoked, SCH sources said. A SCH statement announcing the decision, quoted by the Qatar News Agency (QNA), however, did not provide details on how old and new prices would be calculated.
Public outcry
Prices of various medicines have shot up by nearly 50 per cent after the government lifted control over pricing, triggering a public outcry, with many nationals and expatriates calling on the government to intervene. The decision to impose a ceiling on price hikes has been taken by the Permanent Licensing Committee (PLC) at SCH after it concluded that the price increase was unjustifiable, according to the SCH statement. The law allows the authorities to impose a ceiling on prices of medicines and other pharmaceutical products as well as the profits of the companies dealing in such products.
Liberalised imports
A set of new laws implemented recently had lifted government controls over pricing, liberalised imports and ended exclusive dealerships of medicines. Although the SCH has singled out one distributor in its decision, the ceiling will apparently apply to all distributors, the daily said.
Enquiries in the market have revealed that a leading company that accounts for a 30 per cent share of medicines distributed in the market was mainly responsible for the price hike. Other distributors have also hiked their prices, but not to the extent done by the company in question.
Retailers say that wholesalers who were responsible for the price hike were also its major beneficiaries.
By Habib Toumi, Bureau Chief
Gulf News 2011. All rights reserved.
