JEDDAH, 14 January 2008 — The price of imported medicines in the Kingdom will this year see a 20 to 30 percent rise due to the appreciation of the currencies of countries from which medicines are imported.
Several types of medicines are already selling at increased prices. The antibiotic Tavanic 500mg, which had been selling at SR63, is now sold at SR71. The price of Augmentin 100mg, another commonly prescribed antibiotic, rose from SR92 to SR97.7 and that of Amarel 3mg, a diabetes medicine, jumped from SR47 to SR52.
Dr. Muhyuddin Nasri, an executive at a Jeddah company involved in importing medicines and pharmaceuticals, said the increase could be attributed to a drop in the value of the US dollar, and a corresponding rise in the price of raw materials used in manufacturing medicines.
Having fixed prices for medicines is difficult in a fluctuating market, Nasri said referring to calls for official intervention to regulate the prices.
The Ministry of Health issued a circular to pharmaceutical companies saying that, starting Feb. 1, a new mechanism will be in place to periodically — every two or three months — review the prices of imported and locally-manufactured medicines. At present, the ministry only reviews prices of medicines at long intervals.
The statement said that the Ministry of Health would put an end to indiscriminate price increases and had prepared a list of 2,300 medicines, whose prices will be reduced from February.
Pharmacist Dr. Ahmad Al-Mahmadi believes that the Ministry of Health is heading in the right direction and that medicines, especially those used for sex-related problems, generate 100 percent profit.
“Pharmaceutical companies have to reduce the profit margin on medicines used to treat chronic diseases, such as diabetes, blood pressure and heart disease,” he said.
