After powdered milk, medicine seems to be in the government’s sights. The ministry of Trade has once again been in the limelight since minister Rajesh Jeetah, announced his intention to reduce the mark-up on medicines sold in the private sector from 35% to 15%. Following a violent reaction from pharmacists, who even threatened to close down in protest against this measure, time is now for dialogue between them and the state.

Pharmacists have submitted proposals that should allow them to reduce their prices while remaining competitive. The main solution would be that the government accepts to subsidise some products. This solution, at a cost of about Rs 100 million, would not be to the detriment of the 225 pharmacists or consumers… Only to the State’s coffers!

The pharmacists argue that the sector is already facing difficulties. In his budget speech last year, the former minister of Finance, Pravind Jugnauth, had reduced the mark-up on trademark medicines from 45% to 35%. They consider that a drastic reduction of the pharmacists’ margin would lead to the “end of the business in Mauritius.” A study by De Chazal du Mée in 1995 revealed that state-controlled prices on medicines would inevitably lead to the closing of many pharmacies.

In fact, pharmacists agree with the State that medicines are very expensive. “People have to know why medicines are so expensive. The exchange rate and the export price of laboratories where we buy medicines have an important impact on the price,” explains the pharmacists’ representative, Ravin Gaya.

<B>As for powdered milk, consumers especially the most vulnerable ones - might be the losers of the government’s good intentions. Many milk trademarks have disappeared from the shelves.</B>

In such a context, only generic drugs would help reduce prices in pharmacies. The consumption of such drugs should thus be favoured as they can cost up to 50% less than trademark medicines. The great majority of companies import such drugs but consumers seem to have a bad perception of the products and snub them since they believe that they are of lower quality. This perception is exacerbated by the behaviour of a large number of State doctors who give trademark drugs to their patients in complicated cases – to be on the safe side.

Moreover, their job is even more difficult as the private sector is only a complementary service to hospitals. Almost 60% of Mauritians get medicines for free from hospitals. For the moment, generic drugs cannot be the only solution, as consumers still prefer to buy products they know. “The patient has to be given the possibility to buy the medicine he/she wants, we can’t impose a generic drug.”

Although discussions have started with the profession, the government seems convinced that its decision is the best one. The prime minister, Navin Ramgoolam, was very blunt in a press conference on the matter: “There is no justification for prices practised in pharmacies. As for milk, we will take firm action. The most vulnerable people are the ones suffering from this situation. We can reduce prices significantly.”

But, although they do not deny that medicines are expensive, pharmacists say they demand the guarantee that their business will remain competitive. They already fear that suppliers will stop importing medicines.

As for powdered milk, consumers – especially the most vulnerable ones – might be the losers of the government’s good intentions. A large number of milk trademarks can hardly be found on supermarkets’ shelves and some people have already lost their jobs in milk-packing factories…

We can only hope that the government’s zeal to change people’s lives will not be detrimental at the end of the day. Discussions should lead to concrete actions for the benefit of all.