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B.P. 247

28 septembre 2005, 00:00

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Fair enough ?

Pharmaceuticals have always been a strictly controlled item, both in terms of registration for distribution and prices.

In 2004, the previous Minister of Finance, unilaterally and without any consultation with any parties concerned, reduced mark ups allowed to retail pharmacies to 22 % (from 27 %) and importers-distributors to 11 % (from 14 %). Further, he reduced an allowance for clearing and other local charges from 5 to 2 %.It is rumoured that your government is planning another review of mark up allowed on pharmaceuticals. Before you do so, I would like you to consider the following points. You state that medicines are unaffordable and are a monopoly. This is not quite so.

Today, we have available a wide variety of drugs from India, South Africa, Pakistan, Malaysia which are good products and very affordable. It is true that drugs from UK and Europe are generally pricier and we all know the main reason being strong European currencies. Even so, drugs from these countries are still cheaper than elsewhere because our margins are one of the lowest in this region, and also because we benefit from special export prices allocated to the African region.

The pharmaceutical trade is far from being a monopoly. Look around, Prime Minister, and see who are pharmacist owners today. Sons and daughters of the very ordinary Mauritians, who have risen from the rank after much hard work, sacrifice, and who now own their small businesses. Competition among them is strife and they are subject to increasing costs of running a business. They are still reeling from the effects of last years? decrease in mark ups (...). Beware, you may discourage people away from their businesses and allow those with strong backs to survive and to monopolize the profession. Exactly the opposite you wish to achieve, I am sure.

It is only fair that any decision your government will take (...) is taken after a proper study is effected. (...). It is a well known fact that pharmacies provide an easily accessible first port of call for advice on health matters and, as such, they take a considerable strain off the back of the public health sector.

In a free and fair society, a business is entitled to have a fair return on the resources employed, Prime Minister, and therefore, before you take any action, you should ensure that this is so in case of pharmacies.

Currently, a wide range of good pharmaceutical products are available in hospitals and these are provided freely to everybody who attend hospitals. Quite rightly so. Government imports more than 50 % in volume of the country?s requirements. It is therefore fair that you should allow the private market to regulate itself within the framework imposed by the Ministry of Health and Ministry of Commerce.

I understand that you wish to make medicines available to the needy and poor and vulnerable groups generally which we believe are already catered for by the present system. Allow us a few more suggestions :

  1. Encourage the prescription of generic drugs from India, Pakistan, South Africa, etc? A positive discrimination, as it is the case in France, may even be considered.

  2. Decentralise the free distribution of pharmaceutical products for hospitals to area health centres and dispensaries, and make them more accessible.

  3. Encourage people to save for healthcare, through insurance schemes , etc?

  4. Create an awareness that drugs dispensed in the public sector are quality pharmaceuticals.

Our market provides a number of competing products from all parts of the world. The industry is over supplied with pharmaceutical firms, and various government authorities control the trade through their regulations. So the public is more than adequately protected. Whatever decision your government wishes to take, you should do so in fairness to the profession with its various constraints and it should be based on facts. The pharmaceutical profession looks forward to your understanding.

K. GUNNESS S. VAWDA

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