DISPENSING LICENCE

1
DISPENSING LICENCE

• Have 4 providers for the course
• 1. Health Science Academy
• 2. Intec College
• 3. Medunsa
• 4. S Buys Training Academy

2
DISPENSING LICENCE

• Have 6250 applications
• 944 processed
• 625 granted
• 319 pending

3
MEDICINE PRICES REGULATION

• Widely used in most developed countries
• At least 28 countries have regulated
• Canada, EU member states, Australia, New
  Zealand, UK
• Pharmaceutical products in South Africa can be
  30 higher than in countries like Australia.

4
MEDICINE PRICES REGULATION

• First draft published on 16 January 2004 for
  3months comment period
• 94 comments were received over a period of 17
  days 8 March 2004 to 13 April 2004
• Final draft promulgated on 30 April 2004, to
  commence on 2 May 2004
• Phased implementation over 90 days.

5
How do these countries regulate medicine prices?

• Government sets the
• ex-manufacturer price
• ex-wholesaler price
• dispensing fees
• Governments use a range of strategies to control
  price through the supply chain.

6
How were the regulations developed

• The regulations were drafted after consideration
  of
• the successes and failures of the various pricing
  strategies used internationally
• research into the South Africa pharmaceutical
  market
• Applicability of the various strategies in the SA
  environment.

7
International Price Comparisons

• A comparison of 121 products sold in SA with the
  prices in Australia suggests that prices in SA
  are on average about 30 higher.
• Of the 121 products used in the comparison 81
  products were actually higher in price.

8
Supply chain costs

• International price comparison in the field of
  pharmaceuticals is subject to many pitfalls, and
  retail prices, in particular, are often a distant
  relation to manufacturers selling price.
• Import duties, taxes, wholesale markups, both
  formal and informal, can double the price of a
  drug between manufacturer and consumer.
• (WHO Secretariat 2001, p. 11)

9
How Does the Pharmacy Margin in SA (20.6)
Compare Internationally?