Health Minister Aaron Motsoaledi has gazetted an increase in the single exit price for medicines and scheduled substances, which the pharmaceutical industry says is “pitifully low” and will have a devastating impact on small manufacturers, in particular. Business Day reports that the Pharmaceutical Task Group, which represents all the formalised trade associations and covers about 95% of the market, plans to take up the 1.26% increase with the minister in a bid for him to use his discretion to decide on an increase that is higher than that generated by the formula used.
Aspen Pharmaceutical senior executive Stavros Nicolaou said that while the industry agreed that the increase was based on the formula, the minister had discretion to make decisions outside of it. In the long term, the industry wants to have the formula restructured so it adequately reflected market forces. …..more