1. Adhoc Committee on Health 22 June 2004 1 DISPENSING LICENCE  Have 4 providers for the course 1. Health Science Academy 2. Intec College 3. Medunsa 4. S Buys Training Academy

2. Adhoc Committee on Health 22 June 2004 2 DISPENSING LICENCE  Have 6250 applications  944 processed  625 granted  319 pending

3. Adhoc Committee on Health 22 June 2004 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. Adhoc Committee on Health 22 June 2004 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. Adhoc Committee on Health 22 June 2004 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. Adhoc Committee on Health 22 June 2004 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. Adhoc Committee on Health 22 June 2004 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. Adhoc Committee on Health 22 June 2004 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 manufacturer’s 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. Adhoc Committee on Health 22 June 2004 9 How Does the Pharmacy Margin in SA (20.6%) Compare Internationally ?