1. Portfolio Committee on Health Medicine Prices Regulations 17 February 2004 Dr HZ Zokufa

2. 2 Legal Provision Medicine Act, 1997 and 2002 Section 18A Bonusing - No person shall supply any medicine according to a bonus system, rebate system or any other incentive scheme Section 18B Sampling of medicines - No person shall sample any medicine

3. 3 Legal Provision Section 22G Pricing Committee (1) The Minister shall appoint for a period not exceeding five years such persons as he or she may deem fit to be members of a committee to be known as the pricing committee (2) The Minister may, on the recommendation of the pricing committee, make regulations - (a) on the introduction of a transparent pricing system for all medicines and schedule substances sold in the Republic

4. 4 Legal Provision Section 22G Pricing Committee (2) (b) on an appropriate dispensing fee to be charged by a pharmacist or by a person licensed in terms of Section 22C(1)(a) (C) on an appropriate fee to be charged by wholesalers or distributors or any other person selling Schedule 0 medicine

5. 5 Legal Provision Section 22G Pricing Committee (3) (a) The transparent pricing system contemplated in subsection (2)(a) shall include a single exit price which shall be published as prescribed, and such price shall be the only price at which manufacturers shall sell medicines and Scheduled substances to any person other than the State.

6. 6 Legal Provision Section 22G Pricing Committee (3) (b) No pharmacist or person licensed in terms of section 22(C) (1)(a) or a wholesaler or distributor shall sell a medicine at a price higher than the price contemplated in paragraph (a) (c) Paragraph (b) shall not be construed as preventing a pharmacist or person licensed in terms of this Act to charge a dispensing fee as contemplated in subsection(2) (b)

7. 7 Legal Provision Section 22G Pricing Committee (4) To the members of the pricing committee who are not in the full time employment of the State may be paid such remuneration and allowances as the Minister with the concurrence of the Minister of Finance, may determine.

8. 8 Pricing Committee Made up of 13 members Have had 8 meetings as from October 2003 Have looked at Manufacturer prices, Wholesaler and Distributor fees Dispensing fee and fee for retailers selling Schedule 0 medicines Recommends 27 regulations to be published for comment for 3 months Regulations must be finalized (promulgated) in April 2004 so that they take effect on 2 May 2004 when Section 18A also takes effect.