Wave Of Drug Price Reductions To Be Enacted
BMI View: State intervention in drug pricing is set to become more heavy-handed and frequent as the GCC region attempts to establish unified drug pricing over the next five years. Despite these measures, the region's burden of disease, relative wealth and healthcare infrastructure will make it an attractive region for pharmaceutical companies.
In recent months, the UAE Health Ministry has launched a number of initiatives in conjunction with pharmaceutical companies to institute price reductions after discovering that prices in the UAE are considerably higher than in neighbours Jordan, Oman and Saudi Arabia.
In January 2014, the Ministry of Health ordered the reduction in price of 14 drugs used in diabetes care, which was part of a wave of price cuts on almost 205 medicines. Diabetes medicines saw their prices slashed by almost 83%. The Ministry of Health first announced a reduction in the cost of drugs in June 2011 when it slashed the prices of 565 medicines by 55%.
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