Medicine costs in UAE slashed by up to 60%

Drugs to treat chronic conditions such heart disease, hypertension and diabetes are among 192 medicines that will be slashed in price by up to 60 per cent from January 1.

It is the fourth wave of price cuts announced by the Ministry of Health in the past two years.

The reductions are part of efforts to make medicines – especially those for serious illnesses – more affordable.

“The price of medicines is one of the most controversial issues in the healthcare sector and reducing these prices is among the ministry’s main objectives, especially in light of unreasonable pricing strategies at drug companies and manufacturers,” said Dr Abdul Rahman Al Owais, the Minister of Health.

"But the drug industry has been and always will be a highly profitable commercial sector.

“Reducing drug prices is part of the ministry’s strategy that seeks to provide high-standard government services by developing the healthcare system and providing treatment to all segments of society.”

Dr Amin Al Amiri, an assistant undersecretary at the Ministry of Health, announced the price reduction in the cost of the drugs at a pharmaceutical meeting yesterday.

The ministry will release a list of all the medicines and their new prices on its website on Sunday.

Of the 192 drugs, 152 are medicines used for treatment of serious illnesses such as heart diseases, hypertension and diabetes.

The Ministry of Health first announced a reduction in drug costs in June 2011, when the prices of 565 medicines were cut by up to 55 per cent.

Further decreases were announced in November 2011, when the prices of 115 generic medicines were slashed by up to 35 per cent.

The biggest reduction came in June this year, when the prices of 6,632 medicines, including treatments for hypertension and heart failure, anti-depressants, anti-virals for HIV and asthma drugs were reduced by up to 40 per cent.

The cuts follow a review of the drug market by the ministry and two years of talks with pharmaceutical companies, who agreed to drop wholesale prices.

The review followed a study of the cost of medicines in the UAE compared with Lebanon, Bahrain, Oman, Saudi Arabia and Jordan.

It found that prices in the UAE were considerably higher, especially for drugs to treat chronic diseases.

Dr Yacoub Haddad, public affairs and policy director for the Middle East for healthcare leader MSD and a representative for PhRMAG (Pharmaceutical Research and Manufacturers Association Gulf), welcomed the changes.

"There's no doubt that the cost of health care is constantly on the rise," he said.

“Although expenditure on medicines accounts for only 10 per cent of the overall cost of treatment, we have carried out initiatives and procedures to ensure that patients will have access to our products at reasonable prices knowing that the cost of introducing a new drug could reach up to US$1.6 billion [Dh5.87bn] compared to only $500 million to $600m a few years ago.”

jbell@thenational.ae