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Section 18A of the Medicines and Related Substances Act
2004-05-05

The final pricing regulations were published 30 April 2004 in Government Gazette No. 26304 The regulations specify that wholesalers, distributors and retailers (community pharmacies) must, on 2 August 2004, sell medicines only in accordance with the provisions of the regulations.

The final pricing regulations were published 30 April 2004 in Government Gazette No. 26304 The regulations specify that wholesalers, distributors and retailers (community pharmacies) must, on 2 August 2004, sell medicines only in accordance with the provisions of the regulations.

For community pharmacies, these regulations specify that from 2 August 2004, schedule 0 medicines may be sold with the traditional mark up that is currently used. Schedule 1 and 2 substances sold over the counter, i.e. without a doctor's prescription, will be sold with a dispensing fee of 16%, capped at R16 when the single exit price (SEP) of a product is more than R100.

When sold on prescription, Schedule 1 to 6 medicines will be sold at a dispensing fee of 26%, capped at R26 when the SEP is more than R100. The SEP is inclusive of the distribution fee and exclusive of VAT.

The Pharmaceutical Society is deeply troubled about the impact that the proposed dispensing fee will have on community pharmacies when it comes into operation on 2 August 2004, and has sought legal advice in this regard.

The public must understand that if pharmacists now provide discounts or any other incentives, such as waiving medical schemes levies, they will be committing criminal offences.

Although prices may be unstable for a while, as old stock is sold and replaced with new stock, these changes can clean up the marketplace by making prices transparent and consistent, and ultimately reduce the price of medicines to consumers.

Furthermore, because it is now illegal for manufacturers and distributors to give discounts, community pharmacists are paying considerably more for medicines this week than they did last week. The Pharmaceutical Society trusts that this situation will be resolved in the near future, but understands that it is creating difficulties for pharmacists and consumers.

However, the savings that consumers will experience in the future may be considerable and can run into hundreds of rand for very expensive, lifesaving medicines. (source: PSSA newsletters 34 and 37)

Regulations Relating to the Transparent Pricing System for Medicines and Scheduled Substances

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