Drug prices to be pegged to dollar

ABU DHABI - The Ministry of Health is likely to peg the prices of medicine to the US dollar from early next year, in a move aimed at stabilising prices in the local markets, according to officials.

By A Staff Reporter

Published: Mon 1 Aug 2005, 11:15 PM

Last updated: Thu 2 Apr 2015, 7:08 PM

The ministry will fix the US dollar rate to the UAE dirham in accordance with market value, and then price all European, American and Arab manufactured medicines on that principle. Officials said the reduction of prices announced by the Pharmacy and Supply Sector at the Ministry of Health on July 29 was the last. The new price structure, which will be applied from September 15, is included in CDs that have to be obtained by pharmacies. The prices of some 3,500 medicines will be reduced by about seven per cent, while the prices of 2,200 medicines will remain the same, officials said. The price structure included a reduction in the margin of profit from 55 per cent to 44 per cent and the amendment of foreign exchange rates against the UAE dirham.

Meanwhile, a report in the Arabic daily Al Khaleej on Monday said medicine companies and agents were waiting for payments to the tune of Dh240 million from the Ministry of Health for medicines supplied to the ministry.

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