New cap on Single Exit Price welcomed

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CAPE TOWN – The announcement by Health Minister Zweli Mkhize, that the Single Exit Price (SEP) of medicines and scheduled substances may be adjusted to a maximum of 4.53percent of the SEP of medicines and their related pack sizes, has been welcomed by the industry.

Mkhize said in a statement that this adjustment to a maximum of 4.53 percent was for the SEP of medicines and their related pack sizes that was available as at December 20, regardless of how that SEP was arrived at for the 2019 cycle.

He said applications for adjustments of the SEP could be submitted for the first time in 2020 from January 10, 2020, and by no later than February 28, 2020.

Pharmaceutical Task Group (PTG), which represents more than 90 percent of the South African pharmaceutical industry in value terms, welcomed the “timeous” announcement of the SEP adjustment for 2020 of 4.53 percent, compared with 3.78percent for 2019 and 1.2 percent for 2018.

PTG chairperson Stavros Nicolaou said in an interview on Tuesday that the adjustment represented a fair balance between inflationary increases in the businesses on manufacturers, which although exceed 5percent, continued to provide an accessible and sustainable supply of medicines to consumers, patients and funders.

Source: iol.co.za