Pharmacies seek increase in medicine prices

MEDICINES are expected to cost more in Qatar due to a surging euro and an anticipated 5-10% hike by the regulating authority by October, industry sources said yesterday.

The cost of medicines produced in the European countries is expected to rise sharply as the common European currency touched five Qatari riyals to a euro yesterday.

The pharmacies contacted by Gulf Times said that they had already submitted requests to the Public Health authorities to review the prices in the context of a rapidly appreciating euro and the steep rise in infrastructure costs like rents and salaries.

According to the latest statistics from the General Secretariat for Development Planning (GSDP), prices of medicines and pharmaceutical products in Qatar have witnessed only a 1% increase though the country’s revised inflation rate stood at 13%.

“However, there will be considerable changes in the prices once the National Health Authority reviews the situation in wake of the changes in the values of major global currencies and the local inflation,” said a pharmacist in the Airport area.

“We are hoping for a price increase of 5%-10% on all European medicines,” he said.

An industry source said a request for price hike submitted by the importers was pending official sanction.

“After the summer vacation and the Ramadan, a decision in favour is expected by October,” the source said.

Germany, Belgium, Italy and France are some of the major drug producing countries and their medicines have a huge demand in pharmacies across Qatar. All these countries, being members of the European Union, trade in euros.

A distributor of European pharmaceutical products in the Najma area said: “Lately it has become difficult for us to maintain our distribution network and sales outlets because of the steep rise in rent and living expenses and our profits seem to be less and less.”

He said: “Although we sell cheaper generic version of medicines from India and the GCC, the medicines produced in Europe make up almost 40% of our stock. The locals mostly buy the European products.”

Augmentin (a broad-spectrum penicillin antibiotic) made in the United Kingdom costs QR120 for a packet of 20. Cheaper generic versions of the same drug are made in other places and they are available for almost half the price of the original.

The manager of a pharmacy on the Rayyan Road said: “The practice by a few major pharmaceutical companies to produce medicines in some Arab countries to cut costs is commendable. It will give customers the choice of buying almost the same drug (produced in the West) at cheaper rates.”