THE STAR : Mixed views over medicine prices, CEO FOMCA

Details: Category: FOMCA DI PENTAS MEDIA; Published: 01 November 2019; Created: 01 November 2019

KUALA LUMPUR: Fomca welcomed the move by the government to drop the sole concessionaire system for the distribution of drugs and medical supplies to the Health Ministry’s facilities.While it said consumers are expected to get cheaper supplies with the dismantling of the distribution monopoly held by Pharmaniaga, an international research and advocacy organisation said the prices are not likely to go down as Pharmaniaga does not determine the prices of the supplies.

Fomca CEO Datuk Paul Selvaraj (pic) said while the Health Ministry had denied claims of Pharmaniaga monopolising the supplies of drugs and explained that the concessionaire was only for handling the logistics and distribution for the ministry, the move from a single supplier of services to an open tender system was a positive move.“With open tender, prices are likely to go down as it is expected to have more competitors, ” he said.

Health Minister Datuk Seri Dr Dzulkefly Ahmad had announced that Pharmaniaga’s concession to distribute drugs and medical supplies for the ministry will end and there will be no concessionaire for logistics and distribution services any more.

Instead, an open tender system will be introduced, he said.Paul said the government should monitor the prices of medicines as they were quite high in Malaysia.“Whether encouraging the manufacturing of generics or greater competition or price controls, medicine has to be made accessible and affordable to people.“Big pharmaceutical companies are pushing back on these but the government should put the health of the people over the profits of pharmaceutical companies, ” he said.

Paul also urged the government to look at the Malaysia Competition Commission’s recommendations on lowering the prices of drug and medical supplies.International research and advocacy organisation Third World Network director Chee Yoke Ling said prices of drugs and medical supplies are not likely to go down because Pharmaniaga handles only the logistics and distribution of the supplies to the ministry’s facilities and does not determine the prices of the supplies.With Pharmaniaga, the ministry calls for a tender and decides on who wins the bid and when the contract is awarded, Pharmaniaga will liaise with suppliers to obtain the products and the contract payment is done through the company, she said.Negotiations with single supplier is also conducted by the ministry, she added.

“It’s unfortunate that the function and role of Pharmaniaga under the ministry’s concession for logistics and distribution continues to be misunderstood, ” she said.Chee said the concession holder has obligations to ensure medicines and other medical products are delivered to almost 2,500 hospitals and clinics throughout the country within seven working days in Peninsular Malaysia and 10 days in Sabah and Sarawak.“If a remote clinic needs even a small amount of medicine, Pharmaniaga has to deliver, ” she said.It should not compare the mark-up for the usual distribution services of other companies with the concession payment that covers a much bigger range of services, she added.Chee said that Pharmaniaga had to maintain several warehouses and almost all staff of Pharmaniaga Logistics were dedicated to the ministry’s concession.

“If the ministry had not privatised the Government Medical Stores, it would need to have hundreds of workers, warehouses, transport vehicles (including special refrigerated vehicles), ” she said.Pharmaniaga also developed an entire Pharmacy Information System for all government health facilities and the facilities only need to order through the system.