Health ministry moves to stabilise rising drug prices

Pharmaceutical Materials The Drug Administration of Viet Nam (DAVN), under the Ministry of Health, will put a hold on requests to increase drug prices from 16 representatives of multinational pharmaceutical and import companies until June 30, 2008, as a measure to stabilise drug prices. "A key factor to controlling drug prices is to increase supplies to meet demands," stressed the head of DAVN, Truong Quoc Cuong. Provincial and city level People’s Committees nationwide also asked provincial health departments to stop adjusting prices for local drug manufacturing firms, and supervise the implementation of drug price controls in their provincial areas. The DAVN said it would strengthen drug registration activities on imported drugs to increase supplies and try to meet national market demands, with priority given to drugs that could help prevent acute diarrhoea epidemics, said Cuong. "The DAVN may allow parallel drug importing to limit monopolies that increase the price of some treatments. People will be encouraged to use locally-made drugs through the mass media and public awareness," added Cuong. DAVN recently forecast an adjustment of pharmaceutical prices in Viet Nam for May due to inflation, in addition to the recent increase in the price of materials for drug manufacturing. "The price of drugs may increase in May, especially antibiotics, with the increase in material and production cost," Cuong said. The DAVN also said it would strengthen controlling prices on imported drugs and drug supplies for hospitals, making public the winners of drug price bids for hospitals. Pham Thi Phuong, a pharmacist at Khanh Phuong chemist’s shop on Van Cao street, said that there was a slight increase in prices, including antibiotics. While the prices of locally-made drugs remained relatively unchanged, the price of imported drugs has increased the most, especially for pain-killers and medications treating high blood pressure. "People have had to deal with price hikes on everything since the beginning of this year. The increase of drug prices and other essential goods like rice and gas are big challenges for people, especially the poor," said, Nguyen Thi Hai a Hanoian housewife. According to statistics by the General Department of Viet Nam Customs, materials for manufacturing antibiotics imported from India have all shot up. Ampicilin compact increased 14.38 per cent, Amoxicillin increased 11.84 per cent and Cephalexin increased 15.54 per cent in April.