A number of owners of private pharmacies and hospitals are threatening to close down their pharmacies if the Food and Drug Authorzty (FDA) enforces its recent decision to ban drug companies from giving discounts on medicine in exchange for purchase orders. Experts in the medicines sector argue that this situation could lead to a crisis in the market and that it could see the creation of attempts to circumvent the law. However, the FDA claims that consumers will benefit from cheaper drugs. In a circular signed by Dr. Saleh Bin Abdullah Bawazir, Deputy President of the Food and Drug Authority for Drug Affairs and distributed to private pharmacies and hospitals, the FDA said that it has come to its attention that pharmaceutical companies give discounts on drugs. This, it stated, is illegal under the pharmaceutical and facilities regulations which sets prices, including what profits can be made on the cost price of medicines. The FDA called for any violations to be reported. Muhammad Yusuf Al-Ani, Chairman of the Health Committee at the Taif Chamber of Commerce and Industry (TCCI), said the new regulations on the sale and purchase process does not refer to this matter. He said that the decision was taken after the transfer of the authority, over the pharmaceutical industry, from the Ministry of Health to the FDA. Al-Ani claimed that because of the new pricing policy some important medicines have already disappeared from the market including Isordil 5 mg, which is taken under the tongue in case of angina; Inderal 10 mg, which regulates the heartbeat; and hormone ampoules given for the treatment of infertility. He said doctors would find great difficulty in prescribing appropriate medicines for patients because the drugs are no longer available. Al-Ani expects that 70 percent of the pharmaceutical companies will abide by the decision while the remaining will circumvent the law. He said consumers are unlikely to be affected in the short term and may even get a benefit from a drop in prices. However, many drugs were likely to disappear, he claimed. He said that he expects about 2,000 private pharmacies to withdraw from the market in the short term because of insufficient profits. In time, many more will close down, he argued. About rumors that the FDA has withdrawn its decision, Hajid Bin Muhammad Hajid, Director of Medical Licenses for the Drug Sector, said this was not the case. He said pharmaceutical companies will not suffer because of the decision, but pharmacies will be affected by the loss of high discounts. He stressed that the objective of the decision is to reduce the high prices of medicines because consumers deserve low prices. He dismissed fears about the disappearance of some medicines from the market. He said the FDA has met with owners of pharmacies in Jeddah. He described the meeting as fruitful and that the FDA will consider their comments.
