Apocalyptic research-collage on drug prices (video)

It is noted that a copy has already been received by the Auditor General and her staff. The Report includes 292 pages and 2 more multi-page appendices. The research confirms everything that came to light through Sigma about the distorted pricing system. Indicatively, it is stated that, in terms of ranking countries based on retail price, Cyprus holds the scepter of accuracy behind Sweden.

According to the research:

In the process, the system, due to a series of misguided actions, mutated into a labyrinthine, difficult and inefficient pricing mechanism, without any possibility of control.

The prices of medicines in Cyprus are among the highest among the EU-27 member states.

Prices have reached such high levels that any change in pricing will result in significant price reductions.

The data on the cost of medicines are an indisputable evidence of the need to streamline and normalize the institutional framework governing pricing.

The above are based on specific scary facts and figures.

COMPARISON OF OFFER PRICE WITH WHOLESALE PRICE OF CYPRUS MANUFACTURING MEDICINES
PRICE DIFFERENCE
1,042% - 4,810%

GENERAL IMPORTED MEDICINES
PRICE DIFFERENCE
111% - 635%

ORIGINAL MEDICINES WITHOUT PATENT DIFFERENT PRICE

110% - 788%

ORIGINAL DRUGS WITH PATENT

PRICE DIFFERENCE
12% - 310%

If you are wondering about the price of the pharmacy, ie the retail one, add another 42%.

37% the pharmacist's profit plus 5% VAT. It is also noted that according to the research, there is a claim of the manufacturers that 398 medicines which are of Cypriot origin are not sold in private pharmacies. However, the research claims that not only are they sold in the private sector, but the turnover for 2011 reached 10 million 881 thousand euros with profit margins reaching up to 5000%.

In terms of country ranking, based on the factory price, Cyprus ranks 7th in the EU.

In terms of wholesale price ranking, it ranks 5th, and finally, in terms of retail price ranking, Cyprus holds the scepter of accuracy behind Sweden.

Among other things, the suggestions for immediate corrective actions are the following:

Immediate revocation of the decision to "lock" the expensive prices in Greece in 2009 and immediate use of the current prices.
Immediate ministerial decision to reduce the prices of original drugs by 30% upon expiration of the patent.
Immediate ministerial decision to reduce the prices of generic drugs, with the expiration of the patent.
Institutionalizing the way of monitoring the expiration of the protection period of the original drugs through patents.
Immediate implementation of computerized pricing system.
Change in the composition of the Drug Price Control Committee.
Immediate creation of an administrative structure of the Drug Pricing Sector.
Immediate transfer of officials who have been working for years in the Drug Defining Sector.

The scenarios presented by the research

- The price comparison should be done taking into account the ex-factory price of the reference countries, and not the wholesale price. In this way, the state is given the opportunity to determine and exercise control over the percentage of wholesale sales in Cyprus, something that is not possible with the existing system.

- It was found that with all the scenarios that have been developed, an overall reduction in the prices of medicines is achieved, which ranges from 10% to 40%.

The research team, which worked hard and within 50 days prepared the study, consists of 5 people.

The Minister of Health, Stavros Mallas, stated that the Ministry is in intensive internal consultation with the involved services, studying the various models, there will be a discussion with the drug dealers and pharmacists and within the summer final decisions are expected and the pricing policy will change. drugs.

Source: SigmaTV