Cheaper medicine from November 1

A number of branded medicines will drop in price by as much as 18.5 per cent from November 1, The Times has learnt.

Brands include household names like Augmentin, which will go down by up to 10.5 per cent, and Zovirax which has dropped in price by 6.9 per cent.

Price reductions have so far been introduced by some local suppliers of medicines but others are expected to follow suit shortly.

However, as pharmacies will not be receiving refunds on the difference in price from suppliers, stock that has already been purchased will be sold at existing prices. It is only after this stock is exhausted that the new prices will come into effect.

Sources also said that agents were doing their best to secure lower prices from their suppliers. The drop in price follows the agreement reached last month between the government and medicine agents to import hundreds of products that have not been available in pharmacies for the past two years.

Importers had pledged that medicine prices, which soared in recent months, would be cut within two months as the new system will ensure that a variety of products will be available for consumers.

The government intends to introduce what is known as a Maximum Reference Price Mechanism, which will mean that those licensed to import medicines will only be permitted to market a particular product if that medicine is not sold higher than the approved price.

Any attempt to sell medicine at more than the reference price must be justified in a transparent manner.

Sources said this mechanism will seek to establish a fair price by taking account of the prices charged in other EU member states and working out an average price. Countries in northern Europe tend to be more expensive than southern nations like Spain and Cyprus.

The Maximum Reference Price Mechanism to be adopted in Malta is currently being fine tuned and will involve consultation with the stakeholders. But the intention is to put it in place "as early as possible".