Government to push ahead with formula for fairer medicine prices - Deguara

Health Minister Louis Deguara told Parliament yesterday that the government was commited to ensuring that consumer prices for medicines were fair and just, "with or without agreement with stakeholders."

Speaking during a debate on amendments to the Medicines Act, the minister said that following the setting up of the Medicines Authority, the government had achieved its aim of ensuring that all medicines were of a high standard.

However more remained to be done for consumer prices to be fair. This was something which the government wanted to achieve with the stakeholders of the sector but with or without such agreement, the government was determined to see a system that ensured that the local prices of medicines were fair.

It was a process which was far from easy. In making comparisons with prices in other countries one needed to consider different scenarios, such as market size and conditions, VAT and other charges and the fact that many medicines in Malta were imported.

Dr Deguara said that while some medicines in Malta were sold at below the average price in Europe, in most cases prices were on the high side.

An exercise was being conducted by the ministries responsible for health, competitiveness and finance to establish a basket of prices and ensure that local prices were fair. Ideally a formula would be worked out with all the stakeholders, but the time had come for this system to be introduced, even without agreement with everybody.

Dr Deguara said this did not mean that prices would not rise. Abroad, prices rose by some 10-12 per cent annually and Malta was not immune to this process.

The minister said the government viewed medical services as a social service and the Prime Minister had guaranteed, when speaking two weeks ago, that medical care would remain free of charge.

Furthermore agreement in principle had been reached with the Chamber of Pharmacists and the GRTU for the introduction of the Pharmacy of Your Choice Scheme. The finer details of the scheme still had to be worked out, but the plan was for the scheme to be introduced in three months' time initially as a pilot project in the areas currently served by Gzira and Mosta health centres. As a result, those eligible for medicines from the government would be able to collect them from any pharmacy without charge.

Dr Deguara said the Gzira health centre, serving the region from Pembroke to Msida, was selected because it served an area having a high concentration of elderly people and the health centre could hardly keep up with demand. Mosta, on the other hand, covered a wide area, from Mellieha down to Mosta and Naxxar.

Dr Deguara said the procurement and distribution of medicines to the pharmacies would remain in the government's hands, at least for the time being, although he did not exclude private sector involvement some time in the future.

The minister said pharmacists and pharmacy technicians in government employ would continue to have an important role particularly in the ward pharmacy service in government hospitals.

There was no doubt, however, that the new scheme would be very beneficial to patients. It would make the collection of medicines far more convenient, and there would be more time for patient-pharmacist contact.

In his comments on the Bill, Dr Deguara said its objective was to transpose new EU requirements into national legislations.

The Bill introduced many new definitions, of which one of the most important was the distinction being made between herbal and other medicines.

The Bill provided that the licensing authority may delegate any of its functions to the Medicines Authority to order to give the authority greater flexibility in its operations. The authority was also being given greater powers to inspect premises, seize samples, seize and examine documents and subsequently report on the findings. The holder of a marketing authorisation for a medical product would also be required to furnish proof of controls carried out on the medicinal product.

Dr Deguara said provisions on the suspension, revocation or changes to market authorisation were being amended in line with EU directives.

The Bill included new provisions on the definition and requirements of homeopathic medicinal products.

Dr Deguara said nothing in this law shall affect the powers of the authority as regards the setting of prices for medicinal products or their inclusion in national health insurance schemes. Nor shall the act affect the application of any law prohibiting or restricting the sale, supply, or use of medicinal products such as contraceptives and abortifacients

In his speech Dr Deguara said the setting up of the Medicines Authority four years ago had been a success and its high standards had been recognised abroad, in the EU and even beyond, such as in Canada. As a result, certificates of good manufacturing practice issued in Malta were being recognised oversees, including Canada. The audit by Health Canada had been particularly tough and Malta had ended up achieving high praise.

It was no coincidence, therefore, that Malta had become an investment destination for the pharmaceutical industry. This sector currently employed some 600 people and investment of Lm20 million in this sector alone was expected next year.

Following the recognition given by the various authorities abroad, Malta was now in the process of joining the Pharmaceutical Inspection Cooperation Scheme and a positive evaluation was expected in the near future.

Dr Deguara referred to criticism from a number of quarters about the unavailability of certain medicines in Malta. He said the Medicines Authority at all times wanted to ensure that medicines were of the proper standard and carried the required certificates. Although some medicines were no longer to be found on shop shelves, they had been replaced by equivalent or better medicines.

There was also a situation where some agents decided to withdraw certain medicinals because of low market demand in a situation where a large number of medicines having the same qualities were available. However there were no cases where medicines were withdrawn without a proper substitute being available.

Dr Deguara said that following claims that prices had gone up because of registration fees, the fees were cut back drastically. The number of medicines available in Malta had since increased and no one could claim that registration fees were a barrier to imports.

The minister also referred to Mater Dei Hospital. He said that following the recent heavy rainfall a quantity of soil used for landscaping had shifted and blocked culverts, causing some flooding in sections of the building. Repairs, he said, would be borne by the contractor, but this was no catastrophe. He also wanted to assure everyone that no medical equipment was damaged.

Dr Deguara said the opening of the hospital on June 29 was a further guarantee that the government would continue to give priority to health services.

The rest of the sitting will be reported tomorrow.