(MENAFN- Muscat Daily) Muscat- The Ministry of Health (MoH) has issued a decision that will set the medicine prices in Oman with a profit of 45 per cent in addition to the Cost, Insurance and Freight (CIF). Amending Article 11 of the Ministerial Decision 86/2000 regarding the registration of drug companies, their products and pricing, the current decision 74/2017 was issued on April 16 by H E Dr Ahmed bin Mohammed bin Obaid al Saeedi, Minister of Health.
The decision stated, 'The pricing of the medicines that are sold to the public are set according to price of the Cost, Insurance and Freight (CIF), which is set by the technical committee. A profit percentage of (45 per cent) is also added to the price and is divided between the agent/wholesaler (19 per cent) and the pharmacy/retailer (26 per cent).
The decision comes into effect fromJune 1, 2017. The decision further stated that all those provisions that violate this decision stand null and void.
According to pharmacies, the earlier profit percentage was 55. With the change, medicine prices controlled by MoH, will come down by ten per cent.
The ministry in November 2015 had issued a similar decision (144/2015) amending Article 11 of the Ministerial Decision 86/2000 regarding the registration of drug companies, their products and pricing.
The decision 144/2015 had set the profit margin to 43 per cent for drugs that cost less than RO20, 39 per cent for drugs that cost between RO20 and RO50, and 35 per cent for drugs that cost more than RO50. The agent's profit margin in all these cases was fixed at 15 per cent with the remainder went to the distributing pharmacy.
But the ministry never implemented it as the decision was postponed twice, first in January 2016, when decision 144/2015 was to be implemented and the second time in June 2016 indefinitely.
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