New Clicks joins battle over SA drug price rules

JOHANNESBURG – South African health and beauty products retailer New Clicks has launched legal proceedings against the government’s health minister in an effort to scrap new drug price-cutting regulations, the firm said yesterday.

“The group believes the pricing regulations are financially and legally unsustainable and would cause irreparable damage to the retail pharmacy and the pharmaceutical supply chain,” a statement said. Last month South Africa launched a revised plan to slash drugs costs for consumers, cutting prices on individual products instead of a blanket 50 per cent reduction.The changes, which are estimated will save consumers up to three billion rand a year, seek to scrap discounts and incentives given by drug companies to pharmacies and distributors and pass the savings to consumers.A spokeswoman for the ministry it had received notification of the case.”We received the papers yesterday. We will obviously be looking at them before we make any further comment and taking legal advice. You never take any court case lightly,” said Jo-Anne Collinge. -Nampa-ReutersLast month South Africa launched a revised plan to slash drugs costs for consumers, cutting prices on individual products instead of a blanket 50 per cent reduction.The changes, which are estimated will save consumers up to three billion rand a year, seek to scrap discounts and incentives given by drug companies to pharmacies and distributors and pass the savings to consumers.A spokeswoman for the ministry it had received notification of the case.”We received the papers yesterday. We will obviously be looking at them before we make any further comment and taking legal advice. You never take any court case lightly,” said Jo-Anne Collinge. -Nampa-Reuters