SOUTH AFRICA REPORTS FLAT PRODUCER DRUG PRICE GROWTH

Official statistics indicate that manufacturer prices for pharmaceuticals produced in South Africa rose 0.7% in June 2005, compared to the previous month. Export prices were also flat in June, but were 15.6% lower year-on-year, despite currency appreciation in recent months.

Since 2002, South Africa has implemented a series of controversial drug pricing reforms and changes to the Medicines Act. Local sources report that the reform's first phase led to a 19% fall in retail drug prices between January and August 2004. Meanwhile, the government has launched tenders for a new compulsory medical insurance scheme for roughly 450,000 public sector workers.