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SOUTH AFRICAN DRUG PRICE RULES ON HOLD

January 3, 2007

South Africa's new drug price regulations, which were supposed to go into effect this week, have been put on hold in wake of a long-running legal battle between pharmacies and the government, reports the Johannesburg-based Business Day.

The Pharmacy Stakeholders Forum (PSF) told the newspaper that the health department has agreed to suspend implementing the new pharmacy dispensing fees pending the outcome of a legal challenge by the PSF.

The proposed new dispensing fees come nearly three years after government first announced amendments to the Medicines and Related Substances Control Amendment Act, according to the article in Business Day. The regulations ban incentives such as free samples, ensure the price of medicines is the same for all customers and limits the price increases pharmacists can add to the cost of drugs they sell.

While the PSF said it is satisfied with the agreement, an official with a retail chain that supplies pharmaceuticals in South Africa said the delay in implementing the price caps "only means that consumers will continue to pay higher prices for medicines," according to Business Day.