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Drug prices in Oman may fall after new profit cap introduced

Oman Monday 24/April/2017 17:07 PM
By: Times News Service
Drug prices in Oman may fall after new profit cap introduced

Muscat: A 45 per cent profit cap on medicines introduced by the Ministry of Health may bring down prices of medicines at local drugstores.
According to a recent circular, the Ministry of Health (MOH) said that the profit margins of medicines cannot cross 45 percent. "The price of selling medicine shall be based on the price of the port of entry (CIF) as approved by the technical committee, plus a profit margin of 45 percent (19 percent to the agent/wholesaler/distributor and 26 percent to the pharmacy/retailer,” the circular said.
The circular was published in the official gazette on Sunday, which replaced Ministerial Decision number 74/2017.
Ministry officials say some pharmacy agents and retailers used to charge more than 45 percent of profit on medicines. “When compared to some of our neighbours, drug prices were higher in Oman, and this new cap may help in bringing down prices of medicine. This is a GCC wide initiative to standardise medicine prices,” an official said.