Pharmacies probed for price-fixing
The Namibian Competition Commission (NaCC) has launched an investigation into alleged price-fixing by the Pharmaceutical Society of Namibia (PSN) and about 200 registered pharmacies in the country.
The commission said in a statement yesterday it was still gathering all the relevant evidence and recently served notice to the PSN and the registered pharmacies of its investigation.
This was to afford them the opportunity to make representations within 30 working days to the commission.
“The commission will at the conclusion of its investigation, depending on the evidence uncovered, make a determination regarding whether or not the conduct of the PSN and the registered pharmacies amounts to prohibited price-fixing as envisaged in terms of the Competition Act,” it said.
The NaCC added the investigation is based on allegations that the PSN, a voluntary association of pharmacies, has in place a rule that requires chemists to impose a uniform 50% markup on medicines.
In light of this, the commission says PSN strictly enforces the 50% markup and warns pharmacies of possible sanctions for purportedly transgressing ethical rules and making themselves guilty of touting if they deviate from the markup.
Pharmacies that previously deviated from the 50% markup were subjected to PSN investigations and disciplinary proceedings.
“When prices are fixed by competitor pharmacies, consumers have no choice but to pay the fixed price and (this) reduces pressure on pharmacies to reduce the cost of medicines. The aforementioned can result in unjustified and increased consumer cost for medicines and ultimately reduces access to affordable healthcare,” the NaCC statement said.
Cornelius Weyulu, the registrar of the Health Professions Councils of Namibia (HPCNA), was not available for comment.
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The commission said in a statement yesterday it was still gathering all the relevant evidence and recently served notice to the PSN and the registered pharmacies of its investigation.
This was to afford them the opportunity to make representations within 30 working days to the commission.
“The commission will at the conclusion of its investigation, depending on the evidence uncovered, make a determination regarding whether or not the conduct of the PSN and the registered pharmacies amounts to prohibited price-fixing as envisaged in terms of the Competition Act,” it said.
The NaCC added the investigation is based on allegations that the PSN, a voluntary association of pharmacies, has in place a rule that requires chemists to impose a uniform 50% markup on medicines.
In light of this, the commission says PSN strictly enforces the 50% markup and warns pharmacies of possible sanctions for purportedly transgressing ethical rules and making themselves guilty of touting if they deviate from the markup.
Pharmacies that previously deviated from the 50% markup were subjected to PSN investigations and disciplinary proceedings.
“When prices are fixed by competitor pharmacies, consumers have no choice but to pay the fixed price and (this) reduces pressure on pharmacies to reduce the cost of medicines. The aforementioned can result in unjustified and increased consumer cost for medicines and ultimately reduces access to affordable healthcare,” the NaCC statement said.
Cornelius Weyulu, the registrar of the Health Professions Councils of Namibia (HPCNA), was not available for comment.
STAFF REPORTER
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