Price declaration to manage drug prices
This is the content shared at the Workshop “Developing the domestic pharmaceutical market - Solutions from digital transformation” organized by Tuoi Tre Newspaper on October 19, in Hanoi. According to Mr. Chu Dang Trung - Head of the Legal Division - Integration, Ministry of Health, the main points in the draft amendments to the 2016 Pharmacy Law expected to be submitted to the National Assembly at the upcoming session have 5 new points.
The first is the institution of the entire special policy mechanism, specific to the COVID-19 period.
Second, promoting the development of the pharmaceutical industry is a breakthrough compared to the 2016 Pharmacy Law.
Third, diversify the system and methods of trading and distributing drugs and pharmaceutical ingredients.
Fourth, simplify administrative procedures on the order and procedures for granting drug circulation registration certificates; increase recognition and accreditation to create favorable conditions and increase proactiveness for businesses.
The fifth new point is to strictly manage drug prices to stabilize the drug market according to the provisions of the 2023 Price Law and ensure the specificity of the Pharmacy Law.
Mr. Chu Dang Trung said that one of the highlights of this draft law amendment is to strictly manage drug prices to stabilize the drug market according to the provisions of the 2023 Price Law and ensure the specificity of the Pharmacy Law.
Accordingly, the principle of drug price management must ensure compliance with market mechanisms, respect the right to self-determination and price competition of drug trading organizations and individuals according to legal regulations. Protect the legitimate rights of drug trading organizations and individuals, consumers and the State. In the draft revised Law on Pharmacy, the provision on "declaring drug prices before circulation" will be retained, and the term "declaring prices" will be changed to "publishing prices".
The expected price announcement applies to prescription drugs, applicable to manufacturing and importing establishments. The price declaration according to the Price Law applies to essential drugs, applicable to wholesale and retail establishments. The agency receiving price announcements is the Ministry of Health, and the price declaration is the Department of Health.
The goal of price announcement is to publicize prices on the Ministry of Health Electronic Information Portal, that is, to publicize expected prices as a basis for businesses to not exceed the prices announced by manufacturing and importing establishments.
"Regulate the maximum retail margin for drugs sold at drug retail establishments within the premises of public medical examination and treatment facilities," Mr. Trung informed.
Drug price management - businesses wait
Dr. Tran Thi Nhi Ha - Deputy Head of Petitions of the National Assembly Standing Committee - said that this is an extremely difficult issue and the content of the bill is very large. At the same time, it is also an issue that the public and businesses are eagerly waiting for.
Ms. Ha said that, if it is an announcement, the manufacturing and importing enterprises will announce the price of prescription drugs. Enterprises are not allowed to sell at a higher price than the manufacturing and importing enterprises announce.
This is a price management measure, but in the field of market competition, there will be businesses that will raise their opinions on why they cannot sell at a higher price. Because as businesses, they must be equal in terms of market competition. However, this is a measure that the Ministry of Health has put forward to be legalized and is a measure that inherits previous regulations, instead of declaring prices, it is implementing price announcement.
"Of course, after the law, there will be draft decrees and circulars, but the delegates' wish is that whatever can be included in the law should be included so that we have information on price announcement records... We also hope that the Ministry of Health will demonstrate its responsibility in state management of drug prices," said Ms. Ha.
Previously, with drug retail (pharmacy), there was no concept of declaring retail prices, but in the new bill, retail prices must be declared to local management agencies and prices must be posted on products.
