Gov’t Implements Measures to Ensure Affordable European-Quality Medicines

The government has introduced measures to ensure that European-quality medicines are available at affordable prices in the country. 

These measures involve the direct procurement of medicines from pharmaceutical firms. This initiative addresses the challenges residents face in obtaining prescribed medicines at affordable prices while ensuring product quality from the manufacturing stage. This move is significant, as previous administrations have neglected the issue.

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According to the Maldives Food and Drug Authority (MFDA), despite the quality of the products, medicines were not imported directly from pharmaceutical companies. This practice resulted in a 15% increase in import costs compared to global prices and a 70% increase compared to regional market prices.

To alleviate the difficulties associated with medicine importation and improve residents’ living standards, the Ministry of Finance has entered into agreements with the United Nations Development Programme (UNDP). Under this bulk procurement agreement, UNDP will provide the medicines, collect them in Copenhagen, Denmark, and send them to their respective destinations, including the Maldives. The medicines will then be distributed to residents through the State Trading Organisation (STO).

Aasandha Company Limited, the universal health insurance scheme of the Maldives, has revealed that 65% of its budget is spent on acquiring medicines, constituting the majority of its expenses. Currently, over 14,000 brands are included in the national medicines list. Following the introduction of affordable European-quality medicines, the government is projected to save up to USD 32 million from the state budget. 

The pricing structure set by the government, which includes retail benefits, will enable STO and other private pharmacies to operate profitably. Medicines will be available for both wholesale and retail through STO.