IMPORTS
Weak rand expected to push up prices of medicine
SA has a high incidence of noncommunicable diseases, and an increase in the prices of medicines could result in higher mortality rates
Since almost 90% of the active ingredients that go into the production of effective medicines are being imported, industry insiders say the weakened economy will soon have a negative effect on prices of medication. SA has a high incidence of noncommunicable diseases, and an increase in the prices of medicines could result in higher mortality rates. Ratings agencies S&P Global Ratings and Fitch have downgraded SA’s rating to junk status, with Fitch cutting the foreign and local currency ratings. CEO of the Innovative Pharmaceutical Association SA Dr Konji Sebati said the volatile and weak exchange rate, which was inflating the cost of imported raw materials, was of particular concern. "All pharmaceutical manufacturers are significantly affected by the deteriorating value of the rand, with a resultant increase in the cost of raw materials," said Sebati "Other local cost increases, such as wages and utilities, are also ahead of [the consumer price index] and causing great pressure on t...
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