Health minister Aaron Motsoaledi has called for comment on possible changes to the way his advisory committee on medicines determines price increases for the private sector. The pharmaceutical industry has long complained about what it says is an unpredictable outcome when the minister announces the annual price hike for private sector medicine sales, and the impact this has on planning. Private sector medicine prices are tightly controlled by the health department, and companies are usually only allowed one price increase a year, known as the single exit price (SEP) adjustment. The SEP is the regulated price at which drug makers must sell their medicines to all their customers, regardless of the volumes purchased. Medical schemes also have a keen interest in the SEP adjustment, as medicines constitute a significant portion of their spending. In a notice published in March in the Government Gazette, the pricing committee said it had noted stakeholder feedback and was considering a ...

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