Yesterday more than 400 local pharmacies resumed selling cheap
over-the-counter medicines such as glycerine enemas, after
residents complained about their removal from shelves in
Shanghai.
Pharmacies stopped selling low-cost medicines because they made
too little profit.
But after an outcry from residents, the government and pharmacy
authorities have moved to support low-cost medicine producers.
Shen Yaogang, an official at Shanghai Guoda Pharmacy Franchise
Co, said all its outlets are now encouraged to purchase and sell
low-cost medicines, giving more choices to customers and supporting
cheap production.
"But growing costs and competition require all stores to improve
their profits," he said.
For example, the price of glycerine enemas produced by Shanghai
Winguide Huangpu Pharmacy Co is 2.7 yuan (36 US cents). Stores gain
only 0.1 yuan in profit when they sell each enema.
Dr Liu Yuyang from Fudan University's Children's Hospital and a
member of the local government advisory body said the government
should introduce favorable policies and subsidies to encourage the
production and sale of low-cost medicine.
"A reasonable profit margin is the most effective support to
producers and drugstores," she said.
Officials from Shanghai Health Bureau said it has agreed with
the city's pricing authority to allow 97 low-cost but good
medicines to be purchased by local hospitals without setting the
maximum price.
If all goes well, another 34 cheap medicines will be added to
the list soon, the bureau said.
Shanghai Hualian Pharmaceutical Co, the nation's main and
Shanghai's only manufacturer of cyclophosphamide, which fights
malignant tumors such as leukemia and lymph cancer, stopped making
the drug for two years after financial losses. The government has
now set its maximum price of eight yuan.
(Shanghai Daily November 14, 2007)