After the 14th general election, it was normal for the new administration to go through all contracts awarded to companies by the previous government and decide whether it should be reviewed or remain status quo.

However, the situation is quite worrying when it comes to the concession of drugs to hospitals especially pharmacies. Until now the government has yet to make any announcement whether to extend or terminate Pharmaniaga Bhd as the concessionaire for distribution of drugs in the country.

For industry players, they understand the need for the government to make its assessment but until when do they have to wait? Time is at the essence because the healthcare industry is at stake.

The government’s delay in making a decision will not only affect the healthcare industry but the people at large.

It all started in mid-last year when a report appeared claiming Pharmaniaga as being the cause behind the price hike of drugs, therefore, increasing the cost of healthcare in the country.

While these particular parties are eager to play up the issue, they forget to check the fact that only 30% of pharmaceutical products supplied to MoH are made by Pharmaniaga.

The 30% involves almost 100 vendors with close to 800 pharmaceutical products under which storage and distribution managed by Pharmaniaga.

The remaining 70% is managed by the ministry under the open contract process, following all the strict guidelines provided by the MoF.

This was confirmed by Health Minister Dr. Dzulkefly Ahmad himself in a report.

So the perception that Pharmaniaga regulates the prices of pharmaceutical products by some is seen as a wild allegation. The company only focuses on the logistic aspects of pharmaceutical supply after all decisions are made by the ministry.

Since 7 years ago, the company achieved 98pc of the KPI set by the government and reduced delivery of drugs to pharmacies from 60 days to only 7 days in the Peninsula and 10 days in Sabah and Sarawak.

News source: mytwocents.asia