The government has implemented measures to ensure that European-quality medicines are available in the Maldives at affordable prices, in line with President Dr. Mohamed Muizzu's commitment.
The arrangements were made by the government to assure that the medicines are directly procured from pharmaceutical firms. The initiative aims to address the challenges residents face in obtaining the prescribed medicines at affordable prices, while ensuring the quality of the product from the manufacturing stage. The initiative is a noteworthy move, as it has been a neglected issue from the previous administrations.
According to the Maldives Food and Drug Authority (MFDA), regardless of the quality of the products, the medicines are not imported directly from the pharmaceutical companies. The practice resulted in a 15% increase in import costs compared to global prices and a 70% increase in relation to regional market prices.
In pursuit of alleviating the difficulties associated with medicine importation and enhancing the living standards of the residents, the Ministry of Finance has entered agreements with the United Nations Development Programme (UNDP). Under the bulk procurement, UNDP will provide the medicines and collect them in Copenhagen, Denmark, and send them to the respective destinations, including the Maldives. The medicines will be provided to the residents through 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 attaining medicine, 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.
This government decision is expected to significantly impact the regulation of medical drug prices, reduce the overall demand for dollars required for medical imports, and bolster the nation's healthcare system. Furthermore, it will ensure that medicine quality is maintained from the production phase through to consumer delivery.