Statistical Service urged to capture all medicines in inflation basket
The Ghana Statistical Service (GSS) has been advised to include all medicines in the basket of items used for the calculation of Consumer Price Index (CPI).
An adjusted CPI will display a better inflation rate for planning and strategy for the pharmaceutical sector.
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William Addo, president of Pharmaceuticals Importers and wholesalers Association (PIWA), made the call at a news conference in Accra last Thursday.
He was speaking on behalf of three major pharmaceutical groups which resolved to stop the supply of drugs and medications to all health facilities across the country and the National Health Insurance Authority (NHIA) on credit basis with immediate effect.
The entities were the Ghana National Chamber of Pharmacy, the Pharmaceutical Manufacturers Association of Ghana (PMAG) and the PIWA.
The call comes at a time when there are doubts as to the real rate of inflation in the country considering the level at which the prices of goods and services are rising in the country.
Some advocates believe that the basket of goods used for the computation must reflect more of goods which prices change more frequently rather than those that are more static and which inclusion in the inflation basket only goes to reduce the rate of inflation in the country.
The meeting brought together players in the pharmaceutical industry to highlight the impact of the current economic situation on pharmaceutical businesses and the remedy to save the industry.
Inflation
Mr Addo said the current inflation rate of 37.2 per cent has brought about increase in the cost of goods and services by the same quantum.
“The cost of essential accessories and other inputs needed for pharmaceutical operations therefore has been affected.
“Electricity and water remain indispensable in the conduct of pharmaceutical businesses and hence their increase tend to affect the cost of doing business,” he said.
Prices of medicines
When the paper visited the Okaishie drug store lane, a hub of imported medicines in Accra, it was observed that many medicines have doubled in prices in just nine months.
Compared to January this year, medicines for hypertensive patients such as a full pack of Exforge had increased from GH₵ 166 to GH₵299; Crestor for high cholesterol control up from GH₵110 to GH₵210; Norvasc; GH₵320 to GH₵597; Lipitor GH₵ 240 to GH₵447; Atacand GH₵196 to GH₵368.
Full pack of Galvus, an anti diabetic drug has also increased from GH₵222 to GH₵402; anti malaria drug, Coartem is now GH₵88 as against the GH₵45 in January.
Zithromax, an antibacterial drug has increased from GH₵165 to GH₵294, while anti fungal drug, Diflucan has increased from GH₵104 to GH₵200, Lyrica, a medicine for nerve pain has also increased from GH₵220 to GH₵444.
Impact on businesses
In an interview with Graphic Business, Mr Addo said the increment in prices of goods especially medicines is not helpful as it affects the delivery of proper healthcare in the country.
“Prices of medicines have increased over 100 per cent since January. If as a country our intention is to ensure access to medication, then there is a problem because the prices are too high and patients, through no fault of theirs are unable to buy,” he said.
He said the country is dependent on about 70 per cent of pharmaceutical imports as only 30 per cent is produced locally.
Expressing worry about the current challenges being faced by businesses in the country, he said PIWA is absorbing a lot of cost. If not, the prices of many medicines particularly, the off-the-counter- drugs, would have been very unaffordable.”
“As an association we are doing our best to control the prices of medicines but there is a point to which we can go to ensure that the health of the country is not jeopardised.
“We are worried about the rate at which prices of medicines are moving but it is not our intention to increase prices. We are in business; we have loans and workers to pay,” he added.
Sales drop
The Head of Sales and Market for East Cantoment Pharmacy (ECP), Ebenezer Holm Graves, said as a country, we all need healthcare everyday, however, we jeopardise the future if care is not taken to control prices of drugs.
“If we don’t have the correct drugs in the system people will smuggle in fake drugs due to shortage of proper drugs and our healthcare will face a big challenge.
“So the health of the country really depends on this and we need to give it a holistic response,” he said.