An extraordinary medicine price increase could add R1bn to medical schemes’ costs in 2027, after schemes submitted their budgets. The Health Department announced the additional 2.88% single exit price (SEP) adjustment on 30 September, effective from 1 October. It cited cost pressures for pharmaceutical manufacturers, including geopolitical tensions. The adjustment follows an earlier 1.47% increase in 2026. Although annual increases…
Tag: Medicine Prices
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Single Exit Price to Rise 2.88% as Industry Warns of Shortages
The single exit price for medicines will rise 2.88% from October. The industry warns rising input costs are straining medicine supply. The single exit price (SEP) of medicines and scheduled substances will rise 2.88% from 1 October. This is the second adjustment this year. South Africa’s pharmaceutical industry warns that rising input costs are squeezing medicine supply and triggering shortages.…
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Local Pharmaceutical Manufacturing Row Deepens
The Department of Health defended its medicine procurement policies after an industry body blamed government tender practices for thousands of job losses. These job losses occurred among South African pharmaceutical manufacturers. The dispute highlights increasing tension between government efforts to support local pharmaceutical manufacturing and the need to secure affordable medicines. However, the Department of Health also needs to secure…
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Generic Drug Tariffs Could Raise US Medicine Costs
US President Donald Trump has announced steep tariffs on imported generic medicines. The move is designed to encourage pharmaceutical manufacturers to relocate production to the United States. Trump said generic medicines would remain tariff-free for two years from 1 August 2026. A 100% tariff would then apply for one year from August 2028. This would increase to 200% from August…
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Trade Tariffs and Their Impact on Pharmaceuticals
The pharmaceutical industry is bracing for a significant financial blow. Analysts forecast costs of between $13 billion and $19 billion following a new transatlantic trade deal. This deal will subject branded medicines to a hefty 15% tariff. Officials confirmed the landmark trade agreement between the European Union and the United States on Sunday. It marks the end of the historic…