Drug distributors rely on November inventory until the price gets recalculated

Drug distributors are currently using the inventory purchased in November, after they recalculated the price of drugs, as companies would incur great losses due to the significant depreciation of the leu against the Euro, distributors claim.

"The inventories we have are nearly exhausted, but we think they might last until the end of January, when the validity delay of the decree on the recalculation of drug prices using the exchange rate of 3,63 lei for one euro, over the old rate 3,33 lei for one Euro, is set to expire. If the new minister does not keep its promises to set an acceptable price for drugs, we will start over", Daniel Popescu, representative of the Romanian Association of Drug Distributors and Importers stated for NewsIn (ADMR).

The Minister of Health, Ion Bazac, repeatedly claimed that after the health budget for 2009 will be determined, he will try to solve the issue of distributors by applying a new method for the setting of drug prices in lei, which would no longer rely on the exchange rate.

According to the ADIMR representative, drug distributors are to meet with Ministry of Health representatives by the end of January.

Following the numerous rounds of negotiation with the former Health Minister, Eugen Nicolăescu, in November, distributors persuaded the Ministry to recalculate the prices of free and subsidized drugs, at the rate of 3,63 lei for one Euro.

The new rate for the calculation of prices was valid initially until December 31st 2008, but it was later extended until January 31st, due to the appointment of a new team in the Ministry of Health.

At the beginning of October, drug distributors, ceased deliveries to all the drug stores in the country, because the exchange rate used for the calculation of drug prices had not been updated.

Distributors complained that prices were last been updated in April 2007, even though, according to the law, prices were supposed to be recalculated every three months. At the end of June, they estimated losses of over 20 million Euros as they were forced to sell drugs at an exchange rate over one year old, meaning 3,33 lei for one Euro.