What is Pharmaceutical?
pharmaceutical, a substance used in the diagnosis, treatment, or prevention of disease and for restoring, correcting, or modifying organic functions. (See also pharmaceutical industry.)
Pharmaceutical Prices In South Africa
The single exit price (SEP) mechanism in South Africa lists the maximum price that a medicine can be charged. Dispensers may charge an additional dispensing fee depending on the price of the medicine. The Medicines and Related Substances Act allows for the following charges (excl VAT):
- Where the SEP is less than R109.56, the maximum dispensing fee is R14.50 + 46.0% of the SEP.
- Where the SEP is less than R292.25, the maximum dispensing fee is R27.75 + 33.0% of the SEP.
- Where the SEP is less than R1022.94, the maximum dispensing fee is R79.00 + 15.0% of the SEP.
- Otherwise, the maximum dispensing fee is R182.00 + 5.0% of the SEP.
The prices listed in this database represent the maximum price that you should be paying for your medicines (incl VAT). Note that these prices do not apply to dispensing practitioners who have a separate dispensing fee.
Why are pharmacy prices so different?
A number of factors play into how pharmacies price their drugs. This can include their business costs (overhead), profit margins, and prices charged by pharmaceutical companies. Those prices are proprietary information, which means they’re usually kept confidential.
Do prescriptions cost the same at all pharmacies?
Drug prices vary by the pharmacy for a number of reasons. One of the simplest ways to explain it is that different Pharmacy Benefit Managers PBMs (the companies that negotiate prices between pharmacies and drug manufacturers) have negotiated different prices with different pharmacies.