Aasandha has announced that the bulk purchasing of European quality medications is expected to save the country MVR 300 million annually in medical expenses. This initiative follows an agreement with the United Nations Development Programme (UNDP) for the procurement of high-quality medicines, with the first shipment already received by State Trading Organization (STO).
The current shipment includes seven A-grade medications, alongside other related drugs, with an additional three medications expected to arrive in October. This initial batch alone is projected to save approximately MVR 10 million within a year, contributing significantly to the overall anticipated savings.
The medications included in the shipment are intended for a variety of treatments, including mental health issues and antibiotics. While the term “European quality medication” is used, the medications also originate from India, with assurances that they meet European quality standards by being sourced directly from manufacturers. Additionally, some medications have been imported from Greece and the United Kingdom.
European quality medications are manufactured in countries such as Bangladesh, Pakistan, and India. Despite the term, these medications are held to the rigorous quality standards accepted in Europe.
Currently, Aasandha sets the prices it will cover for prescription medicines based on market rates. Given that pharmacies in the Maldives are privately run, this often results in high expenditure on medications. Private pharmacies argue that the cost of good quality medication is elevated due to their inability to purchase directly from manufacturers.
To address these challenges, the Maldives has adopted a pooled procurement system, collaborating with other countries to purchase medications. This approach allows the Maldives to import the necessary amount of medication based on statistical needs, which has proven difficult under previous methods. Bulk procurement is expected to resolve these issues, ensuring the supply meets actual demand.
The government aims to ensure that all fundamental medications, currently totalling 400, are imported at European quality standards through STO. This system is designed to bring high-quality, expensive medications at a lower cost, providing significant savings. Although the goal is to save MVR 300 million annually, actual savings may vary from year to year.
Once STO begins importing these medications, private pharmacies will also be required to purchase from STO, with retail prices set to include a small profit margin. Prices are established for these medications, and while they may vary by brand, any additional charges beyond Aasandha’s coverage must be paid by customers. Private pharmacies are not permitted to increase the prices of these medications beyond the set rates.
Currently, over 1,600 types of medication are approved for import into the Maldives, as listed by the Maldives Food and Drug Authority (MFDA). All imported medications must adhere to MFDA regulations, including complete documentation. However, the small size of the Maldivian market often results in challenges in obtaining these documents from manufacturers.
This new bulk procurement policy aims to overcome such hurdles, ensuring the availability of high-quality medications while significantly reducing costs for the Maldives.
