By YOURI KEMP

Tribune Business Reporter

ykemp@tribunemedia.net

The Bahamas Pharmaceutical Association’s (BPA) president yesterday revealed the industry has been “blindsided” by the Government’s imposition of price-controlled mark-ups that could force smaller operators to close. 

Shantia McBride told Tribune Business that here members do not support the Davis administration’s move as it bids to counter soaring inflation and a cost of living crisis, and the Association plans to “reach out to the Government respectfully” in a bid to achieve a “compromise” on the matter. 

“There has been no consultation with our stakeholders on any level, because there’s a Pharmacy Council. If they wished for recommendations to have been made, they could have come straight forward to the Association. They could have come to me and I would have directed them to our representatives on this price control,” she said. 

“Not every pharmacy is a large-scale pharmacy. We have some small pharmacies around and therefore these price controls across the board can’t work.” 

The Price Control (Drugs) (Amendment) Regulations 2022, which are due to take effect on Monday, October 17, and remain in place for at least three months until January 17, 2023 - although they could be extended for longer - impose price-controlled mark-ups ranging from 15 percent to 18 percent on pharmaceutical wholesalers. For retailers, the range is from 35 percent to 40 percent.

The medicines covered include vaccines, anti-diabetic drugs, decongestants, laxatives, contraceptives, antacids, anti-hypertension medicines, cough preparations, cardiovascular agents and serums.

Ms McBride added: “The Association is willing to compromise for the benefit of consumers because we’re consumers, too. But when you now bring on this change to us, in light of an increase in Bahamas Power & Light rates, and you also have now wages increase, we can’t forecast how that scale is going to affect us with all the changes that are going on. 

“So by bringing the Association to the table, we can find some type of compromise or some type of agreement across the board for consumers and for us to also stay open, provide our services and help everyone within this six [three] months if they say it is six months, but to tell us the same time the public was told and we have the weekend to changes our prices, it’s not doable.” 

“This seems to be a government policy to not consult with pharmacies because the last administration did the same thing when it was COVID-19,” Ms McBride continued. “We have tried to give advice and give our recommendations, and it was unheard. We have great ideas for how our patients can benefit.” 

Medicines were once VAT free under the former administration, but the Davis administration reimposed the 10 percent levy from New Year’s Day this year. “They could have given us some timeline in order to change our rates and change our prices. We’re going to revisit this again, so we should sit down one time and forecast everything in the long run as it relates to increases from freight costs and the drastic scarcity of medication,” Ms McBride lamented.