The Ministry of Health of the United Arab Emirates (UAE) has rejected a demand by drug agents to increase profit margins on some medicines by 14 percent, local newspaper Khaleej Times reported on Saturday.

No further hikes in prices of medicines will be introduced, Humaid Mohammed Al Shamsi, Assistant Under-Secretary for Pharmacy Supplies of the ministry, was quoted as saying.

"Prices of medicines will remain as they are. No changes will be introduced as yet. Pegged against (U.S.) dollar and euro, our current prices are reasonable and in line with international drug prices," Al Shamsi said.

Some drug agents in the country have earlier asked the Ministry of Health to increase the 4.3 dirhams (1.17 U.S. dollars) import exchange rate of medicines for euros fixed by the ministry to 4.9 dirhams, which is the market rate, arguing that existing prices do not cover costs and expenses of pharmacies.

Al Shamsi said the ministry will conduct a comprehensive study in cooperation with Dubai Chamber of Commerce and Industry to evaluate the status of pharmacies in the country, focusing on profit margin, costs, purchase and sale of drugs.

"No decision will be taken in this respect unless we evaluate inflation rate and the drug prices in comparison to GCC (Gulf Cooperation Council) markets," he added.

UAE Ministry of Health cut down prices of drugs by 15 percent in 2004, and further slashed prices by about 20 percent in 2005 on profit margins of both distributors and pharmacies. (1 U.S. dollar = 3.67 dirhams)

Source: Xinhua