UAE Government Rejects 30 New Drugs on Price Factors

The health ministry of the United Arab Emirates (UAE) has refused to approve 30 new products on the grounds that the suggested pricing put forward by local drugmakers is excessive. The basis for the decision is that equivalent prices for the products in other Gulf Cooperation Council states, notably Saudi Arabia, are significantly lower.

The move marks a departure for the UAE, in that authorities are attempting to introduce a measure of restraint on drug prices in what is a considerably wealthy market, where there is a strong preference for the latest branded drugs. Nevertheless, officials are also reportedly discussing new criteria establishing generic treatments as at least 30 percent cheaper than innovator products.

Nevertheless, current market conditions in the UAE indicate that the generics segment's overall 5 percent market share is unlikely to increase substantially in the short term. The country's overall drug spending is set to reach around US$575mn at consumer prices by 2007.