UAE to Study New Strategy for 'Affordable' Medicines

The United Arab Emirates' (UAE) General Authority for Health Services has issued a significant comment on generic medicines policy. Local news sources cite a senior official's claims that current private sector generics prices, at roughly five times those in the government healthcare sector, are insufficiently affordable for much of the population.

If the UAE authorities decide to act to increase public access to generic medicines, such a move could mark a step away from traditional policy, which overwhelmingly favours patented brand pharmaceuticals. However, a recent willingness to impose price controls to promote the share of generic medicines beyond the current 5% level could also now imply a change of mood.

Many low-cost drugmakers have recently complained that the historic dominance of the multinationals and the UAE's strong preference for branded drugs constitute significant entry barriers for generics. Many Indian generics manufacturers complain that they are being denied access to a region in which pent-up demand could push total Middle Eastern drug spending to US$80bn. Specifically within the UAE, the country's unofficial diabetes incidence rate of 25% is proving a significant, if frustrating, lure for Indian firms, which are eager to diversify sales beyond reliance on markets in the US and European Union.

Still, despite the growing local presence of some global generics makers, stringent regulatory conditions are likely to avert a sharp, sudden rise in new generic launches. Adherence to good manufacturing practice standards is virtually mandatory for any firm seeking to register a drug in the UAE. Although some leading Indian companies have succeeded in carrying out very limited product launches, mainly due to favourable local connections, the country's authorities are clearly not eager to open the wealth-creating local healthcare sector to a flood of low-cost generics.