South African Drugmakers Agree To End "Bonussing"

In a bid to lower medicine costs to the South African public, members of the Pharmaceutical Manufacturers Association of South Africa, which represents mainly the country's multinational research-based industry, have agreed to halt the practice of off-invoice bonussing for prescription medicines.

Off-invoice bonussing (the giving of free stock particularly to dispensing doctors) has in recent years contributed significantly to a steep rise in prescription drug utilization and overall health care inflation, says PMASA chief executive Mirryena Deeb. While the Association believes that patient education and choice remain vital to check potential abuses within the health care delivery system, in both public and private sectors, it also says the immediate ending of such bonussing will help to contain health care costs and end a number of potentially unethical practices.

The move is also expected to contribute towards greater price transparency throughout the distribution chain, ensuring that discounts given by manufacturers do in fact reach the consumer.