Bitter pill to swallow: Medicine prices in private sector increase

Image credit: Kaboompics

In a statement, the department said the move is part of the government’s efforts to “respond to exceptional domestic and geopolitical pricing pressures affecting the pharmaceutical sector”.

“The 2.88% increase is intended to provide manufacturers with relief to sustain medicine supply, while maintaining affordability for patients and medical schemes.

“This extraordinary price adjustment applies to all medicines registered and listed in the national database as at 30 September 2026, including all related pack sizes.

“This decision follows sustained engagement between government and the pharmaceutical sector, which identified rising input costs, supply chain pressures, and geopolitical factors as key risks to medicine availability,” the department said.

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Balancing act

Furthermore, the adjustment is part of ongoing efforts to “balance affordability with sustainable supply”.

“It is expected to provide temporary relief to manufacturers facing cost pressures arising from, among other factors, geopolitical tensions.

“The single exit price is South Africa’s regulated maximum price for medicines sold in the private sector. It is the only price at which a manufacturer or importer may sell a medicine to any buyer, including pharmacies, dispensing doctors, and hospitals. The SEP does not apply to the state.

“The SEP framework is designed to improve the affordability and predictability of medicine costs, while preventing different buyers from paying different prices for the same medicine,” the department noted.