Drugs may not be sold at prices higher than the published declared price.

The Government has just issued Decree 54/2017/ND-CP detailing a number of articles and measures to implement the Law on Pharmacy.

The Decree devotes Chapter VIII to specifically regulating drug price management measures. Drug price management measures prescribed in Decree 54/2017/ND-CP include:

Declare and re-declare drug prices; post drug prices, regulate retail surplus of retail establishments within medical examination and treatment facilities; bid for drug purchase, negotiate drug prices and measures to stabilize drug prices.

The Decree clearly states that pharmaceutical business establishments are responsible for fully implementing regulations on drug price declaration and re-declaration and other regulations on drug price management; and are responsible before the law for declared and re-declared prices and the accuracy of data, reports, and information provided by the establishments.

Pharmaceutical business establishments are not allowed to sell drugs without a declared or re-declared price announced on the Ministry of Health's electronic information portal declared or re-declared by the drug manufacturing establishment, the processing facility, or the drug importing facility.

Pharmaceutical business establishments are not allowed to wholesale or retail drugs at prices higher than the declared or re-declared prices that have been announced.

Decree 54/2017/ND-CP detailing a number of articles and measures to implement the Law on Pharmacy.

In case a competent state management agency issues a written notice to a pharmaceutical business establishment requesting a review of the price of a drug item declared or re-declared by the establishment and published on the Ministry of Health's electronic information portal, within 60 days from the date of the document from the competent state management agency, the establishment must have a written response with relevant documents to explain the reasonableness of the declared price or adjust the declared or re-declared price to a reasonable level.

After the above deadline, if the facility does not have a written response, the declared and re-declared prices will no longer be valid and will be withdrawn from the Ministry of Health's electronic information portal.

The Decree also requires drug wholesalers to post the wholesale price of each drug at the transaction location or drug sales location of the drug wholesaler.

Drug retail establishments must post the retail price of each drug at the drug retail establishment.

Wholesale and retail drug stores are not allowed to sell at prices higher than the listed prices.

Retail margin from 2-15%

Regarding the retail surplus of drug retail establishments within the premises of medical examination and treatment facilities, the Decree stipulates:

Retail price = Purchase price + Retail margin (%) × Purchase price. The retail margin of drug retail establishments within the premises of medical examination and treatment facilities must not be higher than the maximum retail margin as follows:

For drugs with a purchase price calculated per smallest packaging unit less than or equal to 1,000 VND, the maximum retail margin is 15%;

For drugs with a purchase price calculated per smallest packaging unit from over VND 1,000 to VND 5,000, the maximum retail margin is 10%;

For drugs with a purchase price calculated on the smallest packaging unit from over 5,000 VND to 100,000 VND, the maximum retail margin is 7%;

For drugs with a purchase price calculated on the smallest packaging unit from over 100,000 VND to 1,000,000 VND, the maximum retail margin is 5%;

For drugs with a purchase price calculated on the smallest packaging unit of over VND 1,000,000, the maximum retail margin is 2%.

According to Giaoduc.net.vn