The consumers’ price watchdog is investigating the sale of the anti-fungal medicinal cream Canesten, on sale in Malta at a much higher price than in other European countries.
The cream is on sale in Maltese pharmacies at two different prices – both of which are significantly higher than its price elsewhere.
The cream imported in Malta through the official agent sells at Lm2.13 per 20g pack while the same product that is parallel-imported sells at Lm1.99. Yet the same medicine’s packet shows that its price in Greece is Euro 1.69, or 98c – that is Lm1.42 and 71c less than the price it is sold for in Malta.
The Consumer and Competition Division is investigating the case following queries from customers, director Godwin Mangion told MaltaToday.
“The consumer price of Canesten cream varies from one country to another. For example it is sold at £Stg 4.15 for 20gr pack in UK, at £CYP 2.46 in Cyprus, at Euro 1.69 in Greece, Euro 7.20 for a 30g pack in Italy,” Mangion said. “The price of Canesten cream imported in Malta through the official agent sells at Lm2.13 per 20g pack. The other price concerns a parallel imported product that is being sold at a lower price. One cannot make a straightforward comparison between the price in Euro and the Maltese price as one should consider, amongst other factors, that the product could be bought by the local importer at a higher price than that at which the Greek trader buys it. Furthermore, there are the costs of transport and local charges involved in placing the product on the local market. Finally one has to point out that parallel trading is to be encouraged, since, if the market functions efficiently, the consumer stands to gain from lower prices as a result of the ensuing increased competition. This office however is still investigating this particular case.”
Mangion said a comparison of the price of medicines available on the local market is made with the average price from a basket of EU countries. If the price in Malta is equal to or less than the average price of a basket of EU countries, the consumer price in Malta is deemed to be fair.
Recently, Health Minister Louis Deguara said that while some medicines in Malta were sold at below the average price in Europe, in most cases prices were on the high side, while Labour’s spokesman on health claimed that medicines were still six per cent higher than the European average.
Mangion said it was still early to calculate percentages since not all the available pharmaceuticals have been analysed.
“Although we have identified a number of reasons which could be the cause of prices being higher than the EU average, it would be opportune to confirm this once we ask for justifications for high prices in the market,” Mangion said. “Where the local market price of pharmaceuticals is found to be above the average price of the same pharmaceuticals marketed in other EU countries the relative importer will be asked to justify the price. If the reasons brought forward by importer are not considered justified then he has to decrease the price.”
Dr Deguara also said that government was committed to ensuring fair and just prices even without the stakeholders’ agreement as a stalemate between the Chamber of Commerce and GRTU has blocked progress on that front.
“The technical point for the procedure of establishing that prices in the market are fair and justified has already been agreed upon by all the stakeholders,” Mangion said. “However, if the impasse which has recently hampered the working of the committee is not overcome in a short time, government will consider all options to ensure that the aforementioned aim is attained. Importers are to start reducing the consumer price deemed unfair in the coming months.”
Last May, government said it may have to resort to price orders on pharmaceuticals unless the impasse on the medicines price-monitoring committee kept stalling the price revision exercise launched last year.
The impasse was created after members on the committee objected to the presence of GRTU representative Mario Debono, who is under police investigation about counterfeit medicines. Debono, who represents pharmacy owners and is also GRTU vice-president, is being contested by the Chamber of Commerce as well as by the pharmaceutical research representatives.
The GRTU however is staunchly defending its representative and insists on keeping Debono on the committee, leaving the price control negotiations at a standstill.

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