GPTP: Government Intervention?

What is GPTP?

To those who are in the know, GPTP stands for "Good Pharmaceutical Trade Practice".

The Pharmaceutical Services Division, Ministry of Health, Malaysia intends to introduce a Guideline on "Good Pharmaceutical Trade Practice" to the Pharmaceutical Industry "somewhere" in 2014.

This Guideline, as its name imply, is a guideline where the Government encourages Pharmaceutical Companies to have non-discriminatory trade practices across various trade channels in the private sector.

There are 3 broad category of trade channels viz 1) Pharmacy   2) Private Medical Clinics   3) Private Hospitals

For examples 1) all trade channels must enjoy similar pricing and bonuses for products purchased and 2) all products must be made available to all channels unless mandatory restriction by the Ministry of Health.

As each channel has its peculiar behaviour and function in delivering healthcare services and products, it is thus, to the Industry, attracts different price structures and bonuses basing on types and values of products purchased.

The Industry is obviously against any form of trade control. The trade believes in having an efficient market which can only be brought about by having a "free market" where the dynamics of market forces reign.

The Industry is for ethical trade practices through "self-regulation" where each stakeholders will be governed by its respective "Code of Conduct or Trade Practices".

A market governed, through Government intervention, example with the introduction of Trade Guideline, will never be efficient and healthy. It will breed inefficiency and incompetency. There will be lack of market dynamism for development and growth.

So it is with caution that any intent of market regulation by the Authority, must be well thought through, and with much depth and wisdom.


Disclaimer: Views or opinions expressed are solely those of the Author and should be used with discretion. The Author shall not be held liable for any acts or omissions arising from the use of the information. The user will be personally liable for any damages or other liability arising hereof.

Post a Comment