Committee informed monopoly on drug imports causing shortages

The State Trading Organisation (STO) has informed the Parliament’s Social Affairs Committee that the shortage of certain medicines in the Maldives is primarily due to exclusive import rights held by individual companies.

The committee is currently conducting an inquiry into the shortage of essential medicines across the country. At a meeting held on Tuesday, STO Managing Director Shimad Ibrahim explained that the company faces limitations in importing some pharmaceuticals because of regulatory restrictions and exclusivity agreements with foreign manufacturers.

According to Shimad, STO currently imports approximately 30 per cent of the medicines needed in the Maldives. However, many commonly used drugs are registered under private companies, giving those companies sole import rights.

“The rule is that if a private company registers a drug, only that company is allowed to import it,” Shimad told the committee. He noted that the Maldives Food and Drug Authority (MFDA) enforces this regulation, which prevents STO from importing certain medications even when they are in short supply.

Shimad also explained that foreign pharmaceutical manufacturers often grant exclusive rights to only one company in the Maldives, making it difficult for other suppliers, including STO, to secure the same products.

One of the drugs discussed was Lucentis, used to treat eye conditions. Committee member and Galolhu North MP Mohamed Ibrahim raised concerns over a public complaint that Lucentis had to be purchased at MVR 18,900, as it was not available at regulated prices. Shimad confirmed that Lucentis falls under the same constraints.

He added that many other registered drugs face similar barriers and that STO is working with healthcare professionals to identify and prescribe alternative generic brands where possible.

During the session, Machchangolhi South MP Musthafa Hussain questioned STO’s explanation and suggested that pharmacies may be unwilling to sell medicines at government-set prices. “It is important to clarify the reasons for the public,” he said.

Shimad did not directly respond to the pricing concern but cited Novartis as an example. He said Novartis does not supply drugs to STO and that doctors prefer prescribing Novartis products due to their recognised quality. However, Novartis has an existing arrangement with another importer and does not permit STO to distribute its drugs in the Maldives.

When committee members asked how soon the issue could be resolved, neither Shimad nor other officials present were able to provide a timeline.