Legal Updates - February 4, 2016

Ministerial Decision 144/2015 Issued on 8/11/2015 Amending Ministerial Decision 86/2000 Regarding the Registrations of Drug Companies, their Products and the Pricing of these Products

Ministerial Decision (“MD”) 144/2015 from the Ministry of Health amends Article (11) of MD 86/2000 regarding the registration of drug companies, their products and the pricing of these products. Article (11) determines the profit margins that are levied on imported drugs and the percentages thereof which will go to the agent and the distributing pharmacy depending on the drug price. The drug price is determined by a technical committee; after that the profit margin is added as a percentage of this price.

Instead of a fixed profit margin of 70% where the agent’s share is 45% and the rest goes to the distributing pharmacy, MD 144/2015 sets the profit margin to 43% for drugs that cost less than OMR 20 to export, 39% for drugs that cost OMR 20 to OMR 50 to export, and 35% for drugs that cost more than OMR 50 to export. The agent’s profit margin in all these cases is fixed at 15% with the remainder going to the distributing pharmacy.

Ministerial Decision 304/2015 Issued on 4/11/2015 Amending Ministerial Decision 90/2013 Determining the Procedures and Regulations of dealing with Private Sector Institutions that Violate the Provisions of the Labor Law and its Bylaws

MD 304/2015 from the Ministry of Manpower amends MD 90/2013, which determines the procedures and regulations of dealing with private sector institutions that violate the provisions of the labor law and its bylaws. Under MD 90/2013, if a violation by a private sector institution is proved, then the Ministry of Manpower may suspend certain services relating to that institution’s work force (e.g., the issuance, renewal and amendment of labor cards for their employees).

Article 2 of MD 90/2013 formally provided that only the Director General could approve the suspension of such services. MD 304/2015 seeks to expand the scope of who may approve a suspension of services by providing that either the Director General or the Director of the concerned Department may approve the suspension.

The suspension will lifted by a decision from the Director General once the breach or violation has been remedied and violation fees (if any) have been paid.