Why are OTC drugs two or three times more expensive in drugstores?

Sales of OTC drugs returned to growth in the first three months of this year, with a 9.6% plus in euros, from a similar decline last year. The increase came as in terms of units both 2009 and the first quarter of 2010, saw a decline. Under the circumstances, the increase in value can only be explained through sales of more expensive products. OTC drug prices are not regulated by the Health Ministry and hence they are extremely appealing to distributors and drugstores. Producers say they have not raised prices over the past year, so that the possible increases could only come from hikes operated by distributors and drugstores. On the other hand, drugstores say they have not embraced a price hike policy, but there are punctual situations generated by the exchange rate trend and producers’ policy. “(…) We consider the times are not favourable for an overall increase in OTC drug prices. Nevertheless, in Romania OTC drugs’ prices are higher than in other European countries because this is the product category on the basis of which drugstores can survive financially,” said the representatives of Sensiblu, the biggest domestic drugstore network.