NEW CLICKS HOLDINGS - NEW CLICKS TO APPEAL COURT J
NEW CLICKS HOLDINGS - NEW CLICKS TO APPEAL COURT JUDGMENT
New Clicks Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 1996/000645/06)
JSE share code: NCL
ISIN: ZAE000014585
(`New Clicks`)
NEW CLICKS TO APPEAL COURT JUDGMENT ON PRICING REGULATIONS
New Clicks Holdings is to appeal the Cape High Court`s judgment to dismiss its
application to have the medicine pricing regulations overturned.
On Friday 27 August the court dismissed the application by New Clicks and others
to overturn the medicine pricing regulations. The decision of the court was not
unanimous, with Judge President John Hlophe and Judge James Yekiso ruling in
favour of the Minister of Health and the chairperson of the Pricing Committee,
and Deputy Judge President Jeanette Traverso handing down a dissenting judgment.
In her dissenting judgment, Judge Traverso ruled that the regulations were
fatally flawed and should be set aside in their entirety, supporting the legal
arguments of New Clicks and the other applicants on the invalidity of the single
exit pricing mechanism, the appropriateness of the dispensing fee and other key
aspects, as well as on the process followed by the Pricing Committee in making
its recommendations to the Minister.
Group leader Trevor Honneysett said the dissenting judgment by Judge Traverso
supported several of the key legal arguments raised by New Clicks and the other
applicants, and `we believe this provides us with strong grounds for appeal. We
will continue to follow all legal avenues to ensure that the regulations are
revisited and ultimately implemented in a format which achieves savings all
along the supply chain.`
`New Clicks has always supported the Government`s objectives outlined in the
National Drug Policy of making medicine more affordable and more accessible, as
well as improving the rendering of pharmacy services. We are also committed to
achieving a sustainable and transparent pricing mechanism in line with
successful international medicine pricing models.`
Honneysett said retail pharmacy plays an indispensable role in healthcare
delivery in South Africa and its demise would ultimately be to the detriment and
cost of the consumer. `We challenged the regulations in court owing to the
severe risk that the regulations posed to the viability of pharmacies, many of
which may face closure if the regulations are implemented in their current
format.`
`We believe that it would be counterproductive for the regulations to be
implemented until and unless they are passed on appeal. The parties had agreed
in respect of the existing interim relief order that the regulations would not
be implemented while the matter was before the court and this situation should
still pertain pending an appeal,` said Honneysett.
Cape Town
31 August 2004
Sponsor: Investec Bank Limited
Issued by Tier 1 Investor Relations on behalf of New Clicks
For further information contact:
Tier 1 Investor Relations
Tel: +27 (0)21 702-3102
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