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South African Court Rejects Medicine Price Rules

A South African court has rejected medicine pricing regulations set by the government earlier this year in an effort to cut drug costs.

The Supreme Court of Appeals set aside the rules, saying they failed to "pass the test of legality."

The ruling upholds an appeal from pharmacists, who said the pricing rules threatened their businesses.

Government officials say they plan to appeal Monday's ruling, saying the court had no jurisdiction on the matter.

In April, South Africa issued the new rules, which create a "single exit price" for drugs bought from manufacturers and limit pharmacies from varying their prices.

South African officials had hoped the rules would save consumers up to $450 million each year.

Some information for this story provided by Reuters.