Georgian Health Ministry: Some drugs sold in pharmacies at 32 times the price
The Ministry of Health of Georgia states that the pharmaceutical sector sells some medicines 32 times more expensive than their true price. In some cases the markup reaches 1000%, 2000% and 3000%.
For clarity, the Ministry shows a list of specific drugs and says that the industry is harming citizens in order to maximize profits.
Statement of the Ministry of Health
According to the Ministry of Health, drugs in all major pharmacy chains cost almost the same. Overpricing “raises reasonable suspicion” that there is an agreement between pharmaceutical companies, and there is misuse of a dominant position.
“Artificial overpricing of medicines is unacceptable. With existing unfair prices and unhealthy competition, this sector is harming citizens to maximize profits. There is no free pricing of medicines among large economic agents operating in the market and based on agreement, healthy competition is limited,” the ministry said in a statement.
Since the pricing policy of large pharmaceutical companies contains signs of a cartel transaction, to study this issue the Ministry of Health is turning to the National Competition Agency, to which it will hand over all the necessary documents.
“In order to inform the population, we explain that in the near future the state will set fair, reference prices (upper price limit) for the above-mentioned drugs, above which their sale will be prohibited,” the ministry promises in its statement.
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A system of reference prices is in place in Georgia
On January 15, 2023, reference prices for medicines were determined in Georgia, which means the maximum price determined by the state. Since February 15, all importers, distributors and retailers are obliged to be guided by this upper price limit.
There is a government decree on which drug prices the government will regulate in the first phase.
On March 23, the Ministry of Health reported that some pharmaceutical companies continue to artificially inflate prices. In particular, we are talking about expensive cancer drugs, for which there is no reference price, and which are issued by the state within the framework of the universal health care program.
As the ministry explains, according to the National Health Agency, the companies selling expensive oncological drugs have set the same prices for the same drugs. Under the universal health care program, GEL 25,000 [about $9300] is allocated per beneficiary per year for chemotherapy hormone therapy, and as a result of artificially high prices, cancer patients’ access to medicines is limited.
