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Economist: Government Should Encourage Creating Competition on Pharmaceutical Market

pharmaceutical companies claim that the market is in crisis which is reflected on their profits. However recently new pharma company Humanity-Georgia entered the market. Soon products will appear in Georgia.  

There may be two reasons why pharmaceutical companies are dissatisfied: First reason is currency devaluation, as we know these companies are dependent on foreign markets and they are forced to purchase products in USD and sell in local currency. The second reason is revenues of population which was drastically effected by economic condition, economist Avtandil Silagadze says.

Expert thinks that outcome from this situation is encouragement and promotion from government, to receive more pharma companies on Georgian market.

“When there are oligopolistic groups on a market certainly they define prices. I can not blame them because they work on profit, but at the same time they do not take people’s interests into consideration, however Government’s role is to encourage more and more private companies to enter the market and create healthy competition, which will regulate prices,” Silagadze added.

Avtandil Silagadze also mentioned that the appearance of new pharmaceutical company will have positive consequences on society.