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Nini Popkhadze

Medication Prices to Keep Declining

According to the recent reports, prices are declining on most-used medications. Part of the experts ascribes this process to the state policy for enhancing competition on the pharmaceutical market.

The Jandacva.ge has contacted Nino Popkhadze, the head of the Healthcare Platform NGO, to comment on the issue.

Medication prices are declining. The pharmaceutical companies make adequate reaction to the new reality offered by the government. The new reality is to provide maximum open and transparent competitive environment on the market, Nino Popkhadze said.

It is not secret that the pharmaceutical market players have been operating on the market without regulations for nearly 20 years.  The previous government referred to liberal principles to justify this situation, but the fact was that the society was talking about a pharmaceutical cartel that used to sell medications for inadequately high and expensive tariffs.

“This policy has radically changed over the past years and the current government’s policy is to form maximally open competitive marekt”, Popkhadze noted.

This policy is reaping real results, because, according to our recent reports, the downturn tendency is maintained on medication prices over the past months, she noted.

Over the past six months our organizations has been carrying out active supervision over the pharmaceutical market in various forms, including by making test purchase. Prices in the segment of essential medications have declined by 35%-45%.

“I believe this tendency of price contraction will be maintained for a long period, because recently appeared companies import most-used medications at much lower prices. Consequently, their preparations are more affordable to our consumers and this process makes traditional importers to lower the margin and cheapen products after negotiations with suppliers, Popkhadze said.

The accuracy and reliability of our supervision is proved by the February indicators of the Panaskerteli Index, according to which prices on 200 most-used medications declined by 4,5% compared to January 2016.