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Medication Prices will Increase Inevitably without Legislative Amendments

The Association of Young Financiers and Businessmen (AYFB), jointly with the Healthcare Platform nongovernmental organization, has published the April report for the Panaskerteli Index.

The report shows that in April the Panaskerteli Index decreased slightly by 0.3 points to 11.7 point. In whole, prices declined on 16 medications and increased on 5 ones. Prices remain unchanged on other drugs.

The AYFB launched examination of drug tariffs in November 2015. Since then, price downturn tendency strengthens month to month. It is interesting what factors are driving this tendency and what are the future prognosis around the pharmaceutical market. Soso Tsiskarishvili, president of the Club for Independent Experts, assures that appearance of a new competitor company on the market has triggered price reduction on the pharmaceutical market:

“As a rule, medication prices decline, when pharmaceutical networks and companies expect a new competitor to appear on the market. We see such attempts in Georgia. We see that a new pharmaceutical company has entered the country – Humanity Georgia. The fact is that over the past months the pharmaceutical market records a downturn tendency on a certain category of medications. However, we should remember that the earlier reality will be returned without adoption of respective legislative package.

Humanity Georgia has delayed imports of several hundreds of new medications to the Georgian market. The company asserts that their drugs would be sold for cheaper tariffs. At this stage, the market does not see new medications.  There is much probability that drug prices will increase again if the reality does not change”, Soso Tsiskarishvili said.

Georgia should introduce the English practice, the president of the club for independent experts, noted:

“England has established a very good practice. If a pharmacy sells a drug for the price that exceeds the prime cost by more than 21%, the state structures extract them from the network and transit them to clinics. Georgia should also follow this experience, otherwise our feudal pharmaceutical companies will resume raising medication prices and our society will receive unsatisfactory results again”, Tsiskarishvili noted.

We remind you that the AYFB and the Healthcare Platform NGO launched supervising pharmaceutical market tendencies in November 2015. Medication prices are always widely discussed. To this end an economic index called as the Panaskerteli Idnex has been created to examine pharmaceutical market changes by observing prices on the most in-demand specific groups.