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Shota Gulbani: Humanity Georgia’s Cheap Medications Project Lowers the Panaskerteli Index

The Association of Young Financiers and Businessmen (AYFB) has completed a development of the pharmaceutical index of Panaskerteli and introduced a public report on the current condition on the pharmaceutical market.

The YAFB has conducted a supervision over medication prices for three months (November-December 2015 and January 2016). The research has showed that in the first case the Panaskerteli Index decreased by 1.75% and in the second case the Index declined by 4.64%. This signifies the pharmaceutical market has recorded a tendency of contraction in medication prices.

AYFB President Shota Gulbani noted the Panaskerteli Index is calculated based on monitoring of prices of the 200 most in-demand medications on the pharmaceutical market, including medications manufactured in Georgia and abroad, both of original indications and their substitutes – Generics.

It should be noted prices on Georgia-manufactured medications are not decreasing, because two major players dominate on the market and this factor seems to be restricting competition in the pricing process, Shota Gulbani noted and added that prices have decreased on mainly foreign medications. As a result, the Panaskerteli Index has showed price contraction tendencies.

This tendency coincides with expectations of  appearance of a new pharmaceutical company in Georgia – Humanity Georgia. The company has offered medications at about 30% lower tariffs, Gulbani said and added that this circumstance proves if Georgia ensures normal market conditions and creates respective competitive environment, mediation prices will essentially decrease. The very expectation of appearance of the new market player has caused a contraction in the Panaskerteli Index, Gulbani noted.

According to the AYFB report, the Index calculation process was carried out in November-December 2015 and January 2016 by monitoring medication prices. The research was carried out based on incognito and direct purchase methods. In November 2015 the Panaskerteli index marked 14.5, in December -14 and in January 2016 – 13.35

The Panaskerteli Index will be renewed on monthly bases, the AYFB says.