Expectations of Drug Price Increases in Turkey May Not Impact Georgian Market

Türkiye is set to increase the euro exchange rate by an additional 25% for drug pricing. According to Medimagazin, this will elevate the rate to 17.5483 liras, with the change taking effect on December 25.

In Georgia, there have been speculations about potential hikes in the prices of medicines imported from Türkiye following such adjustments. However, past instances have shown that these predictions often don't materialize.

Throughout 2022, Türkiye made several adjustments to medicine prices, but the impact on Georgian imports remained negligible due to the strengthening of the Lari against the Turkish Lira.

In July, the Georgian Ministry of Health addressed this issue, noting a 46% strengthening of the Lari against the Lira since the beginning of 2023. Consequently, the increased drug prices in Türkiye were unlikely to influence Georgian market prices, enabling local companies to continue purchasing and importing Turkish pharmaceuticals at lower costs.

This statement followed Türkiye's decision to raise the euro exchange rate for drug prices by 30.5%, resulting in an exchange rate of 14.04 liras. Subsequently, the market trends in Georgia confirmed the prediction, as Turkish drug prices remained stable.

The Turkish pharmaceutical market became accessible to Georgia in January 2022, leading to a significant reduction in drug prices by 70-80%.