Reduction of drug prices: the plan and the law are in place, the President’s signature is expected
19 February 10:56
The introduction of wholesale price references for all medicines and the creation of a National Price Catalog were discussed yesterday by representatives of the Ministry of Health of Ukraine, the World Health Organization, the State Enterprise “Medical Procurement of Ukraine”, the National Health Service of Ukraine, the State Service of Ukraine on Medicines and Drugs Control, and the State Expert Center. This was reported by the Ministry of Health, "Komersant Ukrainian" reports.
According to Minister Viktor Lyashko, the introduction of mandatory price references for all medicines and the creation of a National Price Catalog is provided for by Law No. 11493, recently passed in the Verkhovna Rada, which has been sent to the President of Ukraine for signature.
As explained by the Minister, the price reference mechanism will help to avoid unreasonably high prices for medicines based on prices in other countries and will also promote transparency in pricing.
How will the new prices be formed?
The establishment of reference pricing for all medicinal products sold in Ukraine will be similar to the mechanisms already in place for medicines under the Affordable Medicines Program and medicines from the National Essential Medicines List.
After the law enters into force, manufacturers and importers of medicines will be obliged to declare prices in the National Price Catalog, which will be published on the website of the Ministry of Health.
A maximum reference price will be set, which manufacturers and importers will not be allowed to exceed when declaring their own prices for medicines.
Pharmacies will be obliged to stock and offer consumers medicines at the three lowest prices listed in the National Catalog.
Price reference will be implemented in stages. First, it will apply to the prices of drugs included in the National List of Essential Medicines, then to the prices of prescription drugs other than those included in the National List of Essential Medicines, and finally to the prices of over-the-counter drugs other than those included in the National List of Essential Medicines.
To automate the collection and analysis of prices, it is planned to use modern digital solutions, including software products of international organizations such as WHO.
The Government has recently determined markups for medicines
on February 14, the Cabinet of Ministers of Ukraine amended Government Resolution No. 955 “On Measures to Stabilize Prices for Medicines and Medical Devices” and thus regulated the issue of markups on medicines, prohibition of any marketing services for their promotion and resumption of inspections by the State Service of Ukraine for Food Safety and Consumer Protection in terms of price control in pharmacy chains.
The approved amendments, in particular, stipulate that starting from March 1, 2025, the maximum supply and sales markups charged by distributors of medicines to the wholesale prices for all medicines may not exceed 8% (except for certain exceptions). Additionally, regressive marginal trade (retail) markups to the purchase prices of prescription drugs are set at 10% to 25% depending on the cost of the drug. The maximum trade (retail) markups for OTC medicinal products procured from sources not prohibited by the legislation of Ukraine, except for the state and/or local budgets, should not exceed 35% of the purchase prices.
