regulation of medicine prices poses serious risks, Executive Director of the Association of
Pharmaceutical Companies Irakli Margvelashvili says commenting on the Health Ministry’s intention
to introduce partial regulation of drug prices.
to Irakli Margvelashvili, there is no information about how the state is going to regulate the pharmaceutical market, but if
the topic is still on the agenda, there are several different ways to regulate
“For example, supplier price
fixing as 80-85% of drugs are imported and
their cost largely depends on the exchange rate of the national currency. There
is also a model that limits the profit margins of pharmaceutical companies as
well as possible price hikes. Georgia’s pharmaceutical
market is free, but after the drug expenditures increased significantly, the
issue has become urgent,” Executive Director of the Association notes.
words, many countries regulate prices
for medicines, but we should adopt a model of the countries with similar development.
“You can’t compare Georgia
with Germany or the Czech Republic as they are very different from it,
namely the market structure, medical and
insurance systems, not to mention the level of economic development and population
income. We should be compared with neighboring countries. For example, drug
price regulation was introduced in Russia and Azerbaijan and led to disastrous
results as many vital drugs became scarce and disappeared from the market. The
regulations were adopted without consultation with the private sector. Their example shows that
price regulation is very risky, ” Irakli Margvelashvili explains.
According to him, the Georgian
legislation was adopted in 2009 and the situation in the country is unique in this
regard. Before taking price regulations,
everything should be very accurately and thoroughly analyzed, primarily
possible consequences and risks.
“Some drugs will disappear from the market and will
be replaced by cheaper, but lower-quality
products. These factors can cause harm to the health of patients. To avoid risks, everything should be very
accurately analyzed before deciding on state regulation of drug prices, ” Margvelashvili