Why a plan to lower drug prices will fail - shortcoming in  PM Gharibashvili's initiative

Why a plan to lower drug prices will fail - shortcoming in PM Gharibashvili's initiative

access_time2022-01-11 15:40:19

As reported, the Georgian government announced a new initiative which as the Prime Minister says, will lower drug prices. The initiative envisages simplification of the imports of medicines from Turkey that will increase supply of cheaper drugs as well as competition in the market and will decrease prices.


Health expert Kakha Jakeli see the problem not in access to cheap drugs, but in a high level of monopoly on the pharmaceutical market, where large chains can buy drugs at low prices and sell at exorbitant ones.


In his words, to reduce the drug prices, the government must fight monopolists instead of just opening access for importers.

“The Prime Minister's statement is completely unprofessional from a pharmaceutical marketing point of view.Now Georgian companies buy the cheapest medicines in India, where drugs are cheaper than in Turkey, but this still does not reduce prices on the local market. Georgian pharmacy chains sell them at a very high price. Medicines in Georgia are expensive because the several companies control the entire Georgian market, this is the issue that the Prime Minister should have spoken about, ”the expert stresses.


Kakha Jakel i believes that i n order to improve the situation, it is necessary to separate pharmaceutical companies as in civilized countries that will allow to decrease prices in the market and not just open access to Turkish drugs.


“If the antimonopoly service works well and ends the cartels, drug prices will fall by 30-40%,” the expert notes.

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