Despite the implementation of the government's initiative to reduce prices for the TOP-100 medicines, prices for pharmaceutical products in Ukraine have been growing in recent months. This is evidenced by the results of an analytical study of the PharmXplorer market research system conducted by the international research company Proxima Research, UNN writes.
Details
+21% in hryvnia - this is how much the consumption of medicines in monetary terms increased in January-April 2025 compared to the same period in 2024. In dollars, the growth was +12%, while the number of packages purchased remained almost at the level of last year (−0.1%), which indicates an increase in the cost of a unit of production.
In practice, this means that Ukrainians spend more money on medicines, but buy no more than last year. The increase in costs with the same volume of consumption is a clear indicator that medicines have actually become more expensive, and have not become more affordable.
The average retail price of most drugs has increased, although back in February the Government and the Ministry of Health announced a reduction in prices for the TOP-100 drugs. The actual effect on the market was insignificant: only -1.8% in total monetary terms, because these drugs account for only 8.4% of the retail market.
Here, of course, questions arise about the real effectiveness of the state initiative and the mechanisms of its implementation. If the price reduction covers only a small part of the market - less than 10% - then the expected impact on the total cost of medicines for the consumer is minimal. Moreover, with the growth of average prices for most other drugs, such "point" regulation does not look like a systemic anti-crisis policy in the field of health care.
In February 2025, the Ministry of Health of Ukraine announced a reduction in prices for a number of medicines, publishing two lists of drugs, the prices of which were to be reduced in accordance with agreements with domestic manufacturers. These lists were published in stages and cumulatively covered slightly more than 300 items.
It was expected that from March 1, prices for the most popular drugs would decrease by at least 30%, as announced by the President. However, according to analytical data, the actual impact of this initiative on the market was minimal: at the end of April 2025, the total reduction in drug costs was only -1.8%, since these drugs cover only about 8.4% of the total retail market in monetary terms.
In this context, it is especially important to take into account the structure of financing the market of medicines in Ukraine. According to the study, government spending covers only 11% of the total consumption of medicines, while 89% of the costs are borne by patients out of their own pockets. All these factors make the Ukrainian pharmaceutical market extremely vulnerable to any economic fluctuations and cast doubt on the effectiveness of current regulatory decisions.
Thus, despite the declared intentions to reduce the cost of medicines and make them more accessible, in practice Ukrainians continue to face rising prices for medicines. The increase in prices with a low level of state coverage of costs and insignificant coverage by regulatory measures indicates the absence of a systemic impact on the market. What will happen next will depend on the real steps of the government to expand pricing mechanisms, strengthen control and increase the share of state participation in providing the population with medicines. For now, the pharmaceutical market of Ukraine remains sensitive to inflationary fluctuations and unpredictable for the consumer.
Let us remind you
Resolution of the Cabinet of Ministers of Ukraine No. 168 of February 14, 2025 provides for new rules for regulating the pharmaceutical market. In particular, restrictions were introduced on markups on supply and marketing and retail markups for all medicines, and not only for certain categories. In addition, the resolution prohibits retail from entering into marketing agreements with pharmaceutical manufacturers, which allowed pharmacies to make discounts for patients, introduce social projects and conduct training for pharmacists.
The purpose of the innovations was to reduce prices and increase the availability of medicines. At the same time, patient organizations warned that excessive intervention in the market could lead to a shortage of drugs, the closure of pharmacies in rural areas and the curtailment of patient support programs.
The European Business Association also reacted critically to the changes, which called on the President of Ukraine to veto the bill due to risks to market stability and patient health.
In addition, according to estimates by experts, restrictions on markups and direct price regulation may result in annual losses for the state budget of at least UAH 8 billion.