Abolition of marketing destroys pharmacies - economist Kushniruk

The cancellation of marketing agreements between pharmaceutical manufacturers and pharmacies has jeopardized the functioning of the entire market. Small pharmacies found themselves at the epicenter of the economic consequences. After all, their administrative costs remain high, while turnover has fallen. In such conditions, small businesses suffer the most. Economist Borys Kushniruk told UNN about this in an exclusive comment.

Small pharmacies found themselves under threat after the cancellation of marketing agreements. Still, their administrative costs for operating the system remain conditionally high, and turnover has decreased. From an economic model perspective, the story is obvious in advance: the government decided to intervene in economic mechanisms with its own regulation. However, in reality, pharmacies operate either through markups and goods, or through marketing agreements. If there are none… then the only option is to increase the markup. If you are not allowed to do this, you become unprofitable.

He also added that the price of medicines does not depend only on the availability of marketing agreements — it is determined by a number of factors, including the costs of maintaining pharmacies, which are only increasing in the current realities. Therefore, instead of completely canceling marketing agreements, Kushniruk believes, it would be more logical to improve the mechanism of their action.

Instead, the economist emphasized, the result of the current market regulation was that only pharmaceutical manufacturers "benefited." They save on costs and do not reduce the purchase price of medicines.

Recall

From February 14, 2025, by Resolution No. 168, the Cabinet of Ministers of Ukraine introduced new rules for regulating the pharmaceutical market. According to the resolution, pharmacies were prohibited from entering into marketing agreements with drug manufacturers. Previously, these agreements allowed pharmacies to provide patients with discounts, implement social initiatives, and improve the qualifications of pharmacists.

However, more than four months after the introduction of new rules for the pharmaceutical market, analysts record an increase in drug prices in Ukraine, despite government initiatives.

The Ministry of Health also acknowledged this, Minister Liashko noted that in April, inflation for pharmaceutical products was 13.9%. And although it did not exceed the overall inflation rate – patients still did not see the expected reduction in the cost of medicines in their receipts.