Foreign companies are worried: limiting margins to 8% will force them to close representative offices in Ukraine - EBA
Kyiv • UNN
Representative offices of foreign pharmaceutical companies warn of possible closure due to the restriction of margins to 8%. The EBA warns that this could lead to job losses and reduced availability of imported medicines.
Representative offices of foreign pharmaceutical companies operating in Ukraine are sounding the alarm - changes to the legislation limiting the distributor and representative office margins to 8% will force them to leave the market. This was reported in an exclusive commentary to UNN by the European Business Association (EBA).
The law sets the maximum supply and sales margin at no more than 8%. The EBA notes that pharmaceutical companies operate under different financial models. Some foreign companies use this margin as the main source of cost coverage. Accordingly, this percentage is insufficient for them. The imposition of such a restriction will force companies to close their representative offices in Ukraine or significantly reduce them,
According to the EBA representatives, this not only threatens to cut jobs for Ukrainians and reduce tax revenues, but also may jeopardize the continuous treatment of certain categories of patients who need imported medicines.
The EBA confirmed that it has already received appeals from foreign companies expressing concerns.
Companies that are sales offices have contacted us expressing concern that such changes will lead to radical changes in their operations, such as closing their office in Ukraine,
In addition, the EBA emphasized that imported drugs may become less affordable for patients or disappear from the market altogether.
Recall
The Verkhovna Rada passed in the second reading the draft law No. 11493 on the regulation of the pharmaceutical market. In particular, one of the provisions is the establishment of a margin of 8% for distributors and representative offices of foreign pharmaceutical companies.
The European Business Association has previously called on the President of Ukraine to veto the draft law passed by the Parliament due to concerns that the innovations may negatively affect the health of patients.
Add
Health Minister Viktor Lyashko did not rule out a possible reduction in the range of medicines in pharmacies after the law comes into force, which could affect the availability of medicines for Ukrainians.
