Reduction in drug prices: the government has announced a number of new decisions

The government is introducing new regulations on drug pricing - limiting trade margins for pharmacies and expanding the "Affordable Medicines" program, said Prime Minister Denys Shmyhal following a government meeting in Telegram, writes UNN.

Details

"Drug prices will be reduced already in March. At the initiative of the President of Ukraine Volodymyr Zelenskyy, during the meeting of the National Security and Defense Council, measures were approved, the implementation of which will allow to reduce drug prices for our citizens. In particular, Ukrainian manufacturers will reduce ex-factory prices for the 100 most popular drugs by 30% from March 1. Today, also in fulfillment of the decision of the National Security and Defense Council, the government approves other measures to reduce the cost of medicines. First of all, we are launching a number of regulations to ensure transparent pricing and proper competition", - Shmyhal said.

Shmyhal listed the innovations:

• Limiting the maximum trade margin for pharmacies - no more than 35% for over-the-counter drugs and a regressive scale for prescription drugs. Suppliers will be able to add no more than 8% to the wholesale price depending on the cost of the drug.
• Strengthening control over the availability of medicines in hospitals. Patients should receive free medicines in hospitals.
• Within the framework of the "Winter Support" initiative, the "Affordable Medicines" program has been significantly expanded. For this, more than UAH 6 billion is provided in the budget.
• Improving the territorial availability of medicines. "Ukrposhta" delivers medicines free of charge throughout the country. The mobile pharmacies launched by the Government last year are already operating in 650 settlements.
• From July 2025, all pharmacies will be required to conclude a contract with the National Health Service of Ukraine and will be dispensing drugs under the "Affordable Medicines" program.

According to the government representative in parliament Taras Melnychuk:

• Amendments have been made to a number of government resolutions to create conditions for public access to medicines, prevent further price increases for medicines in Ukraine, and regulate the conduct of unscheduled state supervision (control) measures for compliance by business entities engaged in wholesale and retail trade in medicines and medical devices with the requirements for the formation, establishment and application of state regulated prices.
• Amendments have also been made to a number of other documents to bring the procedures for state quality control of medicines and control over the compliance of immunobiological preparations used in medical practice in line with the requirements of the relevant law No. 3860-IX and to improve public access to quality and affordable medicines that have been prescribed and put into circulation for use in the territory of EU or EFTA member states.

Reminder

The European Business Association called on the President of Ukraine to veto the bill "On Amendments to the Law of Ukraine "On Medicinal Products" (No. 11493), aimed at regulating the pharmaceutical market, which was passed by the parliament. The EBA statement says that the bill may negatively impact patient health.

Health Minister Viktor Liashko 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.

Add

Last week, President Volodymyr Zelenskyy stated that a decision needs to be made to reduce drug prices.

The pharmacy business supported the President's statement, and the public union "Pharmacy Professional Association of Ukraine" sent a Declaration of Cooperation on Reducing the Cost of Medicines to the Ministry of Health of Ukraine, which has already been signed by a number of large pharmacy chains.

It outlines the following obligations of all market participants:

• National manufacturers of medicines reduce ex-factory prices for their products by a certain percentage compared to prices as of January 1, 2025.
• Distributors proportionally reduce wholesale prices to the manufacturer, which will affect the entire logistics network.
• Pharmacies, for their part, reduce retail prices for medicines, ensuring a real reduction in the cost of the drugs for the end consumer, i.e. apply a proportional discount to the manufacturer's margin.

However, on February 10, Zelenskyy stated that drug prices in Ukraine are absolutely inadequate and announced a meeting of the National Security and Defense Council on reducing prices. Already on February 12, following the meeting, Zelenskyy reported that there is a way to reduce the price of the top 100 medical products by 30% from March 1 - on the most important medicines for Ukrainians.

On February 13, the President enacted the decision of the National Security and Defense Council on reducing the cost of 100 medical products by 30%. Other medicines are to become cheaper by 20%.