Tight regulation of the pharmaceutical market may create additional problems and provoke a rise in drug prices - economic expert Borys Kushniruk

The introduction of critical markups by the state and the prohibition of discounts from manufacturers may cause more harm than good in the pharmaceutical market. This opinion was expressed by economic expert Borys Kushniruk in an exclusive commentary to UNN.

I believe that the state should have a fairly strict mechanism for fighting monopolies and cartels, but setting these critical markups and so on, it actually provokes problems. In addition, there are some other things that look strange. The prohibition of the so-called marketing agreements (discounts given by the manufacturer - ed.), which form a very significant part of the pharmaceutical chains' revenues, and which ensure their functioning,

According to him, such changes in the regulation of the pharmaceutical market will not help reduce the price of medicines, but, on the contrary, may eventually lead to an increase in the cost of drugs.

If you take this out from under them, it doesn't directly affect price reductions, but rather creates a difficult situation for the networks,

He explained that the new regulation could lead to a lack of competition in the pharmaceutical market and ultimately cause an increase in drug prices.

Commenting on concerns about the potential exit of foreign companies from the Ukrainian market due to tight regulation, Kushniruk emphasized the importance of maintaining foreign investment in Ukraine.

Undoubtedly, we need foreign businesses to stay, work and invest in the country's economy,

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 to set a margin limit of 8% for distributors and representative offices of foreign pharmaceutical companies. According to the estimates of economic expert Serhiy Lyamets, state regulation of drug prices and limitation of markups to 8% may lead to annual budget losses of at least UAH 8 billion.

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 could 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.