Georgia: Health ministry issues Reference prices for medicines

Tbilisi: As per the recent mandate from the Georgian Ministry of Health, the Pharmaceutical companies will not be able to sell drugs at a higher price from February 15, with the establishment of new reference  prices for medicines. The Pharmaceutical sector has been issued a deadline to complete the process to review the prices until January 31.

If the sector is a documented argument over the price of any drug, a special council at the ministry will consider the matter, and some medications will be priced accordingly.

The maximum prices have been set for wholesale and retail realization.The maximum price of medicines in the retail network is calculated as follows:

A) If the reference wholesale price is up to 5 GEL – a maximum 40% deposit is added to it;

B) If the reference wholesale price is from 5 to 10 GEL – maximum 35% deposit is added;

C) If the reference wholesale price is from 10 to 20 GEL – maximum 30% deposit is added;

D) If the reference wholesale price is from 20 to 30 GEL, maximum 25% deposit is added;

E) If the reference wholesale price is 30 to 50 GEL, maximum 20% deposit is added;

F) If the reference wholesale price is from 50 to 100 GEL, maximum 15% deposit is added;

G) If the reference wholesale price is 100 GEL or more, then the standard wholesale price is added maximum 20 GEL.

The changes in the drug aims to increase access to medicines for the population in the country. The reference prices for medicines are different from the original and its analogue for generics, which will ensure the interest of international brands in the market.

The reference price, in the first stage, was set for more than 1300 chronic and oncological medications. Gradually it will be determined on other medications.