“New regulation of the pharmaceutical market may deprive 200 thousand Ukrainians of access to social programs for patients – professional business communityThe new regulation of the pharmaceutical market may lead to the termination of social programs to support patients and increase in
drug prices. The business community calls for regulating marketing agreements in line with European practices.”, — write: unn.ua
The business community together with the State Service of Ukraine on Medicines and Drugs Control (SMDC) discussed changes in the regulation of the pharmaceutical sector. The meeting was attended by representatives of leading professional associations and businesses: American Chamber of Commerce in Ukraine, Association of Pharmaceutical Research and Development (APRaD), Association of International Pharmaceutical Manufacturers (AIPM Ukraine), European Business Association, All-Ukrainian Pharmaceutical Union “Farmukraina”, European Pharmaceutical Association, Pharmacy Professional Association of Ukraine, All-Ukrainian Chamber of Pharmacy, as well as pharmaceutical manufacturers KRKA, Pfizer, Servier, Pharmaceutical Firm “Darnitsa”, etc.
According to Apteka.ua, on the one hand, business representatives agreed that there is a need to regulate marketing agreements in line with European practices. However, they pointed out the risks that may arise from a complete ban on marketing and the use of reverse price adjustment mechanisms.
In particular, this includes the termination of social support programs and loyalty programs for patients implemented by manufacturers in cooperation with pharmacies and designed as marketing activities. Currently, about 200 thousand patients are involved in various support programs.
As a result, this will lead to restrictions on the availability of relevant medicines.
There is also a risk of an increase in the operating margin and the cost of medicines for the end consumer. “Marketing agreements have kept the margin at 14-15%, which is the lowest in the last 10 years,” the meeting participants noted.
In addition, risks arise from depriving market operators of the ability to effectively manage pricing (using forms of reverse price adjustment) in cases of, for example, damaged packaging, expiration or seasonal discounts. Currently, this is an effective mechanism for reducing the cost of medicines for patients.
Following the discussion, the meeting participants agreed to submit joint proposals for amendments to regulatory acts as soon as possible to prevent these risks and maintain the stability of market operators,
Recall
Verkhovna Rada adopted 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 limit of 8% for distributors and representative offices of foreign pharmaceutical companies. Available at according to estimates by economic expert Serhiy Lyamets, state regulation of drug prices and 8% markup limit 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 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.