Cabinet's interference in marketing agreements between pharmaceutical manufacturers and pharmacies threatens competition and industry development – American Chamber of Commerce

Government intervention in marketing agreements between pharmaceutical manufacturers and pharmacies can destroy competition and hinder market development. This was emphasized by the American Chamber of Commerce, which for the second time in a month has to explain the same thing, reports UNN.

Thus, Kuzminykh registered in the Verkhovna Rada a draft law №13657, which he presented as one that would prevent drug price increases. In it, the MP proposed to grant the government the right to set a maximum percentage of marketing payments between pharmacies and drug manufacturers.

However, almost a month ago, on July 30, Serhiy Kuzminykh personally heard the opposite position from the American Chamber of Commerce and other pharmaceutical market operators at a working group meeting on legislative regulation of the maximum marketing size for medicinal products, which took place… under the chairmanship of Serhiy Kuzminykh.

At that time, representatives of the American Chamber of Commerce directly warned: the percentage of marketing agreements is inconsistent with European practice and threatens the competitive environment. But, it seems, at that time MP Kuzminykh listened more for show than for understanding. Because a few weeks later, a draft law with the same ideas, against which the Chamber spoke, appeared in parliament.

As a result, everything had to be repeated once again – this time with an official letter, a copy of which is at the disposal of the UNN editorial office. It clearly states: transferring the right to determine the percentage of marketing agreements to the Cabinet of Ministers is dangerous, as it creates risks of monopolization and hinders the development of the pharmaceutical sector.

RecallFrom March 1, 2025, the government banned pharmacies from entering into marketing agreements with manufacturers. This decision was supposed to lower drug prices, but in reality, the opposite happened – the cost of drugs increased. Pharmacies, in turn, lost resources for social programs and network development in villages and frontline territories. The regulation also resulted in the closure of mobile pharmacies that served Ukrainians in frontline territories and in hard-to-reach villages and towns where there are no stationary pharmacies.

The Ministry of Health later admitted: the marketing ban did not have the expected effect. But instead of correcting mistakes, Serhiy Kuzminykh continues to insist that marketing is to blame for expensive drugs, and invents new restrictions.

So, it remains to be hoped that at least on the second try, the people’s deputy will understand: the path he is lobbying for does not lead to lower prices, but to even greater chaos in the market. And the draft laws he initiates are not for the people, but for someone else. Perhaps for the protection of the interests of big business.