MP: New restrictions on the pharmaceutical market may lead to shortage of medicines and shadow market

Administrative and command methods of regulating drug prices implemented by the Cabinet of Ministers of Ukraine can lead to a shortage of drugs and the growth of the shadow market. This was stated by Nina Yuzhanina, a member of the Verkhovna Rada Committee on Finance, Taxation and Customs Policy, commenting on the new government decree that will come into force on March 1, UNN reports.

“The issue of access to medicines is very important and urgent, but it will not be possible to achieve a positive result using administrative and command methods. [It will be “as usual” – the result will be a shortage and  the growth of the shadow market,” Yuzhanina wrote.

She reminded that on March 1, 2025, the Cabinet of Ministers’ Resolution No. 168 of February 14, 2025, which sets restrictions on supply, sales and retail markups for all medicines, and not just for certain categories, as it is now, will come into force.

According to the document, the maximum markup for suppliers will be 8%. For pharmacies, the maximum markup is 35% for OTC drugs, and 10% to 25% for prescription drugs and those included in the National List of Essential Medicines, depending on the price.

In addition, the ban on marketing services from manufacturers makes it impossible to provide discounts for retailers. 

In addition, the State Service of Ukraine for Food Safety and Consumer Protection resumes scheduled and unscheduled inspections of wholesalers and pharmacies in the area of price control.

Recall

Verkhovna Rada adopted in the second reading the draft law No. 11493 on 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.

Economic expert Serhiy Lyamets estimates that state regulation of drug prices and an 8% markup limit could 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 has not ruled 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.