January 29, 2025
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Economy

The American Chamber of Commerce called for a balanced approach to the regulation of the pharmaceutical market

The American Chamber of Commerce called for a balanced approach to the regulation of the pharmaceutical marketA representative of the American Chamber of Commerce commented on the Ministry of Health’s proposals for changes in the regulation
of the pharmaceutical market. He described the specifics of drug regulation in the EU and called for a balanced approach in
Ukraine.
”, — write: unn.ua

Borys Danevych, Co-Chair of the Healthcare Committee of the American Chamber of Commerce in Ukraine, commented on the changes in the regulation of the pharmaceutical market proposed by the Ministry of Health. He thanked the Ministry of Health for a more balanced approach compared to previous proposals, but drew attention to several important aspects that need to be finalized, UNN reports.

Details

On Friday, at a meeting of the Verkhovna Rada Committee on National Health, the Ministry of Health presented a concept of changes in the regulation of the pharmaceutical market. The Ministry’s proposals included reducing the price of medicines through electronic bidding between manufacturers, limiting the amount of discounts, and banning retro bonuses. However, not all proposals were supported by the MPs and those invited to the EBA meeting.  As a result, the committee agreed to develop a new draft law that would systematically regulate the functioning of the pharmaceutical market, ensuring the availability of quality medicines for Ukrainians.

Bonis Danevic emphasized that in the European Union, commercial practices, pricing and marketing agreements are not regulated at the European level. Such issues are resolved by each country separately, and the EU focuses on advertising regulation and competition control.

The European Union does not have a proper promotion practice in the sense that it has been discussed today. Namely, in terms of commercial practices, pricing, marketing agreements. This is not the level of the European Union. The EU regulates advertising, including advertising for healthcare professionals, but not such practices. This is because the level of pricing is the level of each individual EU member state. At the same time, the EU regulates competition and protection of economic competition in great detail. The European Commission is the main regulator and enforcer of economic competition, and national competition authorities are the key guarantors that commercial practices in the markets of producers, distributors, retailers, and their interaction with each other are proper and comply with the law. We believe that this is a very important example for Ukraine, and the Antimonopoly Committee should perform such functions so that we do not have to establish rules by law that do not exist in the EU,

He emphasized that Ukraine already has low prices for medicines compared to EU countries. In Europe, medicines can be bought cheaper than in Ukraine only under the reimbursement program (partial compensation by the state for the cost of medicines prescribed by a doctor).

Danevych also noted that retroactive price adjustments or “retro bonuses” are appropriate. For example, in cases where it comes to the disposal of expired medicines or recall of drugs. He called for retaining such mechanisms in the new legislation.

In general, the American Chamber of Commerce supports further dialog with the Ministry of Health and advocates a balanced approach to the development of new legislative initiatives.

We are ready and supportive of further discussion, are very cautious about the rapid development of new legislative actions, and ask that we continue to engage in dialogue,

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