Reduction of Medicines Prices: Whether the Ministry of Health and the Radutsky Committee will be able to accomplish the President’s task

According to the Minister of Health Viktor Lyashko, statistics show that market mechanisms do not work. And that is why regulation had to be strengthened.

Political scientist, director of the Center for Civil Society Research Vitaliy Kulik in the column for “Censor.net” states that it cannot be argued that the regulation of the pharmaceutical market will necessarily lead to a total shortage of drugs. The situation in the pharmaceutical industry is ambiguous and needs clarification in order for everyone to make their own conclusions.

The Minister cites the following figures: the increase in prices for Ukrainian production by 26-131%, the markings for “own trademarks” of pharmacy networks are 50-300%. I think anyone sees a constant increase in prices in pharmacies. It is enough once a year to get sick and buy colds. And you will feel the difference in the cost of medication.

Another reason is the high marketing payments that pharmacies receive for the sale of specific medicines. And this leads to the fact that people buy the more expensive drug instead of the cheaper with the same active substance.

As we can see, the minister claims that there are prerequisites for reducing prices. There would be a desire market. Of course, no one wanted to give up profits even during the war. Six months consultations between officials and market players have given nothing. In particular, in law No. 11493. Therefore, the state had to intervene.

In general, according to the sources of the Kulik, the mechanisms for reducing prices have been several times at meetings with business. The main changes are as follows:

• the markings on medicines are regulated;
• the practice of marketing payments (until the moment of reference prices) is prohibited;
• the prices for drugs in pharmacies have been restored;
• Reference prices, national prices catalog were introduced.

These changes will be detailed in the government’s decisions in the coming days. Several of them are already approved.

In this situation, it really makes sense to impose some restrictions. But those that will allow the market to continue to work. And after the war, these regulation rules may need to be canceled.

And here we approach the key question: is there possible shortage of medication after increasing adjustment?

The market experts with whom the political scientist had a conversation claim that the market of retail is developed, pharmacy networks are competing, we have many manufacturers and importers. Probably competition will intensify, the deficit on the shelves in pharmacies seems to be. Do you think the requirement to have one cheap drug in the pharmacy can lead to a shortage of medication?

Regarding the thesis – foreign manufacturers will leave the market. In part, it can really happen. However, all changes will affect the market for generic medicines (analogues of original drugs), not unique, innovative medicines. Therefore, for example, a company that sells medicines for orphan patients should not undergo any changes.

And another thesis that he would adjust in his previous text. Kulik was not quite correct by defining the reform on the pharmaceutical market as a “reform of Radutsky”. The expert carefully analyzed the statements of the President and news from Bankova. Therefore, the Director of the Center for Research of Civil Society would not say not about the “reform of Radutsky”, but about the reform of Zelensky. A request for reducing medicines and their accessibility is one of the “pain” of society that affects public sentiment. Volodymyr Zelensky tries to intercept this topic from critics and proposes to keep prices available to ordinary citizens through state regulation.

It does not matter to people who and what marks on the market. It is important for them to buy available and quality drugs in pharmacies during the war.