Minister advocates for ongoing efforts in regulating reasonable drug costs
Georgia's Health Minister, Mikheil Sarjveladze, has made it clear that he is committed to addressing issues of excessive pricing and unfair competition in the pharmaceutical sector. This commitment is demonstrated by the recent fines imposed on four pharmaceutical companies for abusing their dominant market position and imposing unfair prices[1].
The fines, totalling 560,000 GEL, were the result of an investigation into the pricing practices of these companies. The investigation revealed markups between 1,000% and 3,000% compared to import prices, which were considered a breach of fair pricing regulations in the pharmaceutical sector[2].
Minister Sarjveladze's comments indicate a continued focus on ensuring fair pricing in the pharmaceutical sector. He has expressed concerns about the lack of competition and artificially high prices in the market, and has stated that the Ministry will be "irreconcilable" in cases where unfair prices are offered to patients[3].
In the future, Sarjveladze has proposed strengthening the reference pricing system as a means of improving competition and affordability in the pharmaceutical market. He believes that while reference pricing has improved competition for necessary medicines, risks still remain[4]. To address these risks, the Minister has stated that law enforcement or relevant agencies will be involved wherever unfair prices are offered to patients.
The Minister's comments emphasize the importance of fair pricing in the pharmaceutical sector. He believes that these fines show the need for current efforts to ensure fair pricing, and has stated that the fines are intended to deter similar violations of competition laws in the future[1].
In addition to the immediate enforcement against excessive markups, Georgia has implemented various health financing reforms aimed at improving access to medicines and reducing patient out-of-pocket expenses. These reforms include expanding drug reimbursement plans and introducing external reference pricing schemes[2].
As such, the future steps involve ongoing enforcement against excessive markups supported by broader regulatory and pricing frameworks to improve competition and affordability in the pharmaceutical market as communicated by Minister Sarjveladze[1][2].
- The Georgian Health Minister, Mikheil Sarjveladze, has expressed his intention to improve the pharmaceutical sector's competition and affordability by strengthening the reference pricing system.
- Minister Sarjveladze's focus on fair pricing extends beyond immediate enforcement against excessive markups, as he also supports broader regulatory and pricing frameworks.
- Georgia's general news frequently covers the Minister's efforts to ensure fair pricing in the pharmaceutical sector, including the recent fines imposed on four companies for unfair competition and excessive pricing.
- Addressing policy-and-legislation issues related to the healthcare-and-wellness sector, particularly in terms of medicare, will be crucial in ensuring accessible and affordable therapies-and-treatments for patients in Georgia.
