National Competition Agency investigating pharmaceutical companies after “sharp increase” in prices

The Georgian National Competition Agency on Monday said it had started inspecting four companies in the Georgian pharmaceutical market following “sharp increase” by them in prices of medicines for chronic and oncological illnesses.

The Agency said it was investigating “possible abuse of dominant position” in the market and “possible agreements restricting competition” in its inquiry, which will give the companies in question the opportunity to “present their positions or explanations” for the price hikes.

The body also said the investigation had started following statements made by the Ministry of Health of Georgia on “compatibility of actions of pharmaceutical companies with the competition legislation”. 

In comments illustrating the Agency’s work, it said it had issued 13 recommendations for improving the competitive environment in the pharmaceutical market last year. “The process for implementation of the given recommendations is ongoing, with seven [...] fully or partially implemented”, it added.

It also noted the start of imports of medicines from Turkey in 2022 had resulted in better access to quality medicines on the domestic market.

“As a result of the increased financial access, consumers made savings of approximately ₾250 million ($97.11mln) in the retail market. [Following the introduction of] reference pricing and the implemented or ongoing reform in the market, a significant increase of the mentioned index is expected”, the Agency added.