National Competition Agency investigating pharmaceutical companies after “sharp increase” in prices
The Competition Agency said it was investigating “possible abuse of dominant position” in the market and “possible agreements restricting competition” in its inquiry. Photo: Nino Alavidze/Agenda.ge
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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.
The Georgian Government’s Interagency Commission has been authorised to set wholesale prices for select pharmaceutical products by Prime Minister Irakli Garibashvili, in the latest move designed to effect a reduction of domestic costs of medication.
Mamuka Mdinaradze, the head of the ruling Georgian Dream party in the Parliament, on Monday pledged support for the Government's forthcoming bill for regulating high prices on various products in the country.
The average cost of about 800 medicines for chronic and oncological diseases will be reduced by 40 percent with the introduction of the reference pricing system starting today, Georgian Prime Minister Irakli Garibashvili announced on Wednesday.
Georgian Prime Minister Irakli Garibashvili on Monday criticised oil and food importers in the country for “very high profits” facilitated through prices added to the “real cost” of the products, and instructing several ministers to set up a working group to negotiate a reduction.
Malkhaz Dolidze, the Head of the Georgian Bread Manufacturers Union, on Tuesday said prices of the product in Georgia were not expected to increase, and added efforts were actually being made to bring them down.
The results and challenges in consumer rights protection after the adoption of the Consumer Protection Law were presented by Irakli Lekvinadze, the Chairman of the Georgian National Competition Agency, in his report to lawmakers on Thursday.
The Competition Agency of Georgia on Monday said it had solved 109 issues related to protection of consumer rights out of 194 complaints it received between November and March.
Georgian Health Minister Zurab Azarashvili on Monday said the Ministry would finance "year-long medication needs" for oncology patients and was in talks with drug manufacturers.
Georgia’s National Competition Agency on Thursday announced it had reprimanded a Tbilisi-based veterinary clinic for failing to provide its services in the Georgian language to a customer, and ordered the business to remedy the shortfall following the latter’s complaint.
Georgian health authorities confirmed the first cases of Crimean-Congo hemorrhagic fever in the country this year on Tuesday, with eight confirmed patients admitted to medical facilities with the condition.
The Regulation Agency for Medical and Pharmaceutical Activities of Georgia has “proactively” registered 563 medicines to simplify their import for domestic companies, the Ministry of Health announced on Friday.