Pharmacy Companies Association Chair: reference prices to reduce costs by 35-40 percent on average

The upcoming introduction of the reference prices system on medical drugs across Georgia is expected to reduce average costs for products by 35 to 40 percent, Irakli Margvelashvili, the Chair of the Association of Pharmaceutical Companies Representatives, told local media on Tuesday. 

Margvelashvili was commenting on the Government initiative that is set to come into force next month and prohibit selling of medicines above set reference prices, in the latest phase of efforts to reduce domestic costs for medical drugs.

The Association Chair said the prices were expected to gradually decrease to the figure by 2030, with the figures also dependent on price trends on individual medications, and noted over 1,300 drugs for chronic and oncological diseases had been included in the initial list to be sold through reference prices, with about 800 in “active circulation” on the market.

The reference price regulation comes into force on February 15, with the initial list of drug categories to be later expanded to other types. The initiative aims to “increase access to quality medicine”, ensure “fair prices” and a “competitive and transparent pharmaceutical market”, the government administration said.