Health Ministry: “artificial increase” of medicine prices “unacceptable”

The Georgian Health Ministry on Tuesday said large pharmacy companies “artificially” increasing prices on medicines not yet covered by reference price policy was “unacceptable”.

The Ministry said the medicines were being sold with 3,000-, 2,000- and 1,000-percent price increases - 32 times more expensive compared to their import prices - and noted the drugs were had “almost the same price” in large pharmacy chains.

It added the “facts of excessive pricing and price collusion” raised “reasonable suspicions” there had been an “unfair agreement” between the companies and “improper use of dominant [market] positions”.

The body said the sector was “harming citizens” with the “unfair prices and unhealthy competition”, and added it would submit “all the necessary documents” to the National Competition Agency to study the issue.

It further explained the Government would set “fair” reference prices on medicines to prohibit their sale with increased prices.