Georgian PM says “cartel deals” revealed between pharmacies “risk accompanying rapid growth”

Georgian Prime Minister Irakli Kobakhidze on Tuesday said the “rapid growth” of the domestic healthcare sector had led to “cartel deals” and “flawed processes” between pharmacy companies in the country, in comments to cases highlighted by the Health Ministry and confirmed by the Competition Agency.

The PM made the remark after he was asked about a social media message posted on Monday by Zurab Azarashvili, the former Health Minister, who mentioned antitrust deals made between pharmacy businesses. Four companies were fined ₾53 million ($20 mln) in December for price-fixing on oncology medicines funded within a state programme.

• Competition Agency fines 4 pharmaceutical companies $19mln for antitrust price-fixing

Kobakhidze emphasised the need for “constant attention” to avoid the “flawed processes”, and said in the social media message Azarashvili was highlighting difficulties he had faced in his former position.

He worked to overcome the problems that arose. The work on these issues will continue to progress. From my perspective, there were communication problems that needed to be addressed. Therefore, I focused on improving communication. As for the combating cartel transactions, [the work] will be continued in the same mode, and our goal is to make this policy even more effective”, the PM said.

• PM cites “problems in management communication” in Health Minister resignation

He also expressed his gratitude to Azarashvili for taking “many important steps” to ensure the healthcare sector in Georgia developed “in the right direction” and added the Government would continue to “actively work towards the same goals”. 

Azarashvili resigned last week after a spell in the position since 2021, when he replaced Ekaterine Tikaradze.