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Amendments to the Mechanism of State Regulation of Prices for Medicines Came into Effect

The Resolution of the Cabinet of Ministers of Ukraine "On Amending Resolution of the Cabinet of Ministers of Ukraine No. 862 as of November 9th, 2016" No. 1006 as of December 28th, 2016 came into effect on December 31st, 2016.

The document amended Resolution of the Cabinet of Ministers of Ukraine No. 862 as of November 9th, 2016, and revived state regulation of supply and sale and retail markups on medicinal products and medical products provided by paragraph 1 of Resolution of the Cabinet of Ministers of Ukraine No. 955 as of October 17th, 2008.

Paragraph 1 of Resolution of the Cabinet of Ministers of Ukraine No. 955 provides for the maximum supply and sale markups not exceeding 10% attached to the gross wholesale price, including taxes and duties, and the maximum trade (retail) markups not exceeding 25% attached to the purchase price, including taxes, for all medicines included in the National List of Essential Medicinal Products. In addition, the paragraph established the maximum supply and sale markups and maximum trade (retail) markups for medicines procured in whole or in part at the expense of state and local budgets, at the level of 10%.

However, Resolution of the Cabinet of Ministers of Ukraine No. 862 abolishes the above markups since January 1st January 2017.

However, 21 INPN from the list fixed by recent Resolution of the Cabinet of Ministers of Ukraine No. 863 as of November 9th, 2016 still bear maximum supply and sale markups of 5%, and retail markups of 15%, including taxes and duties.

Re-enactment of paragraph 1 of Resolution of the Cabinet of Ministers of Ukraine No. 955 will allow for transition from the old regulation to the new system of establishing the maximum gross wholesale prices. In particular, sale of remainders of the medicinal products included in the INPN list, the value of which is refundable (see Resolution of the Cabinet of Ministers of Ukraine No. 863 as of November 9th, 2016), supplied to the pharmacy chain at gross wholesale prices exceeding their maximum level, is allowed by February 1st, 2017.

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