Government has cancelled mark-ups on medicines

On March 6^th, 2019, in order to decrease administrative pressure on business, eliminate excessive interference of the government in economic processes, develop competition and deregulation in medicines pricing, the government adopted Resolution of the Cabinet of Ministers of Ukraine “On Amendments to Resolution of the Cabinet of Ministers No. 955 as of October 17^th, 2008” No. 184 (hereinafter – Resolution). In particular, the Resolution has cancelled maximum supply and sale trade-mark on medicines procured for state and local budget funds.

Previously the mark-up could not exceed 10% accruing to ex-factory price of medicines inclusive of tax and duties.

Since expenditures born by producers of medicines were not covered by 10% mark-up, trade in such products was loss.

Furthermore, having analysed mechanism of state price regulation of medical devices in EU member-states, the Ministry of Health did not detect any tools of the corresponding regulation of medicines procured for budget funds.

Thus, it is expected that cancellation of mark-up on medicines will create grounds for development of competition on the market, which in its turn will expand the range and increase product quality during procurement.