Georgia’s Ministry of Health says reference prices will be introduced for about 700 more medicines as part of the next stage of the pharmaceutical reform launched in 2023.
The ministry says the changes follow recommendations made by the Parliamentary Temporary Commission on Price Studies and will cover anti-inflammatory drugs, medicines used to manage cardiovascular diseases, and other frequently used pharmaceutical products.
Under the reference price reform, the state sets a maximum price limit for medicines, above which their sale is prohibited. Reference prices have already been introduced for more than 7,500 medicines.
The Ministry claims the reform has reduced pharmaceutical prices by an average of 40%.
The Minister of Health, Mikheil Sarjveladze, met representatives of the pharmaceutical sector to present the planned changes. Companies will be able to submit their opinions to the ministry over the next two weeks before a final decision is made.
Sarjveladze stated that introducing reference prices for additional medicines will further reduce costs and improve access to frequently used drugs for citizens. He added that the process will continue and more medicines will be included in the future.
A large section of the Parliamentary Commission’s report focused on Georgia’s pharmaceutical market, stating that reference pricing introduced since 2023 has had a decisive impact on reducing medicine prices.
The report says pharmacy chains in Georgia have profit margins ranging from 22% to 30%, compared to 25% to 35% in Eastern European countries.
The Commission also noted that large pharmaceutical companies in Georgia are often involved in importing, manufacturing, and retail sales simultaneously, allowing them to distribute costs across the supply chain.
