Up to 40% Cheaper: Which Ukrainian Medicines Will Become More Affordable.

Price Reduction on Medicines in Ukraine

President of the 'Ukrainian Medicines Manufacturers' Association' Petro Bahrii announced plans to reduce prices on 200-250 types of medicines in Ukraine. According to him, this discount will vary for different medicines.

'Currently, we are working on reducing the price for about 200-250 types of medicines. The discount will not be uniform for all - some prices will drop by 30%, others by 40% or 20%. It will depend on the market situation,' Bahrii explained.

According to Bahrii, the formation of prices for medicines is influenced by many factors such as the state of war, logistics issues, cost of raw materials, dependence on the exchange rate, energy prices, and the need to ensure stable operation of enterprises. Bahrii also emphasized the importance of marketing agreements in the pharmaceutical market.

Currently, there are 118 licensed manufacturers of medicines operating in Ukraine, ensuring high competition in the generic segment of the market. Regarding distribution, there are over 350 wholesale licenses, but in fact, two large distributors control 80% of the market. Analysis has shown that distributor margins usually do not exceed 10-12%.

Bahrii also noted that five pharmacy chains control 75-80% of the retail market with high competition among them. However, the problem is that manufacturers find it difficult to compete for shelf space in pharmacies. 'This is where so-called marketing agreements arise: to get on the pharmacy shelf, one has to pay, and this leads to price increases, causing patients to overpay,' Bahrii stressed, adding that the situation needs to be regulated by the state.

Regarding the President's initiative to lower prices on the 100 most commonly used medicines, Bahrii said that the list includes medications that are in high demand, even if they are common medications, such as ascorbic acid.

Earlier, the Government expanded the list of medical goods that hospitals can purchase through the Prozorro Market.