On September 15, 2023, the Tariff Council adopted a new decision on the regulation of drug prices. Due to the change, there is no longer a uniform pricing policy for drugs.
That is, the upper limit of drugs is determined, and pharmacies can sell drugs at a lower price. But is this decision justified during the time it is applied?
Some medicines have become cheaper
Mushfiq Mammadli, a member of the Health Committee of the Milli Majlis, said that after this decision, cheaper drugs will be able to be brought to the country: after the changes in the legislation “On Medicines” and the relevant decision of the Cabinet of Ministers, the upper limit of drug prices was determined by the Tariff Council. Lower limits will be adjusted according to competition principles. Large companies that import drugs will bring quality-assured and cheaper drugs to the country. It will be relatively easier to import medicines into the country. Thus, it will be possible to lower prices as a result of competition. At the moment, we are observing a decrease in the prices of certain drugs in pharmacies.”
Our problem of missing medicine has been solved
According to the deputy, after this decision, the problem of missing medicines has disappeared: “8-9 months ago, we witnessed that some medicines were not found in pharmacies. Because many drugs are not attractively priced, importing companies were not interested in importing them. But after the changes, we notice that the issue of lack of some drug is no longer on the agenda. We can already find the necessary preparations in the drug market. But we still cannot see the reduction in prices at the level we thought, the expected effect is not obtained. We will probably be able to observe this in a few months. The decrease in prices will lead to further reduction of additional expenses of people.
Ban wholesale companies
Ilgar Huseynli, an expert on social issues, stated that this innovation, on the contrary, will harm pharmacies: “There are no serious changes in the field of pharmacy. This decision will not have a serious impact on the range of drugs or on the return of drugs that were not brought to the market. In the previous decisions, a specific number was placed on the medicine and it was forbidden to sell below and above that price. Now, a few large wholesalers will be able to put other retail pharmacies out of business by setting the price they want in their pharmacy chain. If wholesale companies are prohibited from creating pharmacy chains, then the failure of retail pharmacies in the market can be prevented. Otherwise, this decision will gradually lead to the cessation of activities of small entrepreneurs. Because the financial capabilities of pharmacies are not the same.”
Liberalization of prices is important
According to the expert, there will not be a big difference in drug prices: “There was no big percentage difference between the prices. That’s why we can’t say that people are in for serious surprises regarding the price reduction of medicines. Because in reality the price reduction does not happen. But it is important to liberalize prices in the drug market.”
“People have the right to know the price”
Aydın Aliyev, associate professor of the Department of Pharmacology of Azerbaijan Medical University, pharmacologist, noted that people should be aware of this decision and demand their right from pharmacies: “There are pharmacies that sell lower than the specified price. This decision is good for pharmacies from an entrepreneurial point of view, because people turn to them more. Citizens should ask at the pharmacy what price the Tariff Council has set for the medicine they buy. People should know the lower and upper limits of drug prices. But citizens are unaware of the decision and do not ask anything. Citizens should use the decision of the Tariff Council.
There is a decision, but it is not implemented
We also conducted a survey among pharmacies in different parts of the city to determine how effective the new law is. During the survey, it was revealed that none of the pharmacies, both in the center of the capital and on the outskirts, knew about the innovation. Pharmacies belonging to private companies reported that the price is sent to them by their subordinate enterprise. Prices in private pharmacies are determined by warehouses. According to the information provided by the depot pharmacies, they sell based on the prices accepted by the Tariff Council. (“Kaspi” newspaper)
