26.Jul .2021 13:30

Lari Depreciation Leads To Higher Medicine Prices – GHG

Lari Depreciation Leads To Higher Medicine Prices – GHG
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Nikoloz Gamkrelidze, Head of Georgian Healthcare Group (GHG) declares, that the main reason for the increase in medicine prices is not the profit margin of pharmacies, but the depreciation of GEL exchange rate. He notes that "demonization" of pharmaceutical companies in this direction is quite dangerous.

At the same time, Nikoloz Gamkrelidze notes that the state can introduce other mechanisms to increase access to the medicines.

"We know that the availability of medicines is very important, but we also know how the medicine price is formed. It is very dangerous to demonize the sector without going into the content. The main reason for the medicine price increase is not the profit margins of pharmaceutical companies, the main reason for this is the depreciation of GEL. We are an import-dependent country. More than 90% of medicines is imported.

This process is directly tied to the devaluation and there is a double-digit deification in the country for the last 3-4 years. Regulation is always possible, but what do we get by regulation? I do not mean that access to the medicine should not be increased, but there are other mechanisms for this, even a mechanism of state involvement. When the state is a guaranteed buyer, it will get much better terms from the drug supplier," - said Gamkrelidze.