The Government has regulated markups on medicines and banned the practice of marketing payments

The Cabinet of Ministers of Ukraine has adopted amendments to the amendments to the Resolution of the Cabinet of Ministers of Ukraine dated October 17, 2008 No. 955 "On Measures to Stabilize Prices for Medicines and Medical Devices".

Thus, pursuant to the decision of the National Security and Defense Council of Ukraine dated February 12, 2025 "On Additional Measures to Ensure the Availability of Medicines for Ukrainians", enacted by Presidential Decree No. 82/2025, the issue of markups on medicines, prohibition of any marketing services for their promotion and resumption of inspections by the State Service of Ukraine on Food Safety and Consumer Protection in terms of price control in pharmacy chains is regulated.

"The government is focused on strengthening our defense capabilities, restoring the economy, increasing the production of our own weapons and supporting Ukrainian families. One of the key areas of this support is affordable medicines and quality medical services. Prices for medicines, which have increased significantly over the past three years, will be reduced in March," said Prime Minister of Ukraine Denys Shmyhal, opening today's Government meeting.

"Until now, the state has regulated only the markups for medicines included in the National List or procured with public funds. At the same time, the pharmaceutical market of Ukraine has established a well-established practice of marketing payments between manufacturers (importers) of medicines and chain pharmacies, which have started to provide primarily promotion services. This leads to the fact that Ukrainians often buy a more expensive drug when there is a cheaper analog with the same active ingredient on the market, but the pharmacy is not interested in selling it. OTC drugs deserve special attention. Due to the lack of regulation of margins for OTC drugs, Ukrainian consumers find themselves in a situation where a pharmacy can unreasonably make tens or even hundreds of percent markup and offer them first. Analytical data clearly shows that the manufacturer's price for medicines purchased by hospitals is significantly lower than the prices for similar drugs in pharmacies. Consumers actually overpay for the same drugs from similar manufacturers when they buy them directly from pharmacies. The changes adopted today will stop this practice, which primarily affects people's wallets. We have a clear task set by the President of Ukraine - a tangible reduction in drug prices. We are working on its implementation," said Minister of Health of Ukraine Viktor Lyashko.

The approved amendments, in particular, stipulate that starting from March 1, 2025, the maximum supply and sales markups charged by distributors of medicines to the wholesale prices for all medicines may not exceed 8% (except for certain exceptions).

Additionally, regressive marginal trade (retail) markups to the purchase prices of prescription drugs are set at 10% to 25% depending on the cost of the drug.

The maximum trade (retail) markups for OTC medicinal products procured from sources not prohibited by the legislation of Ukraine, except for the state and/or local budgets, should not exceed 35% of the purchase prices.

Until now, such regulatory measures have been applied exclusively to medicines from the National List and to medicines procured in whole or in part with budgetary funds, as well as reimbursed under the "Affordable Medicines" program. Together with other measures aimed at regulating the pharmaceutical market, this will reduce the price of medicines for the end consumer in the near future.

Also, starting from March 1, 2025, a ban on the provision of marketing services, medicines promotion services, information and other services related to the sale of medicines to the end consumer is established until the Cabinet of Ministers of Ukraine introduces a separate reference of wholesale prices for all medicines and develops clear rules for marketing.

In addition, starting from March 1, 2025, state supervision (control) over compliance by pharmacies and distributors with the requirements for the formation, establishment and application of state regulated prices will be resumed. Prices in pharmacies will be checked by the State Service of Ukraine on Food Safety and Consumer Protection.

As areminder, on February 12, 2024, the National Security and Defense Council of Ukraine adopted a decision "On Additional Measures to Ensure the Availability of Medicines for Ukrainians", which contains a clear step-by-step plan to reduce and stabilize prices for medicines. Ukrainian pharmaceutical manufacturers have already declared a 30% reduction in selling prices for the 100 most popular medicines starting March 1.