The Parliament of Georgia’s Temporary Commission studying the pricing structure of food, medicines and fuel has begun discussions on the pharmaceutical market, focusing on pricing mechanisms and sector operations.

According to the Parliament, the session was held with the participation of both local and international pharmaceutical companies, including GMP, Aversi-Rational, Biopharma, Biochempharma, JMF, Berlin Chemie / Menarini Distribution Georgia, and Novartis.

Commission Chairman Shota Berekashvili stated that the sector is regulated and operates under supervision. He noted that the reference pricing program, introduced in 2023, is now being evaluated.

The commission aims to assess the medicine price formation chain, price dynamics over the past two years, and the effectiveness of the reference pricing system.

Company representatives answered questions related to mark-ups, supply management, competition, and price differences between generic and original medicines.

Deputy Speaker Nino Tsilosani questioned why medicine prices were significantly higher before the introduction of reference pricing. She suggested that companies had previously maintained higher profit margins at the expense of consumers.

Commission member Dimitri Khundadze noted that, in Georgia, the price difference between generic and original medicines is often minimal, unlike in many other markets where generics are significantly cheaper.

Pharmaceutical companies stated that their direct influence on pricing is limited, emphasizing that prices are largely determined by market conditions and competition.

Summarizing the meeting, Berekashvili said the reference pricing model is functioning effectively and does not create major difficulties for local manufacturers. He suggested that the system could be expanded without causing negative market reactions.

He also highlighted the export potential of local pharmaceutical production, the effective functioning of GMP certification standards, and a simplified pricing chain consisting mainly of manufacturers and distributors, without additional intermediary layers.

The commission plans to continue consultations with pharmaceutical companies in the coming sessions.