“Business is free, must remain free, and price formation should essentially be based on free market principles; however, in the case of pharmacies, a social component also comes into play, which is a matter of concern for us. As the government, we are responsible for ensuring that the social interests of our population are protected to the greatest extent possible,” stated Irakli Kobakhidze, Prime Minister of Georgia, at today’s meeting of the Cross-Government Coordination Commission on food prices, which was attended by the representatives of pharmaceutical companies.

The Head of Government of Georgia noted that the issue of medicine and pharmacy prices is of great importance to the population. Accordingly, it is a priority for the government to engage with sector representatives to explore whether there is scope for reducing prices.

“As for pharmacy chains and pharmacies in general, we have already gone through one process in 2022, when reference pricing was introduced, which yielded results in many areas-prices for specific medicines and certain groups of medicines were genuinely reduced. We would like to discuss whether there is room to expand this list.

Additionally, other products are also sold through pharmacy chains, where we have observed a quite significant price disparity. When comparing European prices, in many cases, there is a 35-40 per cent difference compared to countries such as the United Kingdom, France, and others. This raises questions about whether a logical supply chain justifies such high prices. Business-to-business transactions should be free and remain free, with price formation primarily based on free market principles. However, in the case of pharmacies, a social component also comes into play, which is a matter of concern for us.

As the government, we are responsible for ensuring that the social interests of our population are protected to the maximum extent possible and wherever there is room for improvement, we must make every effort to address it. This is precisely what underpins our initiative in all areas, including the pharmacy sector,” noted Irakli Kobakhidze.

According to information from the Government Administration’s press service, the meeting with representatives of pharmaceutical companies was held in a discussion format and was attended by representatives of 25 pharmaceutical companies.

Later this week, a meeting regarding fuel prices will also be held within the framework of the Cross-Government Coordination Commission.