The Parliament discussed in III reading and endorsed with 75 votes to 1 the amendments to the law on Medicine and Pharmaceutical Activity, envisaging the admission of the reference price formation at the legal level. The Draft was introduced to the plenary session by the First Deputy Health Minister, Tamar Gabunia.

The reference price envisages the establishment of an upper limit on the price of medicines, above which the sale of the medicine on the market will not be allowed.

According to her, the reference price is well-approved in 36 European countries. The changes also apply to other issues, including the wholesale distribution of medicines without holding GDP and GMP certificates; the absence of the certificates is subject to sanctions. The establishment of the reference prices requires enforcement mechanisms and thus, respective changes are to be introduced to other Laws, including the Law on Control of Entrepreneurial Activity, Law on Enforcement Proceedings, and the Tax Code.

As Tamar Gabunia clarified, the reference prices shall apply to about 1000-1200 types of medicines at the first stage, but the Government intends to gradually extend the application within reasonable terms.

“The implementation of this model will be successful, ensuring the improved access to medicines for the population of Georgia and ensuring that they have the opportunity to protect their health, especially during chronic diseases and malignant tumors”, - she added.