Govt restricts supply of medicines to one distributor to prevent pharma market monopolization

The Cabinet of Ministers has banned the supply of one drug to one distributor in an amount exceeding 20% of the total net income from the sale of these medicines for the previous year.

According to the Ministry of Health, the government introduced these changes by a corresponding resolution to the licensing conditions.

According to them, the sale of a finished medicine by manufacturers/importers to one distributor entity in amounts exceeding 20% is permitted only if other business entities have not provided their applications for the purchase of the entire volume of finished products from this manufacturer/importer.

For example, when there are no applications for the purchase of medicines, or when the number of distributors with whom the manufacturer/importer has concluded an agreement is insufficient to ensure the purchase of the entire volume of medicines, or on the date of submission of the application for the purchase of a medicine by the manufacturer/importer, all submitted applications from other distributors have been satisfied.

"Such regulation is designed to prevent monopolization of the pharmaceutical market, create equal conditions for the participation of medium and small distributors, and contribute to the formation of a competitive environment. As a result, this should have a positive impact on the availability and fair price of medicines for Ukrainian patients," the ministry noted.

The requirements for licensing conditions will come into force two months from the date of publication of the government resolution.