Date: 4 months ago   Category: Economy

Ukraine will close drugstores and drugs

In Ukraine large-scale reduction of the pharmaceutical market which, according to experts, will lead to rise in price of medicines on average for 15% prepares. Also dollar exchange rate has negative effect on the cost of drugs.

As write "Vesti", next week the committee of BP on health care plans to consider the bill which, according to authors, is designed to liquidate network monopolies in the pharmaceutical market. In particular, the document limits minimum admissible distance between drugstores of 500 m instead of the existing 140 m. Also it is offered to liquidate pharmacy chains.

to Certain businessmen will allow to keep one drugstore, and to the companies - no more than four and only within one area. Eight drugstores will allow to open to firms which are engaged in production of drugs, and in the principle to found drugstores will allow only people with medical education.

Authors of the bill claim that he first of all is directed to destruction of monopoly in pharmaceutical business. In turn, experts of the market express fears that everything can occur in accuracy to on the contrary.

"First, will decrease availability of drugstores to disabled people as the law will limit distance between drugstores to 500 m instead of the existing 140 m. Secondly, the competition among retail drugstores will decrease, it will lead to the fact that prices of medicines will be regulated not by a market margin in 10-12% but only state - 25%. So on average quotations will rise by 13-15%", - note in "All-Ukrainian pharmaceutical chamber".

Moreover as the economist Andriy Novak notes, an initiative of deputies contradicts rules of free competition. "The number of drugstores has to be regulated only by demand in the market, but not the bans. Purely from the economic point of view, reduction of number of drugstores will lead to decrease in the competition. And than the competition is higher, at that the prices under pressure of any circumstances grow less", - Novak considers.

However even if not to take legislative initiatives in attention, prices of medicines will continue to grow. Suppliers and drug manufacturers, being afraid of further devaluation of national currency, in advance put the elevated dollar exchange rate in prime cost of drugs.

"As soon as occurs the slightest jump of a course, producers right there begin to put in prime cost the elevated rate just in case. "For example, already now some have estimated dollar on 45 UAH. It is connected with a "long" cycle of sales of drugs: from the moment of their import before receiving money there pass about 90 days. That is still nothing happened, and drugs already rise in price. How many will cost dollar on January 1, 2019, nobody knows therefore for fear put as much as possible", - the head of "All-Ukrainian pharmaceutical chamber" Roman Konstantinovsky has told.



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