Georgian PM discusses possible price reductions for medicines, pharmacy products

Georgia’s Prime Minister, Irakli Kobakhidze, on Wednesday said that while business should remain free and pricing largely determined by market principles, the government must also consider the social dimension in the pharmacy sector to protect public interests.

Speaking at a government coordination commission meeting on food and pharmacy prices, Kobakhidze noted that the issue of medicine and pharmacy costs remained a priority for the population. He said the government aimed to explore with industry representatives the potential for price reductions.

“Regarding pharmacy networks, we went through a similar process in 2022 when reference prices were set, which led to concrete results for certain medicines. We want to assess whether this list can be expanded. In pharmacies, we also see significant price differences for other products. Compared to European prices, the difference can be 35-40 percent, including in countries such as the UK and France. We are examining whether these high prices correspond to the logic of the supply chain,” Kobakhidze said.

He stressed that while business was free and pricing should follow market principles, a social component was present in pharmacies. “As the government, we are responsible for ensuring that the social interests of our population are protected. Where there is room for improvement, we will act,” he added.

The meeting, held in a discussion format, was attended by representatives from 25 pharmaceutical companies. This week, the government coordination commission will also hold a meeting on fuel prices.

Government Administration Head Levan Zhorzholiani said that the commission’s aim is to reduce the financial burden on citizens as much as possible. “At the meeting with medicine and pharmacy network representatives, we agreed that price reductions are possible. This will require work and possibly regulatory changes, in close coordination with the Ministry of Health. Our goal is to ease the financial pressure on citizens and reduce social costs wherever possible,” the official added.