Pursuant to the Order of the Ministry of Healthcare of Ukraine No. 145 dd. 29.02.2012 a working group was established to study the mechanism of the introduction of reference prices for medicinal products and medical devices to implement a system of external and internal prices for medicinal products and medical devices.

On March 20, 2012 the CMU held a meeting to discuss, among others, the issues regarding reference pricing of medicinal products in Ukraine. Thus, the meeting addressed issues concerning the draft resolution of the Cabinet of Ministers on the introduction of reference prices; the possible introduction of a reimbursement mechanism for medicinal products; development of government passports for public procurement programs, starting from vaccines and ending with ambulances and medical equipment.

In addition, two pilot projects to introduce reference prices for medicinal products to treat hypertension and diabetes have been scheduled for May and June this year.

The first step to establish reference prices was the Draft Resolution of the Cabinet of Ministers "On conducting a pilot project regarding the introduction of a state regulation system of medicinal products prices for patients with essential hypertension" submitted for public discussion on 30.03.2012.

The Draft Resolution provides that the pilot project will be extended to generic medicinal products registered in Ukraine and will be conducted till 31.12.2013. The project also provides for a list of international nonproprietary names, forms and set daily doses of medicinal products to which the pilot project applies.

The Draft Resolution provides that a wholesale markup of 10% and a retail markup of 25% may be added to the price of medicinal products to which the pilot project extends. In addition, such medicinal products may be sold on the territory of Ukraine only after the price is registered with the Ministry of Healthcare.

According to the above draft, the Ministry of Healthcare and the Ministry of Economic Development and Trade are obliged to set and publish comparative (reference) prices for medicinal products of domestic and foreign production, to which the pilot project applies, before 01.06.2012.

However, many questions remain open for the pharmaceutical market concerning the introduction of such a mechanism as well as on whether the system of reference prices will be one of the efficient key factors in market price regulation.

It should be noted that the Resolution No. 340 dd. 25.04.2012 "On Approval of the Pilot Project regarding the Introduction of a System of State Regulation of Prices for Medicinal Products for Patients with Essential Hypertension" previously passed by the Cabinet of Ministers was published on April 26, 2012. The Resolution entered into force on April 26, 2012.

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