Price restrictions on over-the-counter drugs to be abolished

Starting April 1, 2025, price restrictions will only apply to prescription drugs, according to a Presidential Decree titled "On Additional Measures for the Accelerated Development of the Pharmaceutical Industry," adopted on January 28.

The decree assigns the Agency for the Development of the Pharmaceutical Industry several new tasks, including:

- Developing the industry for biologically active additives and cosmetics, which involves studying and analyzing the market, localizing production, and assisting enterprises in adopting advanced foreign practices and standards;
- Monitoring and accounting for investment projects at regional pharmaceutical enterprises in collaboration with local governments;
- Digitizing the pharmaceutical industry and implementing information programs.

By the end of 2025, the laboratory at the Center for the Safety of Pharmaceutical Products will undergo the World Health Organization’s prequalification procedure.

Key changes effective from April 1, 2025:

- Limited trade margins will apply exclusively to prescription drugs.
- For drugs with the same composition produced under different trade names by a single manufacturer, the lowest reference price will apply to all these drugs.
- Reference prices in foreign currency, recorded by the Center for the Safety of Pharmaceutical Products, will be automatically revised (without the entrepreneur's application) under certain conditions.

Additionally, a venture fund will be established to finance start-up projects within the pharmaceutical sector. To promote the export of pharmaceutical products, the decree outlines the following support measures:

- 100% reimbursement of costs for local manufacturers related to registering one of their medicines with the US Food and Drug Administration (FDA) or the European Medicines Agency (EMA), upon submission of documents confirming their registration.
- 50% reimbursement of costs for local manufacturers related to registering pharmaceutical products in other foreign countries, upon submission of documents confirming their registration.

Further initiatives include:

- The establishment of a venture fund to finance start-ups in biopharmaceuticals, cell technologies, oncology, and related areas.
- The creation of an investment fund to support promising pharmaceutical projects.

By July 1, 2025, five model medicinal plant plantations will be established, with projects for processing medicinal plants from these plantations set to begin by the end of 2026.

A state institution, "Pharm Service," will be created to provide marketing and consulting services to help pharmaceutical enterprises implement advanced standards in their operations.