Economic

Medicine producers urge reform of Moldova's pricing formula

The existing formula for determining the producer price of medicines does not align with current economic and geopolitical realities. At present, prices are calculated based on countries such as India and China, where production conditions differ significantly from those in the Republic of Moldova. Industry representatives argue that this pricing mechanism has led to a decline in the number of domestic drug manufacturers, dropping from 25 to just six over the past three decades.

Gheorghe Apostol, the President of the Association of Medicines Manufacturers, suggests that Romania's medicine prices should be compared to those in European Union member states with similar production levels.

"We are referring to countries like Romania, Bulgaria, Slovakia, Lithuania, and Greece. In our view, this would provide a fair comparison for local producers, particularly given that we have recently implemented into our national legislation Directive 83 of the European Commission, which regulates the pharmaceutical sector," Apostol stated during the show “Zi de Zi” on Radio Moldova.

The formula was last adjusted in 2023. The Ministry of Health has announced that it is developing a new pricing methodology, which will be discussed with the business community.

“When we have a published draft, all manufacturers will be notified,” stated Mariana Jitaru, the head of the Medicines Policy Department within the Ministry of Health.

The management of the Agency for Medicines and Medical Devices (AMDM) advises caution and emphasizes that any changes to manufacturer prices must consider their impact on citizens' finances and the public budget.

“We are also discussing reimbursed medicines, which is why the National Health Insurance Company needs to be involved in these discussions. We must find a balance between economic and financial interests and the burden on the patient,” highlighted Iuliana Albu, the director of the AMDM.

Over the past 30 years, the number of domestic drug manufacturers in the Republic of Moldova has significantly decreased from 25 to just six. Industry representatives attribute this decline to various factors, with one of the main issues being the unfavorable pricing formula for producers.

Currently, these six manufacturers supply slightly more than 8% of the state nomenclature, which equates to approximately 580 products out of around 6,000 registered drugs.

In 2024, the sector was designated as strategic and is now eligible for state financial support for investments. However, the country's reliance on imports remains substantial.

The Republic of Moldova currently produces between 550 and 600 types of drugs, representing about 10% of those listed in the State Nomenclature, which includes over 6,000 authorized products.

Despite the small size of the domestic market, the pharmaceutical industry is highly export-oriented, with over 70% of locally manufactured medicines being sold abroad.

Liubomir Guțu

Liubomir Guțu

Author

Read more