New set of rules regulating medicine prices in Kazakhstan

 

New pharmaceutical pricing rules were approved this past April in Kazakhstan. The new price control measures extended their scope from medicines within the state procurement system to pharmaceutical products sold in private marketing channels, such as in wholesale and pharmacies.

In addition, new measures and processes were introduced, namely the following:

  • Registration of the manufacturer price (EXF) based on the average of prices in the 16 referenced countries or the price in the country of origin, if the price is not available in the referenced countries
  • Update on wholesale and retail mark-ups
  • Establishment of ceiling prices for wholesale and retail prices based on the above mentioned. Ceiling price are expected to be publicly available by June-July 2019.

 

Besides that, the submission of the product’s wholesale and retail prices must comply with the criteria* below.

  • The application must be accompanied by a breakdown of expenses on transportation, customs, safety and quality assessment and marketing; and import prices specified in invoices from the last 12 months, if applicable.
  • The submitted prices must not exceed the ceiling prices and the import price should not surpass the highest price of three lowest prices at which this product was imported for 12 months preceding the date of registration
  • Expenses associated with the marketing of the product should not exceed 50% of the manufacturer’s price

*These criteria are similar for the state procurement of medicines

The new legislation specifies that the current registered prices must be re-registered by the 1 January 2020 in order to comply with the new set of rules. It also allows companies to amend their prices once every six months.

GPI is abreast of emerging pricing trends such as the increasing use of more sophisticated pricing mechanisms in a wider variety of geographies.

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