During its meeting on February 14, the Cabinet of Ministers amended Resolution No. 955 (October 17, 2008) to limit trade mark-ups on medicines and ban certain marketing practices. These changes were adopted under the Decision of the National Security and Defense Council of February 12, 2025, enacted by Presidential Decree No. 82/2025.
1. Key Regulatory Changes
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Maximum Supply and Sales Surcharges (for Distributors)
- Effective Date: March 1, 2025
- New Limit: Up to 8% on the wholesale price for all medicines (with certain exceptions).
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Regressive Maximum Retail Mark-ups (for Pharmacies)
- Prescription Medicines: From 10% to 25% on the purchase price, depending on the drug’s cost.
- Over-the-Counter (OTC) Medicines: Maximum 35% retail mark-up on the purchase price, when purchased from legally allowed funding sources (excluding direct state and/or local budget funding).
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Ban on Marketing Payments
- Effective Date: March 1, 2025
- Scope: Prohibits marketing services, medicine promotion fees, and related information or other services from being provided in connection with the sale of medicines to the end consumer.
- Duration: Ban remains until the government introduces:
- A separate summary of wholesale prices for all medicines, and
- Clear rules for marketing practices.
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Resumption of State Inspections
- Effective Date: March 1, 2025
- Authority: The State Service of Ukraine for Food Safety and Consumer Protection will inspect pharmacies and distributors for compliance with the newly regulated prices.
2. Goals and Expected Outcomes
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Immediate Price Reduction:
According to the Ministry of Health, these measures will reduce retail medicine prices for the end consumer in the near future. -
Transparency and Accountability:
By limiting mark-ups and banning marketing fees, the government aims to prevent hidden surcharges and ensure fair pricing across the supply chain. -
Support from Pharmaceutical Manufacturers:
Ukrainian pharmaceutical companies have already pledged to cut retail prices by 30% for the 100 most popular medicines starting March 1.
3. Context and Background
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Previous Regulation:
Prior to this amendment, price controls applied exclusively to:- Medicines listed in the National List,
- Drugs partially or fully funded by the state budget, and
- Medicines reimbursed via the “Affordable Medicines” program.
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NSDC Decision and Presidential Decree:
The changes reflect the NSDC’s decision to take “additional measures to ensure the availability of medicines” for Ukrainians—now legally in force under Decree No. 82/2025.
In Summary, these measures represent a major governmental effort to stabilize medicine prices, protect consumers, and increase market transparency. Both national producers and international suppliers operating in Ukraine must adapt to the new rules, which include strict mark-up limits, a ban on certain marketing payments, and heightened inspection by state authorities.
