The Agency for the Protection and Development of Competition (APDC) conducted an analysis of the wholesale market for pharmaceuticals, revealing that 51 companies occupy dominant positions, controlling from 15% to 75.4% of the market, the agency’s press service reported.
"In order to assess the state of competition, the agency conducted an analysis of the market for wholesale distribution of medicines. The results of the analysis showed high interest on the part of business entities, with 51 of them occupying a dominant position with market shares ranging from 15% to 75.4%," the report said on Tuesday.
Experts named excessive government regulation, which does not promote price competition, and high import dependence, which currently stands at 81.8%, as the main reasons for monopolization.
"The agency, together with the Ministry of Health, is working on the issue of excessive price regulation within the framework of the Roadmap for the Development of Competition, one of the key objectives of which is the gradual deregulation of prices until 2026. The first stage was implemented in 2023. According to the authorized body in the field of health, the results showed that out of 302 deregulated drugs, 208 were sold in pharmacies at an average of 11.5% below the previously approved maximum prices. From January 2025, the Ministry of Health plans to expand the list of deregulated drugs to 952," the agency noted.
As experts noted, the lack of domestic production of pharmaceutical substances is a restraining factor. Kazakhstan is also seeing a decline in the production of generic drugs by domestic manufacturers. The reason for this is the low profitability of these drugs, which cannot compete with foreign analogues.
“The Agency considers it appropriate to strengthen the work of the authorized body in the field of healthcare to implement measures aimed at saturating the Kazakhstani market with priority medicines of domestic production,” the Agency concluded.
Let us recall that earlier AZRK reported that it had identified problematic aspects that contribute to a significant increase in the price of medicines. Following the Agency for the Protection and Development of Competition (AZRK), the Anti-Corruption Agency of Kazakhstan also reported on the inflated prices of medicines.
Источник: Казахстанский Фармацевтический Вестник, pharmnews.kz
"In order to assess the state of competition, the agency conducted an analysis of the market for wholesale distribution of medicines. The results of the analysis showed high interest on the part of business entities, with 51 of them occupying a dominant position with market shares ranging from 15% to 75.4%," the report said on Tuesday.
Experts named excessive government regulation, which does not promote price competition, and high import dependence, which currently stands at 81.8%, as the main reasons for monopolization.
"The agency, together with the Ministry of Health, is working on the issue of excessive price regulation within the framework of the Roadmap for the Development of Competition, one of the key objectives of which is the gradual deregulation of prices until 2026. The first stage was implemented in 2023. According to the authorized body in the field of health, the results showed that out of 302 deregulated drugs, 208 were sold in pharmacies at an average of 11.5% below the previously approved maximum prices. From January 2025, the Ministry of Health plans to expand the list of deregulated drugs to 952," the agency noted.
As experts noted, the lack of domestic production of pharmaceutical substances is a restraining factor. Kazakhstan is also seeing a decline in the production of generic drugs by domestic manufacturers. The reason for this is the low profitability of these drugs, which cannot compete with foreign analogues.
“The Agency considers it appropriate to strengthen the work of the authorized body in the field of healthcare to implement measures aimed at saturating the Kazakhstani market with priority medicines of domestic production,” the Agency concluded.
Let us recall that earlier AZRK reported that it had identified problematic aspects that contribute to a significant increase in the price of medicines. Following the Agency for the Protection and Development of Competition (AZRK), the Anti-Corruption Agency of Kazakhstan also reported on the inflated prices of medicines.
Источник: Казахстанский Фармацевтический Вестник, pharmnews.kz