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LEGAL ALLIANCE, founded in 1995, is today one of the leading Ukrainian law firms specializing in legal support to pharmaceutical companies doing business in Ukraine and CIS countries.

OUR CLIENTS represent the following industries: pharmaceuticals, medical devices, consumer goods, medicine, cosmetics, para-pharmaceuticals, chemistry, biotechnology, agriculture and food products.

LEADING ASSOCIATIONS — AIPM Ukraine, APRaD as well as the EBA Healthcare Committee have chosen Legal Alliance as their legal advisor.

The AMCU provided recommendations to the Ministry of Health of Ukraine regarding regulation of medicines promotion

According to message of the AMCU press service, on September 13th, 2018 the AMCU submitted to the Ministry of Health of Ukraine mandatory recommendations to take measures aimed at developing competition, preventing violations of laws on protection of economic competition and conditions facilitating them, namely:

  • to develop and adopt regulatory act(s) which set clear, transparent and non-discriminatory rules of medicines promotion for all members of pharmaceutical markets in order to:
  • prevent distortion of competition on markets of medicines due to use of marketing tools at realization of medicines (wholesale and retail);
  • enable end users to make objective, impartial and independence choice of the needed medicines in pharmacies;
  • prevent prevailing realization (wholesale and retail) of medicines at excessive prices due to use of marketing tools.

The mentioned recommendations must be considered within 90 days upon their receipt.

According to the AMCU, today realization of medicines with the use of marketing services for all members of the sale chain (producers, distributors and pharmacies/pharmacy chains) is permanently spread practice.

The message also states that the situation on the pharmaceutical market is that all members of the medicine promotion chain can be interested in acquiring and realizing to end consumers medicines of those manufacturers, the performance of marketing services agreements (or supplementary agreements to supply contracts) with which will allow them to get more financial benefits.

According to the AMCU, the issue of creation of transparent environment in the area of medicines promotion requires attention and consolidation of effort of competent authorities and pharmaceutical community.

In our opinion, these recommendations of the AMCU can launch the mechanism of developing rules of medicines promotion in the sale chain (from manufacturers to distributors and in pharmacies). This issue is very important and, in particular, it concerns such aspects as discounts and motivation payments to distributors and pharmacies. Attempts of business to get closer to governance of these issues have failed to be successful so far.

Taking into consideration effectiveness of the analogous arrangement approach to settle the issue of multiple lots at local public procurement, it can be expected that the issue of promoting medicines in sale chain will also be considered.

Contact the author: Anrdii Gorbatenko, associated partner at Legal Alliance Company, gorbatenko@l-a.com.ua

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