Reference pricing in Uzbekistan: ban on import and distribution of medicines exceeding the price limits

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Uzbekistan is planning to introduce a reference pricing system for pharmaceutical products from July 1, 2020. According to this system, it will be prohibited to import foreign medicines to Uzbekistan and distribute domestic medicines with a price higher than the price limits calculated through reference pricing.

A reference pricing system was ordered to be introduced at the end of 2019 (Resolution of the President “On additional measures to deepen reforms in the pharmaceutical industry of the Republic of Uzbekistan” No. PP-4554 dated December 30, 2019). To implement this Resolution, the Ministry of Health developed and approved the Regulation on the Price Formation Procedure for Pharmaceutical Products Based on the Reference Pricing System (reg. No. 3242 dated 10 June, 2020), which will enter into force on September 10, 2020.

How will the reference price be determined?

The following information will be collected into a database of the Agency of Pharmaceutical Industry Development under the Ministry of Health (authorized body):

  1. companies engaged in pharmaceutical activities;
  2. registered and certified pharmaceutical products;
  3. the registered price limits per the trade name of the pharmaceutical product and wholesale and retail price limits, with consideration of the established trade margin.

The marketing authorization holders are to provide the prices of the pharmaceutical product in the following countries:

  • in the country of origin;
  • reference countries;
  • and the Republic of Uzbekistan

Wholesale prices will be determined for one pharmaceutical product of the same producer with the same active substance, taking into account dosage, quantity in the package, concentration, volume and packaging.

Based on the above data, average prices and the maximum prices will be calculated and recorded in the database for each trade name of the pharmaceutical product.

The price of pharmaceutical products cannot be (irrespective of the number of intermediaries) more than 15% above the reference price for wholesale and 20% for retail.

Which countries are selected as reference points?

Pricing will be based on the wholesale price of one medicine in the following 10 reference countries belonging to the high-income, upper-middle and lower-middle income groups:

  1. Hungary;
  2. the Russian Federation;
  3. Ukraine;
  4. the Republic of Poland;
  5. the Republic of Tajikistan;
  6. the Republic of Slovenia;
  7. the Republic of Kazakhstan;
  8. the Republic of Bulgaria;
  9. the Republic of Belarus;
  10. Kyrgyz Republic.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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