From June 3, 2015 a new system of price regulation for state registered pharmaceuticals came into force.
The new rules (the "Pricing Rules") govern determination of wholesale and retail prices for state registered medicines and apply to three categories of medicine distributors: (1) wholesale pharmaceutical companies, (2) pharmacies and (3) medicine manufacturers. Prices are set by the Tariffs Council of the Republic of Azerbaijan (the “Tariffs Council”) and the Pricing Rules set the application procedure for obtaining regulated prices from the Tariffs Council. In addition the rules specify that the retail prices should be printed on the packaging of pharmaceuticals or otherwise incorporated as approved by the Ministry of the Economy and Industry - the state authority supervising regulated prices for state registered pharmaceuticals. The Ministry of the Economy and Industry has already started accepting applications for approval of packaging.
In another change, the Tariffs Council has also been made responsible for the setting the prices for examination (for registration purposes) of pharmaceuticals and state registered medicines starting from April 24, 2015.
The Pricing Rules were introduced on June 3, 2015 when the Azerbaijani Cabinet of Ministers passed Decision No 209 approving the “Rules on Regulation of Prices of State Registered Pharmaceuticals and Price Supervision” while the procedure governing the price for examination of medicines was introduced on April 14, 2015 when the Cabinet of Ministers passed Resolution No. 107 amending the“List of Goods (Works, Services) the Prices (Tariffs) of which are Regulated by the State”, approved by Resolution No. 178 of the Cabinet of Ministers on September 28, 2005.
The Azerbaijani government explains the new system as an attempt to stop local distributors from charging unreasonably high retail prices for imported medicines compared to the prices of those drugs in their countries of origin.