Sikkut: Competition is necessary also on wholesale pharmaceutical market

In an interview with "AK," Health Minister Riina Sikkut (SDE) said that amendments to the Competition Act, the renewal of price regulation, and the granting of the right to import medicines to hospital pharmacies should improve and make the pharmaceutical market more transparent.
Sikkut said that two issues arise in the pharmaceutical market: one is the lack of transparency that exists in markets around the world in terms of how medicines are priced and how much the state and consumers pay for medicines; and the other is the Estonian state's inability to deal with certain consolidated markets: the fuel market, the telecoms services market, and the pharmaceuticals market.
Is the problem of the pharmaceutical market one of those unfortunate examples where the state is helpless?
No. The amendments to the Competition Act have passed their first reading in parliament. The Competition Authority will have more powers to investigate, detect and impose fines for competition law violations, so we hope for a speedy process in this regard. On the other hand, the Ministry of Social Affairs is in the process of updating the price regulation that has been in place for 20 years, what mark-ups are allowed, we will have it ready this year and probably next year or the year after it will come into effect, and in addition I have sent a draft for approval that would also give hospital pharmacies the right to import medicines, so there would be more competition in the wholesale market.
In the case of hospital pharmacies, a number of specialists have already said that the market will not be affected. And the second question is, do you have the political support for this?
The market share of hospital pharmacies is almost one third of the Estonian pharmaceutical market at €130 million. This is by no means marginal. This is the largest procurement that will take place in Estonia and it is certainly a way to improve the competitive situation.
In your opinion, do you think that Aivar and Margus Linnamäe's donations to the political parties support the world view? Or are they shaping policy to suit themselves?
As far as I know, they don't give to SDE.
They have donated to the Social Democrats.
Possible. I can't comment on their world view, I don't know them personally. But we remember the pharmacy reform procedure in Parliament, which was very bumpy, going one way, then another, then another, and not really getting where we needed to go from a health care perspective – independent pharmacists who can choose their own product range, set their own prices and offer discounts.
Should we do pharmacy reform 2.0?
As today's "AK" story showed – the wholesale market needs competition too.
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Editor: Marko Tooming, Kristina Kersa