TODAY.AZ / Business

Azerbaijan medicine market witnessed 25 percent price rise

19 April 2007 [14:09] - TODAY.AZ
Price rise of recent months in Azerbaijan impacted country's medicine market.

The medicines' price rise became the result of the price rise for energy in the country, APA reports.

Though no changes were witnessed immediately in January, prices for medicines increased one month later. Most of chemist's shops raised the prices in 25 percent. If the price of sterile cotton was 30 kopecks, now it raised 50precent and became 50 kopecks.

The price was witnessed also for imported medicines. "Avromed" Medicine Company which imports approximately 4000 different medicines to Azerbaijan explained the price rise with production costs. The manager of the Company Gulzar Sadigova told APA that increase of the raw materials’ price by medicine companies and price rise for energy in Azerbaijan caused the price rise for imported medicines as result. The company said it is impossible to predict any price in the future.

The giant medicine importer in Azerbaijan "Liderfarm" Open Stock Company (OSC) brings 95 percent of medicines from Europe and the rest percent from America countries.

The chairman of "Liderfarm" OSC Sabit Khalilov told that the price rises for medicines are different. It depends on the distance between Azerbaijan and medicine–importer country. He said the prices for the same medicines brought from far countries are much expensive. According to him, some companies increases the prices making use of the situation.

"Liderfarm" head thinks they do not another choice that to rise prices. After energy prices increased the same situation was witnessed in transport. To meet these expenditures and to pay workers wages we raised prices in 5-15 percent.

Local medicine producer Azerfarm LLC has not raised prices yet, Emin Zahidli, officer of Azerfam sale department told. He said that not raising the prices can result in bankruptcy for a company operating since 1999. Therefore, the prices for medicines can rise. The company does not want make a hasty decision and is searching real variants.

Unlike Azerfarm, the other local company Azersintez Turkey-Azerbaijan joint company has already raised prices. Deputy Director of Azersintez Mahammad Meykhanimov told that they have raised the prices by 20% since January due to the rise of prices for energy deliveries. He said it depends on the government's decision whether they will raise the prices in future. If the government passes decision on price rises, the prices will again rise.

Local producing companies do not have much share in Azerbaijan's medicine market. As local companies sell very few medicines, Azerbaijan meets 90% of its needs for medicine at the expense of import. The government can not interfere with the tariff policy of importing countries which determine the price for medicines they import.

Health Ministry Innovation and Supply Center told that they only control the quality of medicines. They can not take measures for reducing prices for medicines as they are not commissioned with control over price policy.

But the government is obliged to interfere with this problem due to the recent increasing of prices. Ogtay Hagverdiyev, director of finance and credit department of the Cabinet told that increase of prices can be prevented by the year-end.

The government is to take monetary measures – severe measures in crediting, sterilization of manat, issue of securities and directing money supply to banks.

If these measures are realized efficiently, 16.6% inflation recorded in the fist quarter of this year can be reduced by 9% forecasted for 2007. It will reduce the prices by the year-end, as well as of medicines.

URL: http://www.today.az/news/business/39680.html

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