The introduction of the new drug pricing model has not led to a reduction in the number of pharmacies and pharmacy branches, nor has it yet contributed to the opening of new pharmacies in less populated areas, where their number is insufficient, despite the fact that pharmacies in less populated areas receive greater state support, as the fee for pharmacist services is higher, writes Diena.
This is one of the conclusions of the report on the effectiveness of the new drug pricing model.
The report states that there are currently 3,635 prescription medications registered in the Latvian Medicines Register with a specified manufacturer price. Comparing the prices declared by manufacturers for these medications as of February 2 of this year and December 31, 2024, it can be seen that for 3,285 medications, or 90% of all prescription medications with a declared manufacturer price, the maximum allowable pharmacy price has decreased; for 344 medications, or 9.5%, it has increased; and for six medications, it has remained unchanged.
Analyzing data on drug prices in various segments and the total costs of acquiring medications per patient from a randomly selected basket allows us to conclude that with the change in model, personal expenses for purchasing prescription medications have decreased.
By analyzing the prices of the TOP-200 prescription medications, the ministry found that in 2025, no significant trends in changes in manufacturer prices for prescription drugs were identified. Last year, prices were reduced for a greater number of prescription medications than in 2024. There was no increase in the number of cases of price increases by manufacturers compared to 2024.
Most of the medications whose prices increased are those with a pharmacy price of up to five euros. In this price group, the prices of prescription medications increased on average by 0.50 euros excluding VAT, or by 21%. For prescription medications priced from five to ten euros, prices in pharmacies mostly decreased. The average price reduction in this price category is 0.92 euros excluding VAT, or 12%, while the average price increase is 0.53 euros, or 8%.
Pharmacy prices also mainly decreased for prescription medications priced from 10 to 25 euros. The average price reduction in this price category is 3.27 euros excluding VAT, or 21%, while the average price increase is 1.22 euros, or 11%. Pharmacy prices decreased for prescription medications priced above 25 euros, with an average price reduction of 12.61 euros excluding VAT, or 20%. It is estimated that due to the change in markups, pharmacy prices increased for prescription medications costing up to 5.02 euros, including VAT. This is related to the increase in the declared manufacturer price, not the change in markups on medications.
