Decree of the President of the Republic of Uzbekistan “On additional measures to improve the system of providing the population with medicines and medical supplies”

18.07.2017, 14:12 Announcements, News 616

In order to enhance social protection and provide the population with medicines and medical products at affordable prices, measures have been taken to improve the pricing regulation system, support the pharmaceutical industry and saturate the domestic market with domestic medicines and medical products.

In particular, trade margins have been set for wholesale and retail sales, a system of fixed prices for socially important medicines and medical products has been introduced.

In order to strengthen the protection of the rights and legitimate interests of citizens, to prevent and prevent the sale of medicines and medical products to the population at inflated prices, a demand for the issuance of commodity checks has been introduced.

Structural changes have been made in the pharmaceutical industry, domestic producers are granted tax and customs privileges, free economic zones have been created for the accelerated development of the pharmaceutical industry.

Structural changes have been made in the pharmaceutical industry, domestic producers are granted tax and customs privileges, free economic zones have been created for the accelerated development of the pharmaceutical industry.

At the same time, there are a number of significant omissions and shortcomings in this direction that have a negative impact on the state of providing the population with medicines and medical products, including:

first, unnecessary procedures for importing socially important medicines and medical products, leading to an artificial delay in their delivery and the formation of a deficit in the domestic market;

second, the lack of specific mechanisms for determining the requirements for medicines and medical products for the rational use of foreign exchange resources, ensuring balanced imports and domestic production;

third, the imperfection of the procedure for determining the marginal prices for both imported and imported socially significant medicines and medical products;

fourth, a high level of dependence of domestic pharmaceutical enterprises on imported raw materials and materials due to insufficient use of local raw materials;

fifth, shortcomings in the work of the territorial commissions on licensing the retail sale of medicines and medical products, including the lack of structures that ensure compliance with licensing requirements and conditions.

In order to eliminate the above problems, the uninterrupted provision of the population with medicines and medical products, the prevention of artificial shortages and overstatement of prices:

  1. To establish that:

from August 1, 2017, import purchases of medicines and medical products included in the List of socially important medicines and medical products, as an exception, are carried out without conducting tenders on direct contracts at prices approved by the Republican Commission for Control over the Provision of Medical Facilities and population with medicinal products and medical products, Republican foreign economic state enterprise “Uzmedexport” (Hereinafter – “Uzmedexport” RVEGP);

supply and sale of medicinal products and medical products under import contracts concluded before July 1, 2017, are carried out under the conditions and fixed prices that were in effect on the date of their conclusion;

Certification of medical products is carried out exclusively by state certification bodies accredited by the agency “Uzstandart” in accordance with the established procedure.

RVEGP “Uzmedexport” ensure the supply of medicines and medical products included in the List of Socially Significant Medicines and Medical Products, according to the additional demand that was formed in the second half of 2017.

Provide UEB “Uzmedexport” the right on a contractual basis to attract agents for the delivery of medicines and medical products.

The State Committee for the Promotion of Privatized Enterprises and Competition Development, the Ministry of Health, together with the Ministry of Finance, the Ministry of Economy and the State Committee of the Republic of Uzbekistan on Investments, within two weeks to submit proposals for the organization of warehouse and refrigeration facilities, as well as the own logistic network of the UZMEDEXPORT RVEGP.

2. To determine that pharmacies are obliged to re-register licenses for retail sales of medicines and medical products in the Council of Ministers of the Republic of Karakalpakstan, khokimiyats of regions and the city of Tashkent before January 1, 2018

3.Establish sectors to monitor the compliance with licensing requirements and conditions in the retail sale of medicines and medical products in the structures of the Ministry of Health of the Republic of Karakalpakstan, the health departments of the regions with a staffing of 2 units and the Central Board of Health of Tashkent – 4 units, increasing the ceiling managerial staff of territorial bodies of the Ministry of Health of the Republic of Uzbekistan for 30 units.

The Minister of Health (A. Shadmanov) within two weeks to make changes to the structure of the Ministry of Health of the Republic of Karakalpakstan, the health departments of the provinces and the Tashkent City Health Department.

  1. The Ministry of Health of the Republic of Uzbekistan together with:

The Ministry of Finance, the Ministry of Economy, the Ministry of Foreign Trade, the Central Bank, the State Customs Committee, the Uzfarmsanoat State Joint Stock Company within a month should critically review the List of Socially Significant Medicines and Medical Products and, following the results of making proposals for its optimization, including medicines , released strictly according to the prescription of the doctor, with subsequent updating as necessary;

The State Statistics Committee, the Council of Ministers of the Republic of Karakalpakstan, the Khokimiyats of the provinces and the city of Tashkent shall, within a month, submit to the Cabinet of Ministers a draft government decision on the approval of the Regulation on the procedure for determining the needs for socially important medicines and medical products that provides for an effective methodology for determining the need for medicines and medical devices taking into account the incidence, number of patients, treatment courses and their criteria, as well as communicating information about the needs to the concerned ministries and departments, pharmaceutical enterprises and wholesale organizations.

  1. The Republican Commission for Control over the Provision of Medical Facilities and Population with Medicinal Products and Medical Devices shall, within one month, submit proposals for improving the procedure for establishing fixed wholesale and retail prices for trade names for medicinal products and medical products included in the List of Socially Significant Medicines and medical products, providing for the minimization of the impact of a change in exchange rate on the generation process fixed prices.
  1. The Cabinet of Ministers of the Republic of Uzbekistan, with the involvement of specialists in a month’s time, to conduct a critical study of the activities of SJSC “Uzfarmsanoat” and enterprises included in its system, including the pricing of manufactured medicines and medical products, as well as the level of use of local raw materials for recognition enterprises by producers.
  1. The Council of Ministers of the Republic of Karakalpakstan, the khokimiyats of the regions and the city of Tashkent:

in two weeks to approve the staffing table and ensure the staffing of the sectors to monitor compliance with licensing requirements and conditions in the retail sale of medicines and medical products of the Ministry of Health of the Republic of Karakalpakstan, the health departments of the regions and the Tashkent City Health Department by highly qualified specialists with a higher pharmaceutical education experience in the field of pharmaceuticals for at least three years;

together with the State Tax Committee, the Ministry of Foreign Trade, Uzeltehsanoat, the Ministry for the Development of Information Technologies and Communications of the Republic of Uzbekistan, commercial banks in a month to develop a set of measures to equip pharmacies and their branches with equipment and software to issue commodity checks;

  1. The Ministry of Health of the Republic of Uzbekistan within one month to approve the form of the book of commodity checks, which are forms of strict accountability used for the retail sale of medicines and medical products, in the absence or malfunction of equipment for the issuance of commodity checks or temporary power outages.
  2. The Ministry of Information Technologies and Communications Development together with the Ministry of Health of the Republic of Uzbekistan, the Council of Ministers of the Republic of Karakalpakstan, regional and Tashkent city administrations shall develop a set of measures to form a single public register of addresses and a register of employees (pharmacists, pharmacists) directly involved in violations, the operation of the license was terminated due to violations of the law, in th number for gross violation of the order of the pricing of medicinal products and medical devices.

Territorial commissions for the issue of licenses for the retail sale of medicines and medical products monthly submit information to the Ministry of Health for inclusion in the single register of addresses and the register of employees (pharmacists, pharmacists) pharmacies.

  1. The Ministry of Health together with the Ministry of Economy, the Ministry of Finance, the Ministry for the Development of Information Technologies and Communications, the Ministry of Justice and the State Committee for Assistance to Privatized Enterprises and the Development of Competition of the Republic of Uzbekistan, within a month’s time,

creation of its own network of social pharmacies in order to increase the availability of socially important medicines and medical products;

prevention of uncontrolled use by citizens of medicines, including by ensuring strict compliance with the requirements for the dispensing of medicinal products according to the prescriptions of doctors, with the exception of medicines included in the List of OTC medicines;

the introduction of information systems that monitor the implementation of socially important medicines that are dispensed on the prescription of doctors.

  1. To the State Adviser of the President of the Republic of Uzbekistan (AN Yunushodzhaev) to create a working group to monitor the state of production and provide socially significant medicines and medical products to the population and treatment and prophylactic institutions of the republic.

The Working Group shall ensure that the necessary measures are taken to eliminate the deficiencies identified in the course of monitoring.

  1. The National Television and Radio Company of Uzbekistan, the Uzbek Agency for Press and Information, the Ministry of Health of the Republic of Uzbekistan, the Council of Ministers of the Republic of Karakalpakstan, the regional khokimiyats and the city of Tashkent together with other interested ministries and departments to organize wide coverage in the media of the essence and significance of this resolution, including the importance of observing fixed prices for socially important medicines and medical products
  2. The Ministry of Health, together with the Ministry of Justice of the Republic of Uzbekistan, other interested ministries and departments, shall submit to the Cabinet of Ministers within a month’s time proposals for changes and amendments to the legislation arising from this resolution.
  1. The control over the implementation of this resolution shall be entrusted to the Prime Minister of the Republic of Uzbekistan, A.N. Aripov, State Advisor to the President of the Republic of Uzbekistan A.N. Yunushodjaev and the Prosecutor General of the Republic of Uzbekistan, I.B. Abdullaeva.

President of the Republic of Uzbekistan Sh. MIRZIEYEV

The city of Tashkent, July 17, 2017.

 * * *

To the Resolution of the President of the Republic of Uzbekistan

“On additional measures to improve the system

provision of the population with medicines

and medical products »

A COMMENT

Providing citizens with the necessary medicines and medical products at affordable prices is an important condition for the effective implementation of public policies in the field of health and social protection of the population.

In this regard, during the ongoing health reforms, special attention is paid to providing the population with affordable medicines and medical products, as well as preventing the facts of artificial overstating of prices for them

In particular, the maximum trade allowances for wholesale sale are established – in amounts not exceeding 15 percent of the purchase price, for retail sales – not more than 20 percent of the wholesale price.

The system of fixing fixed prices for the most socially significant medicines and medical products of foreign and domestic production has been introduced.

In order to develop the pharmaceutical industry, structural changes have been made, domestic manufacturers of medicines and medical products are granted tax and customs privileges for the modernization of enterprises and expansion of the localization of production.

At the same time, there are a number of significant omissions and shortcomings that have a very negative impact on ensuring access of the population to essential medicines and medical products, in particular:

existing excessive procedures for the import of socially important medicines and medical products lead to an artificial delay in their delivery and the formation of a deficit in the domestic market;

the lack of specific mechanisms for determining the requirements for medicines and medical products does not allow for a balanced import and forecasting of output  pharmaceutical products by domestic enterprises;

it is noted the imperfection of the procedure for determining the marginal prices for both imported and imported socially significant medicines and medical products;

insufficient level of localization of production of pharmaceutical products causes a high dependence of domestic pharmaceutical enterprises on imported raw materials and materials, which as a result leads to a sharp rise in prices for medicines and medical products;

the activities of the territorial commissions for licensing retail trade in medicines and medical products have not been properly regulated, which negatively affects the monitoring of compliance with licensing requirements and conditions.

Proceeding from the foregoing, and also in accordance with the Strategy of Action on the five priority development directions of the Republic of Uzbekistan in 2017-2021 by the President of the country The present resolution provides for the implementation of comprehensive measures to further improve the system of providing the population with socially important medicines and medical products, preventing the formation of their deficits.

In particular, this decree, from August 1, 2017, introduces an order according to which imports of socially important medicines and medical products are exclusively imported by the Republican foreign economic state enterprise Uzmedexport. This enterprise was also entrusted to ensure the supply of socially important medicines and medical products in accordance with the additional demand that was formed in the second half of this year.

In addition, in order to further improve the quality of certification of medical products, it is provided only by state certification bodies.

In view of the new requirements for the organization of pharmacies, it is envisaged to re-register, by January 1, 2018, the valid licenses for the retail sale of medicines and medical products. At the same time, the re-registration will be carried out by a new licensing body – the Council of Ministers of the Republic of Karakalpakstan, regional and city khokimiyats Tashkent.

For this purpose, in the structures of the Ministry of Health of the Republic of Karakalpakstan, the health departments of the regions and the Central Health Board of Tashkent, sectors are established to monitor compliance with licensing requirements and conditions in the retail sale of medicines and medical products.

Along with this, the Ministry of Health of the Republic of Uzbekistan, together with the interested ministries and departments, is entrusted with:

revise the list of socially significant medicines and medical products and, following the results of making suggestions for its optimization;

To develop the Regulation on the procedure for determining needs for socially important medicines and medical devices

to make proposals on improving the order of pricing for trade names for medicines and medical products included in the List of socially significant;

to develop a set of measures to equip pharmacies and their branches with equipment and software to issue goods receipts, as well as approve a sales receipt book for use in the absence or malfunction of equipment for the issuance of a sales receipt or a power outage.

It should be specially noted that in order to increase the level of providing the population with socially important medicines and medical products, it is envisaged to create its own network of social pharmacies of the Ministry of Health, whose main task is to sell medicines and medical products to the population at fixed prices.

In general, the adopted resolution will allow to further strengthen the social protection of citizens, eliminate the causes and conditions that have a negative impact on providing the population with medicines and medical products at affordable prices.