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RESOLUTION OF THE CABINET OF MINISTERS OF THE AZERBAIJAN REPUBLIC

of June 3, 2015 No. 209

About approval "Procedure for price regulation on the medicines which underwent state registration and control of these prices"

(as amended on 27-03-2017)

For the purpose of ensuring execution of subitem 2.1.3 of the Presidential decree of the Azerbaijan Republic of March 18, 2015 "About modification of the Presidential decree of the Azerbaijan Republic "About application of the Law of the Azerbaijan Republic "About medicines" of February 6, 2007 No. 528" the Cabinet of Ministers of the Azerbaijan Republic decides No. 493:

1. Approve "Procedure for price regulation on the medicines which underwent state registration and control of these prices" it (is applied).

2. This resolution becomes effective from the date of signing.

Prime Minister of the Azerbaijan Republic

Artur Rasi-Zade

 

Approved by the Resolution of the Cabinet of Ministers of the Azerbaijan Republic of June 3, 2015, No. 209

Procedure for price regulation on the medicines which underwent state registration and control of these prices

1. General provisions

1.1. This Procedure is prepared according to article 4.6 of the Law of the Azerbaijan Republic "About medicines" and determines regulations of the prices of medicines in the Azerbaijan Republic and control of these prices.

1.2. This Procedure extends to persons provided in articles 1.0.10-1.0.12 of the Law of the Azerbaijan Republic "About medicines".

1.3. The prices of the medicines which underwent state registration in the Ministry of Health of the Azerbaijan Republic and included in "The register of medicines of the Azerbaijan Republic" are regulated by Tariff (price) council of the Azerbaijan Republic (further - Council).

1.4. Wholesale and retail sale of the medicines which underwent state registration is performed at the prices established by Council.

2. Establishment of basic prices on medicines

2.1. Price regulation on medicines is performed on the basis of basic prices. Basic price - the medicine cost determined taking into account its dose, trade packaging and its quantity in packaging on the basis of comparison of official prices of realization at the wholesale pharmaceutical companies of the different countries.

2.2. The method of calculation of basic prices on medicines is determined by Council according to subitem 2.1.2 No. 341 "Provisions on Tariff (price) council of the Azerbaijan Republic" approved by the Presidential decree of the Azerbaijan Republic of December 26, 2005.

2.3. Taking into account experience of regulation for the purpose of establishment of basic prices and opportunities of exit to information sources at the prices of medicines, Council annually determines 5 (five) basic countries. About modification of the list of the basic countries appears in 2 (two) months.

2.4. The basic countries for the next year appear Council till October 31 of the current year. If to the specified term the new countries are not announced, the basic countries of the current year are left without changes and the next year.

2.5. If the data provided by producers of medicines or persons authorized by them (further - producers), and also information sources used by the Secretariat of Council (further - the Secretariat), do not allow to obtain detailed price information on medicines, services of the organizations specializing in monitoring of the prices of medicines are used.

2.6. Information sources used for price fixation on medicines are posted on the official website of Council.

3. Establishment of wholesale and retail prices on medicines

3.1. Retail price on medicine is excluding VAT calculated by the corresponding allowances to the prices of medicines to the conditional selling price provided for the wholesale pharmaceutical companies of the country in the table to Item 3.4 of this Procedure. Conditional selling price of medicine to the wholesale pharmaceutical company within the country is the price calculated on the basis of basic price taking into account the official rate of national currency in relation to US dollar for the date established by Council for the reference of upper limit for the selling rate set by the Central bank of the Azerbaijan Republic and cost of control brand.

3.2. Retail price on medicine is excluding VAT calculated by the corresponding allowances to wholesale prices for medicines excluding VAT provided for the pharmaceutical organizations in the table to Item 3.4 of this Procedure. Conditional selling price of medicine to the wholesale pharmaceutical company within the country is the price calculated on the basis of basic price taking into account US dollar exchange rate on the official site of the Central bank of the Azerbaijan Republic for date of submission of the price declaration and cost of control brand.

3.3. The wholesale pharmaceutical companies and the pharmaceutical organizations will determine the level of allowances to the prices of medicines as a percentage of parts (amounts) of the conditional selling price established for the wholesale pharmaceutical companies of the republic.

3.4. The allowances specified in the following table are applied to establishment of wholesale and retail prices on medicines:

 

The conditional selling price on medicines established for the wholesale pharmaceutical companies of the republic

The allowance for the wholesale pharmaceutical companies

The allowance for the pharmaceutical organization

1

2

3

To the 5th manat (5th manat inclusive)

20 percent from the conditional selling price established for the wholesale pharmaceutical companies

20 percent from wholesale price

5-20 manat (20th manat inclusive)

1 manat + 17 percent from the sum of the conditional selling price determined for the wholesale pharmaceutical companies, exceeding the 5th manat

20 percent from wholesale price

20-50 manat (50th manat inclusive)

3, manat + 13 percent from the sum of the conditional selling price determined for the wholesale pharmaceutical companies, exceeding the 20th manat

20 percent from wholesale price

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