What Will Fines Change in a Monopoly-Driven Pharmaceutical Sector?

Officials (doctors) will be fined for prescribing medications not included in the State Register. Doctors could face fines ranging from 100 to 150 AZN, while legal entities may be fined between 300 and 400 AZN. This is outlined in a new proposed amendment to the Administrative Offenses Code, under Article 221.12.

Individuals who knowingly sell, store for sale, or import substandard, expired, unregistered medications, or drugs that fail to meet regulatory standards or lack a clear origin, will also be fined. Officials may face fines from 2,000 to 2,500 AZN, and legal entities from 7,000 to 9,000 AZN.

For years, complaints have surfaced regarding the sale of so-called "branded drugs" in the country and their prescription by doctors. Some claims suggest quality issues with these medications, yet their sale reportedly continues.

The existing legislation includes provisions for the registration of medications and their inclusion in the State Register.

Mushfiq Mammadov, a member of the Milli Majlis Health Committee, told Turan that both locally and internationally produced drugs undergo centralized state registration:
"The registration process includes both the drug’s composition and its trade name. The Ministry of Health’s Analytical Expertise Center evaluates all quality parameters, safety for human health, and side effects before authorizing their use in the country."

According to Mammadov, drugs may sometimes be excluded from state registration either accidentally or deliberately. He noted that unregistered drugs could still enter the country through various means:
"Relevant authorities work to prevent such attempts. However, if unauthorized drugs enter the country, these legislative amendments aim to stop them from being prescribed."

Attempts to contact the Analytical Expertise Center and companies importing medicines into the country for comment were unsuccessful.

Radiologist Aydin Aliyev highlighted key nuances in an interview with Radio Azadliq : "Are all essential medications included in the State Register? This issue needs investigation. If only names are listed, and one drug is included while another with the same composition is excluded, this is a mistake. Additionally, laboratory tests are necessary to ensure that even drugs with identical compositions may vary in quality."

According to Aliyev, so-called "branded drugs" should, in theory, be high-quality due to their association with reputable companies:
"However, in our context, there’s distortion. These drugs are sold at prices far higher than their production costs, often with quality issues. The lack of healthy competition in drug imports negatively impacts quality. Monopolies in the pharmaceutical sector affect both quality and pricing. A monopolist assumes there’s no alternative to their product anyway."