A year following the implementation of drug price reforms in Latvia, the anticipated mass closures of pharmacies and drug shortages have not occurred as predicted. Recent statistics show that of the 3,635 registered prescription medications, 3,285 (90%) have reduced prices, while 344 have seen price increases and only six remained unchanged. The cheapest prescription drug category, costing up to 5 euros, experienced an average price increase of 21%, while drugs within the 5-10 euro range saw a slight decrease, and those priced above 10 euros dropped by about one-fifth.

In response to the changes, large wholesalers have requested an increase in allowable markups on expensive drugs, which currently stands at 0.50 euros per package. The Ministry of Health has indicated a potential adjustment of these markups starting July 1st, where markups on cheaper medications may slightly decrease, whereas those for more expensive drugs could rise. The landscape for over-the-counter medications has shown an average price increase of 3.6% over the past year, with prices remaining stable for the majority of products but rising for 112 specific medications.

The current situation in the industry reflects a significant shift in pricing dynamics, revealing that the concerns about medication affordability for Latvian consumers, particularly compared to neighboring countries, are being reconsidered. The ongoing evaluations of potential price restrictions for over-the-counter drugs underscore the government’s proactive stance in monitoring and managing drug pricing strategies to benefit consumers, ensuring they do not face disproportionately high costs while maintaining accessibility to essential medications.