In MP's assessment, the cost of generic medications in Kazakhstan surpassed that of brand-name drugs.
Alikhan Aimagambetov, a sharp critic, highlighted some shady practices in setting ceiling prices for certain goods. He believes that local manufacturers, basing their calculations on the cost of foreign products that aren't even up for sale in the country, often end up with prices significantly higher than the original.
Back in June 2025, Alikhan Smailov, chairman of the Supreme Audit Chamber (SAC), shared a concerning revelation. Apparently, the cost gap between the state and market sectors for the 15 most expensive drugs reached a staggering 600%.
While specifics on Smailov's report remain vague, here are some common reasons for price differences between state and market sectors, especially for costly medications:
Privacy and market power often play a role. State sectors, thanks to bulk purchases, often negotiate better prices due to their stronger bargaining power. This difference often isn't observed in the market sector, where companies aim to maximize profits, ultimately leading to higher prices.
Moreover, state sectors frequently operate under stricter regulatory frameworks, enabling direct control over pricing, such as price ceilings for essential drugs. These lower costs often don't apply to the market sector.
Revenue considerations also play a part. Publicly funded healthcare systems often provide subsidies or discounted rates for expensive drugs, reducing financial burdens for patients. In contrast, the market sector relies on private insurance or out-of-pocket payments, which increases costs for consumers.
In addition, distribution and logistics expenses can vary between state and market sectors. State sectors often have streamlined distribution networks, lowering delivery and storage costs. Market sectors, with more complex and diverse supply chains, may face higher distribution costs.
Profit margins can also differ significantly between the two sectors. While state sectors often aim to keep profits minimal, market sectors commonly factor in research and development costs, which can inflate prices.
Lastly, state sectors may enjoy easier access to generic versions of drugs, which are generally cheaper than brand-name drugs available in the market sector. Access to generic drugs can significantly reduce costs for the state sector.
I, as a concerned citizen, might question whether the same principles apply in the realm of health-and-wellness products, particularly considering the potential for significant price disparities due to privacy, market power, regulatory frameworks, revenue considerations, distribution costs, profit margins, and access to generic alternatives.
In light of the staggering 600% cost gap between the state and market sectors for the 15 most expensive drugs, I wonder if science and research could play a pivotal role in bridging this gap, especially by making affordable alternatives such as generic health-and-wellness products more accessible to all sectors.
