Rising from the archives
Deputies resumed discussion on a narcotics propaganda regulation
After making it a criminal offence to circulate counterfeit drugs and starting two case-and-preventive criminal proceedings on this issue the State Duma cast their minds back to Irina Yarovaya’s long-standing initiative to prohibit propaganda of narcotic drugs. Having dusted off the document, which extends the very concept of “propaganda” and provides for criminal liability for this kind of activities, the deputies decided to open doors for it and approved it in the first reading. Experts remark that if this draft law is voted finally as is, even mentioning a narcotic drug may entail a criminal procedure.
[pages 1,3 of #14, 21/04/2015]
Pharmacy burden
The number of audits puzzles pharmacy businesses
Representatives of pharmacy businesses report a growing number of audits both by the relevant state authorities and prosecution agencies. The participants of the SoyuzPharma Pharmacy Association conference held on April 10 pointed out that this trend contradicts to what President of the Russian Federation declared in his State of the Nation Address regarding a rundown of activities to control small and medium-sized businesses.
[page 2 of #14, 21/04/2015]
Change of labeling
Pharma market players discussed prospects of implementing 2D drug labeling
Several Russian pharmaceutical companies are running pilot projects on implementing 2D labeling of their products. Is this rollout economically feasible? What is the foreign experience in this sphere? These questions were the center of discussion by the participants of the 7th conference “The State Regulation and the Russian Pharmaceutical Industry—2015: the dialog continued” that was hosted on April 1 in Moscow.
[page 4 of #14, 21/04/2015]
Chance to be treated domestically
State Corporation Rostech to probe medical services market
The state corporation decided to start implementing its plans from e-services. Its new company, National IT Penetration Center Ltd. (NTsI), explores the opportunities of making money in the e-commerce market, including that medicine-related. Besides, another Rostech’s freshly created company, RT-Medicine OJSC, is planning to provide medical services. Initially, Rostech was established for the development of hi-tech industry. As a rule, it applied to the industries dominated by state enterprises. But gradually the state corporation’s interests began expanding to competitive areas. There is nothing bad about it as the state sector has been traditionally widely represented in the Russian economy. The only problem is as follows: the more state enterprises find their way to the free market the more often the state is tempted to help them.
[page 5 of #14, 21/04/2015]
Searching for fine balance
In October 2014, an extraordinary general meeting of the Union of Professional Pharmaceutical Organizations (SPFO) elected Liliya TITOVA as COO. She superseded Oleg ASTAFUROV who headed the Union for more than two years. PharmVestnik correspondent Elena Mekshun interviewed Liliya TITOVA on the tasks to be solved in the changed conditions and prospects viewed by SPFО that represents the interests both of pharmaceutical manufacturers and distributors.
[page 6 of #14, 21/04/2015]
Saving on health
Drug procurement is the only sphere not affected by medical cost cutting
On April 15, the Federation Council passed amendments to the 2015 federal budget and the budget of the Federal Compulsory Medical Insurance Fund (FFOMS). Pursuant to these amendments, healthcare spending will be reduced by 47.3 bn RUB, this not being the final figure. Firstly, it is unknown by how much health funding from regional budgets will be cut; secondly, federal budgetary spending may be further revised through the end of the year.
[page 7 of #14, 21/04/2015]
Galloping on reforms
Manufacturers of medical devices lag behind regulators
Medical device market players consider specific regulatory documents developed by specialized agencies inadequate and contradictory. Experts remark that so many documents regulating the medical device market have been developed over the last few months that while big manufacturers are somehow able to adjust themselves to the new game rules, medium-sized and small companies just fail to process the entire volume of information. Therefore their presence in the Russian market is extremely risky. At the same time, this abundance of regulations either fails to resolve or does not even touch upon the issues that have been burning for the society already for a few years.
[pages 8-9 of #14, 21/04/2015]
Completing the circle
Another Big Pharma company settles in Russia
On April 10, a Novo Nordisk (Denmark) facility was put in operation in the Industrial Park Grabtsevo of Kaluga region. This full-cycle facility will manufacture all types of modern insulin drugs. The company plans to satisfy the demand of the Russian diabetic patients. Experts note that the company that is among the TOP3 insulin manufacturers has no way out other than localizing its production in Russia. At the same time, the Russian insulin market will still remain basically closed to local manufacturers.
[page 10 of #14, 21/04/2015]
He was certain of his road
In April, the “Editorial Fireplace” rubric hosted CEO of biopharmaceutical company FORT Anton KATLINSKIY. He told PharmVestnik Editor-in-Chief Herman Inozemtsev and correspondent Polina Zvezdina about cooperation with Rostech Group, plans for development of FORT manufacturing site as well as Rostech’s intent to enter the Russian medical market.
[page 11 of #14, 21/04/2015]
Unreal seven years
Long-term drug supply contracts have a number of drawbacks
Among the speakers of the conference “The Russian Pharma Market as Viewed by the Experts” held in mid-March in St. Petersburg, there was only one representative of state authorities, namely Lyudmila SYCHEVSKAYA, Head of the Department for Organization of Work of Pharmaceutical Agencies and Enterprises under the City Administration’s Health Committee. The budgetary allocations for healthcare in St. Petersburg this year are quite impressive at more than 10 bn RUB; nonetheless, there is still a severe shortage of money, Lyudmila SYCHEVSKAYA comments.
[page 12 of #14, 21/04/2015]
Annual measuring
Pharmaceutical manufacturers of Volga Federal District disclosed their production volumes
As of 2014, pharmaceutical facilities of Volga Federal District (VDF) did not show any change in commodities turnover. Whereas some manufacturers increased their output in value terms, others, on the contrary, failed to reach the planned growth indicators. Experts believe that the efficiency of operations of VFD manufacturers this year will depend on currency exchange rate fluctuations as well as solvency of customers.
[page 13 of #14, 21/04/2015]
Why drugs aren’t free of charge
In late May 2015, the 1st All-Russian congress “The Right to Drug” will be held. It is being organized by the Patient Advocate League. The main distinguishing feature of this event is its unprecedentedly large scale. League’s President Alexander SAVERSKIY is to discuss with the professional community the necessity of covering all Russian citizens with drugs for free. The expert notes that the Constitution of the Russian Federation provides for such a right. Mr. Saverskiy discussed the preparation for the congress as well as the reaction to this initiative by the market players with PharmVestnik correspondent Polina Zvezdina.
[page 14 of #14, 21/04/2015]
Faster than bunnies[1]
Belarusian pharmaceutical manufacturers solve the task of accelerated import substitution
Pharmaceutical manufacturers of Belarus, following the will of the President, must cover 50% (in value terms) of the local pharma market with their products through the end of the year. PharmVestnik tried to find out what the pharmaceutical manufacturing sector in Belarus looks like, and whether import substitution in such a short time presents a serious problem.
[page 15 of #14, 21/04/2015]
Will Rx drugs be advertised on TV?
Two months have passed since the time when Deputy Minister for Communications and the Media of the Russian Federation Alexey Volin submitted to the top management of the National Association of Television and Radio Broadcasters an anticrisis plan of the media industry development. Experts of the Ministry for Communications and the Media (Mincomsvyaz) provided for measures aimed at increasing earnings of the Russian media. E.g. they suggest lifting restrictions on advertising alcoholic drinks and Rx drugs as well as shifting responsibility for advertising dietary supplements from the publisher to the advertiser. Mincomsvyaz informed that currently the fate of this initiative depends on the professional community. Nevertheless, according to PharmVestnik, the work on the anticrisis plan continues, among other things, jointly with officers of the Department for Control over Advertising and Unfair Competition under the Russian Federal Antimonopoly Service (FAS). It is worth noticing that representatives of the Department for Control over Social Sphere and Trade under FAS, which is specific to the pharma market, are against permitting Rx drug advertisements stating that quite a lot of doubtful initiatives have been suggested lately under the pretext of anticrisis measures. The Ministry of Health has ignored PharmVestnik’s request for information. Should advertising of Rx drugs be permitted in all mass media? That was the question that PharmVestnik correspondent Polina Zvezdina addressed to some market experts.
[page 16 of #14, 21/04/2015]
Keeping abreast
Currently, pharmacists are required to demonstrate a high level of professional training and a continuous increase of their knowledge. However it is often difficult to allocate time for studying given the tight schedules. Chief of information and training site PHARMEDU Natalia KOVALENKO discussed with Pharmvestnik the way to upgrade one's skills in a quality way without detriment to work and with maximum convenience.
[page 18 of #14, 21/04/2015]
Long-awaited “prey”
The early 2015 was marked with upsurge in M&A deals
Pharmaceutical companies devoid of M&A deals in 2014 were zealous in Q115. Hungry “hunters”, including AbbVie and Valeant, were looking for “prey” for three months, although this time it was smaller than the one that escaped from them in 2014.
[page 20 of #14, 21/04/2015]
Device-centered business
TOP10 manufacturers of medical equipment and devices by sales in 2014
Analysts split large manufacturers of medical equipment and devices into three groups: companies specializing in manufacturing of solely this kind of products; corporations including some businesses that do not deal with health products; and mixed companies manufacturing both drugs and medical equipment or devices. Experts believe that all these groups will be faced with dramatic changes in 2015 against the background of the events of the previous year.
[page 21 of #14, 21/04/2015]
On the verge of changes
Report on pharmaceutical distributors sector as of 2014
We have got accustomed to the fact that the distributor rating is led by Katren, which is not a Moscow-based company either de jure or de facto. And although Protek has been close on its heels for a number of years running, it is hardly likely that someone may predict a change of the leader shortly. It is possibly more realistic to expect changes among the other wholesalers’ ranks.
[pages 22-24 of #14, 21/04/2015]
Product manager in a haze
Collective irresponsibility typical for large pharmaceutical companies negatively affects the relationships with clients — physicians, opinion leaders etc.
[page 25 of #14, 21/04/2015]
Pricing models at pharmacy chains
The article published in Pharmvestnik is a newspaper version of a chapter from the book “Practical Tools of Increasing Profitability of Pharmacy Business” currently planned for print. It continues a series of articles covering key principles of an economic approach to pricing in pharmacy business and pointing out basic mistakes.
[page 26 of #14, 21/04/2015]
“Cut of cards”
Is a pharmacy obligated to have a bank card machine? What is the absence of such machine fraught with? May a pharmacy incur liability if the bank card machine is out of service for the whole day, and a customer expresses displeasure with the situation? It is worth paying attention to the fact that from January 1, 2015, a pharmacy may be held administratively liable for the absence of such machine.
[page 27 of #14, 21/04/2015]
Not in a shy way
Today modesty is perhaps the least demanded trait of character in the theory of success, and shyness is considered to be something close to pathology. A modern outlook of career progress and self-fulfillment challenges human right to modesty, while there is always talk on the importance of being able to “sell oneself” all around. In the meantime, modesty does not necessarily mean the absence of success in achieving one’s goals.
[page 30 of #14, 21/04/2015]
[1] “Bunny” (zaychik) is an unofficial name of Belarusian ruble.
