Social manipulations
Moscow region’s Ministry of Health and leading pharmacy chains make arrangements on discounts
[PharmVestnik # 27, 08/09/2015, p. 1, cont’d p. 4]
Not to be eliminated
Government does not need Roszdravnadzor
In early September, Vice-Premier Olga Golodets informed that the Russian Government was discussing a possibility of transferring the functions of the Federal Service for Surveillance in Healthcare and Social Development (Roszdravnadzor) to the Federal Service for Surveillance of Consumer Rights Protection and Human Welfare (Rospotrebnadzor). This information has immediately alerted the Ministry of Health to declare that the industry needed an independent highly professional monitoring service protecting citizens’ rights to medical aid, efficacious and safe drugs and medical devices, which, in the ministry’s opinion, Roszdravnadzor currently embodies.
[PharmVestnik # 27, 08/09/2015, p. 2]
Fighting over debts
Counterparts’ dispute moved to a new level
An ordinary dispute between a wholesaler and a pharmacy chain has gone public. In late August, JSC RPC Katren forwarded to 11 largest distributors a letter stating that pharmacy chain Aprel (Krasnodar) owed Katren more than 12 mn RUB. Letters containing uncomplimentary remarks regarding the pharmacy chain were also sent to the Krasnodar Territorial Department of the Federal Tax Service and Southern Branch of the Bank of Russia. In turn, the pharmacy chain Aprel distributed among the company’s partners a letter carrying its view of the situation.
[PharmVestnik # 27, 08/09/2015, p. 3]
Dodging the Globe
Sanctions do not hamper international cooperation
At the meeting with the President of Egypt at the end of August, Minister of Industry and Trade Denis Manturov discussed cooperation prospects in the pharmaceutical field. But the “pharaoh country” is not the only potential partner. The Ministry of Industry and Trade retargeted to developing relationships with Latin American, African, and Asia-Pacific countries already in the past year. Experts are sure that this step was partially forced, but it is quite advantageous for the pharma industry.
[PharmVestnik # 27, 08/09/2015, p. 5]
Winter close at hand
Crisis to make pharmaceutical distributors fewer
Trading companies, including distributors, survived the 1st half-year quite well due to the growing prices and demand preserved by inertia. However, pharmaceutical wholesalers’ results after the first wave of the crisis are highly divergent. Some have gained due to the crisis, while others have lost. This means than not all will be able to survive the effects of the second devaluation wave that struck in August.
[PharmVestnik # 27, 08/09/2015, p. 6]
Packages don’t bring happiness
Pharmaceutical manufacturers gaining profits
In August, the Russian Federal State Statistics Service (Rosstat) stated that in the 1st half year profits of the Russian companies went up 38.4%. Reports of the public pharmaceutical manufacturers confirm this statement. At the same time, the GDP decreased by 3.4% and manufacturing output — by 2.7%. Economists maintain that the situation has to do not only with inflation but also with tightening belt skills.
[PharmVestnik # 27, 08/09/2015, p. 7]
Whether rational saving is feasible in making drug lists
Experts state that over a few past years, the Russian healthcare has been significantly underfunded. The state expenditures for one of the most socially sensitive industries, which is healthcare, range within 3.6—3.8% of the GDP. At the same time, it is presently difficult to forecast a growth in funding. Therefore the most compelling approach is analysis of disease treatment and prevention regimens providing for a more rational use of the resources available irrespective of their volume. Of this opinion is Alla RUDAKOVA, Professor of Health Economics and Management Department of St. Petersburg Chemical and Pharmaceutical Academy. PharmVestnik observer Oxana Baranova discussed with the expert ways to implement a rational economy principle prior to a regular revision of the VED list by the Ministry of Health.
[PharmVestnik # 27, 08/09/2015, p. 9]
Hearing issues
Patients cannot afford maintenance of cochlear implants
In the past summer, Russia started a free of charge replacement of cochlear implants for the deaf children, the Ministry of Health press service informed on August 27. The last PharmVestnik issue dwelled on the problems related to the primary implantation of the speech processors (see “Nothing to substitute with”, PharmVestnik # 26, 01.09.2015). But maintenance of the hearing devices and rehabilitation of the patients that have already undergone implantation are also a problem. How and at whose expense is an outer part of a cochlear implant currently being replaced on schedule and ahead of schedule? What decision-making by the officials may help regulate this field? The leader of the parents’ association “I Hear the World” Dmitry KULIKOV shared his view of the situation with PharmVestnik observer Anna Kurskaya.
[PharmVestnik # 27, 08/09/2015, p. 10]
Import substitution racing
Devaluation of national currencies inspires Russian and Byelorussian officials to rely on accelerated import substitution
The year 2016 when a common drug market will become operative in the Eurasian Economic Union countries does not promise any surprises. The new parameters of the pharmaceutical product “locality” when the packaged drugs will not be considered local will have an insignificant effect on the import substitution indicators achieved. However, both Russia and Byelorussia may just dream of a growing share of the innovative pharmaceuticals.
[PharmVestnik # 27, 08/09/2015, p. 11]
Retail “seesaw”
Out-of-pocket pharmaceutical market report, H115
Over the 1st half of 2015, it was only sales in the national currency that demonstrated positive dynamics in the out-of-pocket sector (+10%). However, the exchange rate volatility boosted an interest to local drugs, which resulted in their sales growth by 21% in value terms – a record of the kind for this market segment.
[PharmVestnik # 27, 08/09/2015, pp. 12-13]
“Aristocratic” disease
Antimigraine drug market report, H115
According to the WHO, about 14% of the world population suffers from migraine. In Russia, there are about 20 mn people diagnosed with this disease. Therefore, it is no wonder that the Russian antimigraine drug market is rather large in value terms (494.7 mn RUB as of H115), which is comparable with the insulin market.
[PharmVestnik # 27, 08/09/2015, pp. 14-15]
“We spoil whatever we can reach out to”
Insignificant changes in the drug package or dosage do not affect the drug’s therapeutic properties but give a local manufacturer the right to apply for re-registration of the maximum sales price. This approach is used by the manufacturers producing drugs in the lowest price segment, who try to retain manufacture of cheap drugs under the growing inflation and exchange rates.
[PharmVestnik # 27, 08/09/2015, p. 18]
Whatever it takes…
A decreasing purchasing power of the population coupled with tough competition forces pharmacies to pursue aggressive marketing policies, sometimes violating the advertisement regulations. However, a chance of getting away with violations is almost nil, as not only regulators and competitors are up-and-doing but also consumers promptly inform the competent authorities.
[PharmVestnik # 27, 08/09/2015, p. 19]
