Panda’s bite
Court proceedings on sexual potency supplements expected soon
[PharmVestnik # 18, 31/05/2016, p. 1, cont’d p. 5]
Sources and amount of funding for orphan drug coverage not determined yet
As the year before, Genetika (Genetics) Association forecasts a collapse if the issue of allocating additional finance for the drug coverage of orphan disease patients is not resolved shortly. In 2015, a catastrophe was prevented due to transferring 12 bn RUB to Russia’s regions, which some experts evaluated as a one-time gusher before a large-scale All-Russia People’s Front forum. This year, in line with Genetika’s forecast, the situation has become very serious again. At the moment, it is only known that the issue of co-funding the regions is in the talking stage.
[PharmVestnik # 18, 31/05/2016, p. 2]
Plus innovations, minus oil
The 22nd Russian Pharmaceutical Forum was held in St. Petersburg
In mid-May, the 22nd Russian (Adam Smith) Pharmaceutical Forum was the arena for discussion of ways to overcome the recession, transfer of the Russian pharma industry to the GMP standards, drug insurance as well as current corporate affairs, which was quite traditional. Among the new topics were special investment agreements, product marking, and inspecting foreign manufacturer sites for GMP compliance by the Russian GMP Inspectorate.
[PharmVestnik # 18, 31/05/2016, p. 3]
Great Britain ready to further cooperation with Russian Pharma
A transformation of the import substitution idea becomes increasingly apparent. The slogan of “doing one’s own for oneself” has become outdated. Pharma businesses start discussing export potential development opportunities more actively. This topic was the focus of the conference “Pharmaceutics of the Future: Russia and Great Britain” held at Skolkovo Innovation Center. The British delegation enlarged on their nation’s leaders position aimed at creating the most comfortable conditions for foreign businesses operating in their territory. In turn, the local pharma experts complained about the drawbacks of the Russian legislation.
[PharmVestnik # 18, 31/05/2016, p. 4]
Glivec’s echo
Another generic may make its way to state budding prior to originator patent expiry
June 9 is a scheduled date of state bidding for lenalidomide supplies under the Seven Diseases Program. This will be the MoH’s second attempt to determine the supplier. The first bidding was postponed as the registration of lenalidomide generic completed in Russia, and the generic manufacturer wanted to participate in the bidding as well. The spicy bit of the situation is that lenalidomide molecule manufacture is protected by a patent expiring in 2022.
[PharmVestnik # 18, 31/05/2016, p. 6]
Ministry of Health denies cancellation of pilot drug insurance project launch
In mid-May, the media had it that the Ministry of Health thought better of launching a pilot drug insurance project. However, according to MoH’s officials, a scheduled pilot project involving coronary stenting patients is still under development. Simultaneously, the MoH intends to resolve the issues of product interchangeability, clinical recommendations, and reference pricing.
[PharmVestnik # 18, 31/05/2016, p. 7]
Expensive cost saving
Experts assert that healthcare allocations are spent unreasonably
Experts are sure that the last-generation drugs have basically no chance of making their way to the VED (Vital and Essential Drugs) lists. But if the approach to the drug choice is changed, and if methods are used that proceed not from the drug price but from treatment outcomes, then innovative drugs will become accessible. The participants of the roundtable discussion “Healthcare — Budget — Efficacy” hosted by the Rossiyskaya Gazeta newspaper were of the opinion that the government needs to learn how to clearly differentiate between a short-term benefit and strategic interests as treatment using cheap drugs just increases the health budget burden.
[PharmVestnik # 18, 31/05/2016, p. 8]
Foreign companies ready to continue investing in Russia
Within the framework of the 22nd Russian (Adam Smith) Pharmaceutical Forum in St. Petersburg, a traditional press briefing was hosted by the Association of International Pharmaceutical Manufacturers. Thanks to the presence at this briefing of Biocad CEO Dmitry Morozov, the disputes were quite hot.
[PharmVestnik # 18, 31/05/2016, p. 10]
Federal Tax Agency considers extending excise stamp system to drugs
The development of a drug marking concept has not been completed yet. The market players have set themselves up for a marking system complying with international standards. However, the government have not made up their minds yet. In late April, 2016, they charged the Federal Tax Agency under the Ministry of Finance with the development of such concept jointly with all parties concerned. Experts believe that the result may be unexpected.
[PharmVestnik # 18, 31/05/2016, p. 12]
Alliance with healthcare
Rating of Russian pharmacy chains, Q116
The spring of 2016 had no surprises in store for the retail segment of the Russian pharma market. There was a slight growth (1.7%) in value terms, given a 9% drug price inflation rate over the first three months of the year. The Pharmacy Chain 36.6, the most active retail segment player of the past years, has finalized its strategy. A large international sectoral investor has acquired a share in the company’s capital, while the pharmacy chain, in turn, has received full-fledged wholesale competencies. The focus of attention is Implozia, or, to be more precise, the leftovers of this asset after restructuring is complete, which is currently in its active phase.
[PharmVestnik # 18, 31/05/2016, pp. 13-15]
M&A’s in Russian pharma market, 2015
The asset swap activity in the local pharma industry has significantly subsided over the past two years. In 2014 vs 2013, the M&A sum total decreased twofold to 1.2 bn USD. This trend persisted in 2015 with M&A deals totaling approx. 0.5 bn USD, with the lion’s share generated by just two deals.
[PharmVestnik # 18, 31/05/2016, p. 16]
M&A potential in Russian pharma market evaluated at 2-3 bn USD
In 2015, Russia faced a new economic reality when it became obvious that the raw materials-based model had exhausted its potential. In that period, notwithstanding the fact that there emerged more of those willing to sell their assets at acceptable prices, the number of M&A’s has significantly decreased. Analysts assert that capital owners need to get accustomed to the new situation. At the same time, there is no apathy, and a number of deals are being already prepared for launch.
[PharmVestnik # 18, 31/05/2016, p. 17]
Phytotechnology to facilitate development of new drugs
St. Petersburg Chemical and Pharmaceutical Academy rehabilitated their seedling nursery in the Karelian Isthmus. The scientists plan to further develop the use of plants as a source of biologically active substances.
[PharmVestnik # 18, 31/05/2016, p. 20]
Reference drug supplies for clinical trials may be optimized
Reference drugs are used to prove equivalence of new drugs launched to the market. Most frequently, they are on the VED list; at the same time, their supplies account for an appreciable portion of clinical trial budgets. Corex Clinical Logistics CEO Konstantin MELNIKOV discusses problems and opportunities in this field.
[PharmVestnik # 18, 31/05/2016, p. 22]
No-zeal saving
Russian market environment requires revision of corporate strategies
In March 2015, within the framework of the 20th Conference “Pharmaceutical Business in Russia: Market Development Prospects for 2015” analysts forecasted a 12—15% market growth vs 2014. The article analyzes whether experts were right, and what pharma companies need to do.
[PharmVestnik # 18, 31/05/2016, p. 26]
