Current issue #27, 2016

A draft law on children’s health to be submitted to State Duma this fall

It took 8 years for this law initiators to convince their opponents that it was needed – ideally, as a federal law. Presently, a draft law “On ensuring the highest possible state of children’s health in the Russian Federation” has been developed and will be submitted by the Russian Public Chamber for the State Duma's review in the course of the fall session of 2016. The document developers celebrate their first victory as they have been able to prove that the dispersion of the existing legislative provisions among a large number of legal acts does not provide for a unified system, which means that their efficacy is virtually nil. However, specific provisions of the new draft law issue challenges so ambitious that it is likely to take a lot of time to discuss them.

[PharmVestnik # 27, 06/09/2016, p. 2]

“Happiness peddlers”

Devotees try to persuade the government to trade health expenditures for investment

The Russian Public Chamber and the Patient Advocacy League have called on Premier Dmitry Medvedev to speed up the implementation of the new citizen drug coverage system. In fact, they urge for a revolution in the approach to the nation’s health support. The difficulty is that the “revolutionaries” suggest that the government spend the money for something intangible.

[PharmVestnik # 27, 06/09/2016, p. 4]

A novel trade driver

Relevant ministries develop a distant drug sales mechanism

In late summer, another reason transpired to pay attention to the initiative that, if implemented, would dramatically change the drug retail sales structure. The relevant ministries were quick to respond to the government mandate to consider an opportunity of Internet trade liberalization. Drugs are among the goods subject to trade restrictions lifting.

[PharmVestnik # 27, 06/09/2016, p. 6]

Moscow demolished 14 pharmacies

Attempts to provide better urban amenities in Moscow have affected pharmaceutical retailers. According to AlphaRM, 14 buildings including pharmacies were wrecked on the night of August 28^th to August 29^th. Most pharmacies were located on the leased premises; therefore, pharma businesses took the government’s actions calmly. However, some business representatives admitted that they have lost their best places.

[PharmVestnik # 27, 06/09/2016, p. 8]

Profits of Russian pharma companies increased in 1^st quarter 2016

According to Rosstat, as of the 1^st quarter of 2016, profitable businesses account for 69.2% in the Russian economy. In the pharma industry, the situation is much better than in the country as a whole. Based on the public company reports, the share of profitable businesses nears 100%.

[PharmVestnik # 27, 06/09/2016, p. 11]

Higher math of distribution

Rating of Russian pharmaceutical distributors, H116

The number of players in the Russian pharma distributor ratings has been continuously reducing. Quite recently, we discussed who was to take up Oriola and Imperia Pharma’s market shares due to the termination of operations by these two companies. Now, it is time for Alliance Healthcare that has virtually closed down its regional operations as a result of restructuring launched by the new owners. Besides, another TOP10 player is going through serious financial troubles and, consequently, is losing its market share. To add to this, Stolichnye Apteki’s wholesale division is most likely to stop existing shortly.

[PharmVestnik # 27, 06/09/2016, pp. 12-15]

Ice broke up

Ukraine’s pharma market report, Q216

According to UPharma Consulting, the 2^nd quarter of 2016 brought hope for an end of the recession period in Ukraine’s pharma market. Over the report period, the retail pharma market decline rate in value terms has slowed down, whereas there was a 0.6% growth in real terms – for the first time since the 1^st quarter of 2014. Pharmaceutical sales amounted to 530.4 mn USD, or 371.4 mn packs. As a whole, as of H116, the Ukrainian pharma market shrank by 6.7% in value terms and 3.0% in real terms year-on-year.

[PharmVestnik # 27, 06/09/2016, pp. 20-21]

Cosmeceutical market report, H116

At Russian pharmacies, cosmeceuticals have for a long time been part of a standard product range. Over the past 10 to 15 years, the number of cosmeceutical trademarks at Russian pharmacies has been growing exponentially. Consequently, cosmeceutical categorization has become a burning issue; however, no quick and unambiguous solution has been found so far.

[PharmVestnik # 27, 06/09/2016, pp. 22-23]

Generium agreed with Tyumen Center of Excellence

The multidisciplinary Center of Excellence “Medical City” in Tyumen and the International Biotechnology Center “Generium” signed a cooperation agreement on cancer treatment. This center is to become a clinical trial site for new drugs and immunotherapy methods.

[PharmVestnik # 27, 06/09/2016, p. 26]

Novosibirsk scientists to boost chemotherapy efficacy

To treat specific types of cancer (rectal cancer, lung cancer), clinicians often use camptothecin drugs such as topotecan and irinotecan. They inhibit the cancer cell growth and damage their DNA. But these drugs are ineffective in some cases. Novosibirsk analysts and biologists help make cancer chemotherapy more efficacious.

[PharmVestnik # 27, 06/09/2016, p. 27]