Food retailers still after selling drugs
[PharmVestnik # 32, 11/10/2016, p. 1, cont’d p. 2]
Local businesses consider billion-ruble-worth state preferences insufficient support
Businesses choose to refer to the funds invested by the government into the local pharma industry development as to support tools rather than preferences. In their opinion, this would be a more precise definition of the special-purpose instruments that have been actively implemented since 2014. While breaking them into two categories, i.e. anti-crisis and purpose-oriented in respect of the Federal Target Program Pharma-2010, spokespersons for Russian pharmaceutical companies do not deny that they have been able to benefit from both. Yet, they consider insufficient the overall support concept being implemented by the government. Such opinion was voiced within the framework of the 7th international conference “What is going on in the pharmaceutical market?” hosted by Infor-media.
[PharmVestnik # 32, 11/10/2016, p. 4]
Key to price-cutting
FAS to broaden control over intellectual property rights
A compulsory licensing was one of the topics on the agenda of the 7th international conference “What is going on in the pharmaceutical market?”. First this initiative put forward by the Federal Antimonopoly Service (FAS) was thoroughly analyzed by lawyers, patent law experts, and economists. Then the floor was taken by Timofey Nizhegorodtsev, Director of the FAS Social Affairs and Trade Control Department, who assured that there was no threat in store for the rights owners. Now it is everyone’s guess why this issue was raised at all.
[PharmVestnik # 32, 11/10/2016, p. 4]
FAS permits advertising of RIA Panda dietary supplements; manufacturer still unhappy
The Federal Antimonopoly Service (FAS) lifted a ban on advertising of the unfortunate male dietary supplements Ali Caps Plus and Sealex Forte Plus manufactured by RIA Panda. Shorty, their adverts will return in full. Nonetheless, the manufacturer’s top management believes that the witch hunting in respect of the above products triggered off by the competitors is still underway, and that the market outlook is rather dull.
[PharmVestnik # 32, 11/10/2016, p. 5]
Big money does not like publicity
Journalists do not think that pharma industry is transparent
On October 1st, Sochi was the venue of the conference “A communication system in the pharmaceutical industry” hosted by Petrovax Pharm and Interros Group. The journalists and leaders of pharmaceutical industry associations who gathered at this discussion platform tried to understand why pharma would not tend to be transparent and how the industry would be able to manage its public image on the media scene. Both parties had claims against each other. According to experts, the earlier the parties clear the air the better for the Russian healthcare as a whole.
[PharmVestnik # 32, 11/10/2016, p. 6]
Cartel agreement-based treatment
FAS is after pliable pharmacy sector players
In late August, the Federal Antimonopoly Service (FAS) reported about having detected price fixing arrangement signs in the sphere of government drug and medical device biddings. According to an official FAS statement, cartel agreements on the pharma market embraced nearly entire Russia’s territory, their manifestations having been detected in more than 700 biddings.
[PharmVestnik # 32, 11/10/2016, p. 6]
Pharmacies rarely insure against non-payment risks in recession period
Currently, less than 70% deals on the pharma market are insured, which vividly illustrates that this instrument is underdeveloped. Payment discipline on part of pharmacies leaves much to be desired; therefore the distributor insurance is limited, plus insurance premiums are rather expensive, plus there are very few insurance companies working with pharma industry customers. That is why a distributor remains the principal insurer. Is there anything this business owners shall worry about?
[PharmVestnik # 32, 11/10/2016, p. 7]
Steering due localization
Import substitution in Russian pharma industry impossible without state support
Pursuant to the President’s order, by 2018, 90% of the drugs on the VED list will have to be provided for by local manufacturers. As at the end of H116, import substitution accounted for 76%. Under the Seven Diseases program, the share of local drug grew from 4.6% in 2011 to 35% in 2015. This data was cited by Olga Kolotilova, Director of the Pharmaceutical and Medical Industry Development Department of the Ministry of Industry and Trade, speaking at the 3rd International Scientific and Practical Conference “Evaluation of health technologies: innovative technology implementation”.
[PharmVestnik # 32, 11/10/2016, p. 8]
Medical device manufacturers question tax exemption mechanism
On October 1st, the Federal law “On amendments to Part II of the Tax Code of the Russian Federation” became effective, pursuant to which the Russian medical device manufacturers purchasing imported raw materials and component parts were VAT exempt. It goes about products no similars of which are manufactured either in Russia or the other Eurasian Economic Union member states. The industry players support this move but believe that it will be difficult to secure tax exemption in practice.
[PharmVestnik # 32, 11/10/2016, p. 8]
Who is to pay for advances?
Experts discuss ways of funding up-to-date treatment
The innovation share in the total drug consumption is just about 12% in value terms. An absolute majority of innovative drugs on the Russian market are of foreign origin; the share of local innovative pharmaceuticals is still insignificant. Experts note that innovative medicinal products are basically not considered a priority in Russia. Ways to drastically change the situation were discussed at the 3rd International Scientific and Practical Conference “Evaluation of health technologies: innovative technology implementation”.
[PharmVestnik # 32, 11/10/2016, p. 10]
Finished and bulk drug imports to Russia, January—August 2016
Notwithstanding a significant growth of demand for local drugs both in 2015 and the 1st half-year of 2016, imported medicinal products still dominate on the Russian market in value terms. The finished and bulk drug imports to Russia as of January—August 2016 amounted to 373 bn RUB (at the prices of release for free circulation), ˃12% growth year-on-year in rubles.
[PharmVestnik # 32, 11/10/2016, pp. 12-13]
Common distributor files new lawsuits against Kazakhstan pharmaceutical manufacturers
Back in 2013, SK Pharmacia, Kazakhstan’s common distributor under the free medical aid program, had legal proceedings against local manufacturers but had lost then. This year, the distributor filed lawsuits again for delivery delays. PharmVestnik tries to find out what is behind this continuous litigation.
[PharmVestnik # 32, 11/10/2016, p. 16]
Clinical trials of an innovative antihypertensive drug to start in 2017
Research teams of the Siberian State Medical University and Lomonosov Moscow State University are nearing completion of preclinical trials of an antihypertensive drug. These trials were funded within the framework of the Federal Target Program Pharma-2020. The trials demonstrated that the drug was nontoxic and was effective over 24 hours. According to the developers, this drug will be a breakthrough in clinical practice as such products have not been launched to the world market over the last 15 years.
[PharmVestnik # 32, 11/10/2016, p. 17]
Bleach solution for financial bailout
Escom ramps up production during credit watch procedure
OJSC Research and Production Company Escom put in operation a new bleach solution shop with capacity of 1 mn liters a month. The product range expansion and an increase in the output of products in demand in the hospital sector coincided with the renewed infusion solution supplies to Stavropol territory medical and preventive treatment facilities. All these actions are aimed to improve the financial situation of the enterprise that is currently under a credit watch procedure.
[PharmVestnik # 32, 11/10/2016, p. 17]
