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Current issue #33, 2016

Current issue #33, 2016

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Pharma market players worried about balance of power

A year ago, the Russian pharmaceutical leaders were a short way off “burying” the debt-stricken SIA International. Currently, they are worried to see the nearly bankrupt company re-emerging as a top player. The company’s ambitious plans aimed at strengthening its position and returning to the top distributor ranks inspire both the competitors’ respect and envy. However, the news regarding the fact that the pharmacy chains in which SIA International has a 25% share have received pharmaceutical licenses and are penetrating the market at a high rate opening a new pharmacy unit per day made the competitors really agitated. Experts, in turn, have not doubts that this project is a fat chance for the company’s owner to start a big game.

[PharmVestnik # 33, 18/10/2016, p. 1, cont’d p. 5]

Crimean health sector gets adjusted to Russian legislation

The Crimean healthcare upgrading process it not an easy one. The main challenge is to develop a beneficial population coverage system from scratch as such system has been nonexistent before the Republic of Crimea has joined Russia. At this point, it is required not only to develop and implement explicit mechanisms for the population demand calculation but also to change the ideology of the entire Crimean medical community. This issue was on top of the agenda of the forum “Crimean healthcare’2016” hosted by DSM Group in Simferopol.

[PharmVestnik # 33, 18/10/2016, p. 2]

Survival of the fittest

Minpromtorg promotes Russian pharma industry innovations

Within the framework of demonstrating Russian R&D results obtained in the course of the State Target Program “Pharma-2020” implementation, the Ministry of Industry and Trade (Minpromtorg) launched a promotion program in the project office format. Its main objective is to help Russian developers analyze the market, assess the prospects and patentability of innovative solutions as well as technological capabilities and economic potential for their scaleup.

[PharmVestnik # 33, 18/10/2016, p. 3]

Sovaldi of discord

Gilead’s originator drug generics move close to Russia

The first generic of sofosbuvir, a hepatitis C treatment, was registered in Belarus. Gilead that is the originator drug owner, did not patent the drug in that country, and, in accordance with the international law, Belarus has the right to manufacture and register the drug. The drug price in that country turned out to be higher than that of Indian generics but approximately 10 times lower than the originator brand price in Russia.

[PharmVestnik # 33, 18/10/2016, p. 4]

36.6 Group moves into new office and develops region-wise

In January 2017, 36.6 Group’s headquarters are to move from their Tishinskya Square office to Park Pobedy (Victory Park) Business Center. But the company still has a lot of work to do before it celebrates moving into the new office. One of the priority business development lines for the pharmacy chain is consolidating its positions in the Russian regions. This pharmaceutical retailer plans to open at least 30 new pharmacies in St. Petersburg until the end of this year.

[PharmVestnik # 33, 18/10/2016, p. 6]

On the verge of cell revolution

Biomedical product manufacturers waiting for permit

After the Federal law FZ-180 “On biomedical cell products” came into effect, 26 such products may be registered in Russia. According to Minister of Health Veronica Skvortsova speaking at the conference “Biotechmed”, animal tests have been successfully completed for all these products. Scientists believe that these innovative personalized products based on human biomaterials will provide for significant advances in the treatment of diseases that are currently considered cureless, e.g. oncologic, orphan, and genetic.

[PharmVestnik # 33, 18/10/2016, p. 7]

The king of Seven Diseases

Victor Kharitonin’s companies become principal suppliers under Seven Diseases program

Since the beginning of the year, the Ministry of Health held about 40 biddings under the Seven Diseases program to purchase some 26 bn RUB-worth drugs. Pharmstandard won the biddings to total approximately 11 bn RUB. In early October, it transpired that 70% of Biocad shares would be acquired by Joyful Group, an offshore company the ultimate beneficiary of which was allegedly Victor Kharitonin. This means that the Seven Diseases biddings won by Pharmstandard and Biocad should be added up, which exceeds 14 bn RUB thus amounting to more than half of the total purchases in value terms.

[PharmVestnik # 33, 18/10/2016, p. 8]

When will Russian pharma companies be able to compete with international players?

PharmVestnik newspaper, website, and TV Editor-in-Chief visited the CPHI Worldwide exhibition and conference in Barcelona. He shares his ideas and observations in respect of strategic prerequisites required both for the arguable import substitution and undisputed export potential of the Russian pharma industry.

[PharmVestnik # 33, 18/10/2016, p. 9]

EEU pharmaceutical market to operate de facto

As of today, the regulatory environment for the drug circulation within the framework of the Eurasian Economic Union’s common market has been formed. At the same time, in fact, the common market has not been launched into operation yet. The drug interchangeability issue that for quite a while has been putting a brake on this process has not been finalized so far. Back in August, EEC Chair of the Board Tigran Sarkisyan stated that an understanding of how the EEU member states were going to regulate that issue had been reached. In his interview to PharmVestnik within the framework of the 8th International Conference “What is going on in the pharmaceutical market”, Dmitry SHCHEKIN, Deputy Head of Division for Coordination of Drug and Medical Device Circulation under EEC Technical Regulation and Accreditation Department, disclosed the details pertaining to this issue.

[PharmVestnik # 33, 18/10/2016, p. 10]

Pharmaceutical advertising market (specialized printed medical and pharmaceutical media), H116

Notwithstanding the continuing drug market recession as is evident from the negative sales in real terms, the pharmaceutical advertising market (only specialized printed media are taken into account) as of H116 grew by 28% year-on-year to reach 794 m RUB. The market growth in figures (the number of advertising modules placed) is 6%, according to Contenta Medical Index research “Monitoring of Specialized Printed Media” by Ipsos Healthcare.

[PharmVestnik # 33, 18/10/2016, pp. 14-15]

Acquire and govern

Large pharmacy chains on new territory management methods

Within the framework of the 7th Pharmacy Summit held in early October, two largest pharmacy chains, i.e. 36.6 and Pharmland, shared their development plans. Neither of the companies spoke openly to the extent the competitors would like them to do; nonetheless, both companies shared their views of successful Russian market development models. By the market players’ universal consent, these companies were the pharmacy sector trendsetters. Although from all competitors approve of their work methods, these companies lead the ranks.

[PharmVestnik # 33, 18/10/2016, p. 16]

Probiotic market report, H116

Gastrointestinal drugs account for more than 18% of the drug market in value terms, their share continuously growing year to year. This report covers the probiotic drug market; this group is represented by multiple agents with a variety of characteristics.

[PharmVestnik # 33, 18/10/2016, p. 18-19]

Pharmacy chain appeals against supervisory authority’s judgment

The arbitration court of the Republic of Crimea held invalid the Financial Supervision Authority’s submission on the remedy of defaults found in the course of Krym-Pharmacia audit. It follows from the case papers that this audit was superficial and did not follow the established procedure. In his interview, Krym-Pharmacia ex-CEO Vyacheslav Dobretsov, who had been found guilty of financial impropriety and removed from his post, related that the court judgment gave him moral satisfaction.

[PharmVestnik # 33, 18/10/2016, p. 22]

Narcotic detection methods established in Ekaterinburg

The prevalence of “designer” narcotics in the Ural Federal District has decreased over the last two years. Such conclusion was made by the employees of the Ural Federal University’s laboratory performing pharmacological assessment of narcotic substances and similars.

[PharmVestnik # 33, 18/10/2016, p. 23]

A new approach by courts to certificates of delivery for drugs supplied to pharmacies

Presently, courts have two categories of proceedings in respect of recovering by pharmacy chains of the cost of drugs delivered. The first category includes the cases in which delivery is certified by hard-copy consignment notes. The second category embraces the cases with electronic consignment notes that are submitted to the court as registers signed with digital signatures.

[PharmVestnik # 33, 18/10/2016, p. 28]

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