Russian manufacturers cannot reach common ground on three-stage preference structure
[PharmVestnik # 40, 06/12/2016, p. 1, cont’d p. 9]
Pharma businesses need more accurate and longer-term forecasts
Forecasts presented by analysts virtually every month do not provide for creating in the heads of pharma top managers of a clear picture of the industry future development in Russia. When some say that the crisis is over while others demonstrate that the market is still going down, it is rather difficult to strike the right balance. The year 2016, as seen by business community spokespersons, feels like somewhat stable, but whether there is a risk of stagnation is highly questionable. Pharma businesses would like to look farther into the future, however analysts warn: it is not a problem to make long-term forecasts; the problem is that they do not make sense under the circumstances.
[PharmVestnik # 40, 06/12/2016, p. 2]
A reasonable reimbursement mechanism of drug coverage of children nonexistent in Russia
In different Russian regions, children entitled to preferential drug coverage are frequently offered pharmaceutical products not approved for them. As a rule, it is easier for regional authorities to make procurement for all beneficiaries without breaking them into categories. In such cases, the procedure is simpler, and the regulators ask less questions. A universal drug procurement mechanism for children is nonexistent so far.
[PharmVestnik # 40, 06/12/2016, p. 3]
Lost in the World Wide Web
Legalization of online drug sales to proceed in stages
On November 24th, Moscow was the venue of the forum “Internet+Medicine” covering telehealth and online drug sales. It turned out that the regulators and officials interlinked these two notions; thus, legalization of online drug sales has been postponed until spring.
[PharmVestnik # 40, 06/12/2016, p. 6]
Struggle for quality underway
Experts seek to bring medical products control up-to-date
According to the Federal Service for Surveillance in Healthcare and Social Development, in the 1st half of 2016, 546 thousand medical products were withdrawn from circulation, such as unregistered, defective quality, and even counterfeit products, including medical devices, reagents, and culture media. In 2016, the regulator rejected 82% of all medical products selected for assessment. Such information was made public on November 24th in Ekaterinburg within the framework of the forum “Health Industry: Urals’2016” that brought together heads of manufacturing facilities, distributors, representatives of authorities and expert communities.
[PharmVestnik # 40, 06/12/2016, p. 8]
Pharma investments total 120 bn RUB a year
In Russia, pharma investments total nearly 2 bn USD despite the serious investment attractiveness issues that have existed always but that have aggravated after 2014. Experts explain this success by the import substitution trend as well as a relatively stable drug demand. Nonetheless, it is not raining cats and dogs in terms of money due to a number of adverse factors, such as imperfect legislation, large percentage of counterfeit products, unfavorable tax regulations, and even inefficient antitrust policy.
[PharmVestnik # 40, 06/12/2016, p. 8]
Government not ready to approve an extended VED list
Representatives of both local and foreign pharma manufacturers associations as well as patients and physicians wonder why the work on the VED and other drug lists extensions has been suspended at the very end. Back on October 14th, the commission responsible for drafting such lists decided to include 24 new pharmaceuticals into the VED list, however, on November 15th, it virtually refused to finalize the process. The reason is obvious: the government is unwilling to assume new drug coverage obligations due to a shortage of funding. The MoH officials assert that the problem is associated with the procedure.
[PharmVestnik # 40, 06/12/2016, pp. 10-11]
Between the past and the future
Pharma changes its attitude to digital promotion
The domestic pharma industry, while being dedicated to innovations, remains conservative when it comes to using digital technologies still giving preference to traditional approaches. At the same time, the reality makes the pharma market players change their attitude to the novel information channels. The ways of developing a balanced digital tech model was the center of discussion at the recent meeting of the Russian Association of Pharmaceutical Marketing devoted to digital marketing.
[PharmVestnik # 40, 06/12/2016, pp. 12-13]
Putting down new roots
Kaluga region government promises to increase pharmaceutical production fivefold by 2021
The Kaluga regional pharma cluster established 4 years ago is among 11 leading clusters in terms of the innovative development. At the same time, it is the only in Russia holder of the ESCA Cluster Excellence bronze certificate. However, experts assert that this is only the beginning. The main parameter of the cluster policy efficacy is the export potential development. Such is the challenge issued by the government.
[PharmVestnik # 40, 06/12/2016, p. 14]
Experts discuss medical industry prospects
On November 30th, Москве hosted the conference “The Russian Industry Modernization: Development Priorities”. PharmVestnik visited the section on the government policy in the development of public health, pharmaceutical, and medical industry and heard quite a lot of interesting proposals on how to bring the industry up-to-date.
[PharmVestnik # 40, 06/12/2016, p. 15]
There is room for cutting prices
Officials and manufacturers argue about drug prices
After the Russian Federal Antimonopoly Service (FAS), having analyzed the world’s pharma markets, found the countries with lower than in Russia prices for drugs used in high-cost diseases treatment in case of centralized drug procurement, the agency addressed the relevant MA holders in Russia recommending them to cut the prices. In total, the FAS had claims in respect of 48 pharmaceutical products. On November 21st, it became known about voluntary price cuts for 12 drugs.
[PharmVestnik # 40, 06/12/2016, p. 16]
Public health and drug coverage funding to remain the same in 2017
Forecasting in always difficult, especially when the future of the Russian public health is concerned. In this sense the title of the event hosted by Aston Group, namely “Forecasting the Unforecastable”, is self-explanatory. Nonetheless, the results of the research presented by the company assume that no government funding growth in respect of the health industry and drug coverage programs may be expected in near future.
[PharmVestnik # 40, 06/12/2016, p. 17]
Saving-based development
Rating of the Russian pharmacy chains, Q1-316
The Russian pharmaceutical retailers approached this autumn full of hopes and doubts. The hopes were associated with a potential demand restoration for drugs and parapharmaceuticals as the high season approached. Moreover, the general economic environment, while not providing grounds for unbridled enthusiasm, showed signs of stabilization, following which growth might be expected. And these hopes have been fulfilled as the beginning of autumn was quite favorable for the pharmaceutical retailers.
[PharmVestnik # 40, 06/12/2016, pp. 20-23]
Cosmeceuticals market dynamics, Q1-316
Cosmeceuticals are part and parcel of a pharmacy product range. A reasonable inclusion of this product group into a pharmacy portfolio provides, on the one hand, for meeting the customer demand and, on the other hand, for boosting the turnover.
[PharmVestnik # 40, 06/12/2016, pp. 24-25]
Two viewpoints on results of public opinion poll on compulsory medical insurance
Recently, the Social Project Planning Center “Platform” presented an analytical report titled “The Russian population attitude to the compulsory medical insurance system” (http://pltf.ru/2016/10/11/otnoshenie-k-oms/). The report was prepared based on the results of a public opinion poll, public monitoring, and expert opinion analysis voiced during the panel discussion on September 7th. This report is posted on the Center’s website. PharmVestnik analysts thought it interesting to compare the conclusions made in the report with their own interpretation of the respondents’ feedback.
[PharmVestnik # 40, 06/12/2016, pp. 26-27]
Philosophic question of oncohematology
Drug coverage computerization being implemented in St. Petersburg
The 6th International Partnering Forum “Life Sciences Invest” hosted in November in St. Petersburg saw a special oncologist meeting on the municipal oncology service development. The meeting titled “Cancer management philosophy: drug manufacturer—physician—patient—society” was conducted under the aegis of the regional nongovernmental organization “St. Petersburg Physicians”.
[PharmVestnik # 40, 06/12/2016, p. 28]
Gosapteki to sell cheap private label contraceptives
The pharmacy chain “Gosapteki” (State Pharmacies), the largest pharmacy sector player in Omsk region, is actively selling private label products. During 2016, the chain has been ramping up cosmeceuticals production; in early 2017, it plans to start selling low-end contraceptives.
[PharmVestnik # 40, 06/12/2016, p. 29]
A new drug sales control system being developed in the Ural district
Sverdlovsk Federal Service for Surveillance in Healthcare and Social Development hires more employees. The new employees will audit pharmaceutical distributors and pharmacies for compliance with the license requirements. Since October, only this agency is authorized to do this kind of work. Experts believe that this is the first step towards a risk-oriented control model expected to be implemented in 2018.
[PharmVestnik # 40, 06/12/2016, p. 29]
