Current issue #42, 2016

Rigla to rejoin professional association

At the end of the year, Rigla surprised the market when it filed an application for joining the Russian Association of Pharmacy Chains (RAAS). It is worth noticing tha tRigla used to be a RAAS member, then pulled out of this association, after which participated in setting up another association, and finally quit it as well. The fact that Rigla is beingtornbetweendifferentopportunities is indicative of at least two things. Firstly, pharmacyassociationshaveso far failed to come to aformat that would be acceptable for all market players. Secondly, no matter how large apharmacyisit needs a group, with some minor exceptions.

[PharmVestnik # 42, 20/12/2016, p. 1, cont’dp. 5]

Ministry of Industry and Trade to continue assisting Russian pharma in accessing the market

The PharmMedProm (Pharmaceutical and Medical Industry) exhibition traditionally held in December was a progress report of a kind under the Pharma-2010 program. DeputyMinisterof Industry and Trade SergeyTSYB comments on the government program implementation as well as plans for the next year.

[PharmVestnik # 42, 20/12/2016, p.2]

Minpromtorg to continue supporting innovative drug R&D project

The Russian Ministry of Industry and Trade (Minpromtorg) completed the first stage of an innovation promotion program in the Promotion-2016 project office format. Aport folio of the most promising R&D projects was formed that was offered to potentialinve stors within the frameworkof a meeting of the Advisory Board for Foreign Investment in Russia and the 6^th Russian-Swedish economic forum “ANewInvestment Potential: Ideas and Opportunities”.

[PharmVestnik # 42, 20/12/2016, p.3]

Lawyers note that sentences for selling unregistered medical devices have been to omildsofar

The news on prosecutinga Samara entrepreneur who had been selling medical device sunregistered in Russia sparked an alarming interest. Lawyers state that there has been a growing number of applications from businesses requesting for a detailed explanation of cases that may potentially be brought in guilty. However, lawyers find it difficult forecasting the developments if a criminal investigationis launched because of a limited number of precedents.

[PharmVestnik # 42, 20/12/2016, p.6]

The Russian Railways may think again about creating a pharmacy chain

The Russian Railways (RR) health system that is Russia’s largest network of privatelyfunded medical and preventive treatment facilities embraces 75 regions and consists of 173 healthcare centers, i.e. hospitals, outpatient clinics, and site medical facilities (18,000 beds in total). TheRR-Medicine (RZhD-Meditsina) healthcare centers employ 65,000 healthcare workers; of them, physicians account for 20%, andnurses – for 43%.Elena ZHIDKOVA, Head of Central Health Director at eaffiliated with Russian Railways OJSC, tells in detail about this largest segment of the medical services market.

[PharmVestnik # 42, 20/12/2016, p.8]

Debt collectors coming to pharma

The debtre payment situation is getting worse in pharma as well as in many other industries. Under the circumstances, creditors increasingly of ten resortto debt collectorservices. However, experts believe that debt collectors lackefficien r ecovery tools, and that one must go to court anyway to collect “very bad” debts.

[PharmVestnik # 42, 20/12/2016, p.9]

Experts discussed drugmarking and pricing

On December 8^th, Ufa was the venue of the forum “Health Industry: Bashkortostan’2016”. The pharmamarket players who arrived to Bashkortostan from Moscow have expressed the hope that the Russian pharma had a promising future. It turned out that the share of the local pharmaceutical products had been growing, even if slowly. The biggest problem is low price simposed by omnipresent large pharmacy chains.

[PharmVestnik # 42, 20/12/2016, p.10]

Pharma market players looked into future

Among the main topics being discussed this year, there are some that will remain challenging for all market players in the coming year as well. The roundtable “Domestic pharma manufacturing: the results of 2016 and prospects for 2017” hosted by the Association of Russian Pharmaceutical Manufacturers within the framework of Apteka-2016 Forum covered drug marking, three-stage preferences, and drug pricing.

[PharmVestnik # 42, 20/12/2016, p.14]

Experts thinking over ways to kill hepatitis Ctothebenefit of all people

According to the Ministry of Health, 1.8 m people in Russia are infected with hepatitis C virus. Themedicalcommunityestimatestheshareofviral hepatitis patientsat 4.1% of the total population; it is difficult to provide more accurate statistics due to several factors. Thestateannuallyspends48bnRUBforhepatitistreatment; atthesametime, lessthan15% of the patients diagnosed receive treatment. Asaresult, just 3.5% of the patients are officially consideredtreated. Such data was present edata paneldiscussion in Mosco wthat covered funding of socially important diseases treatment, including hepatitis C.

[PharmVestnik # 42, 20/12/2016, p.16]

Rules for a rational drug name choice approved

OnNovember 18^th, theRussianMoHorderNo. 429 of 29.06.2016 “Onapprovaloftherules for a rational human drug name choice” became effective. Pursuant to this document, it is prohibited to register drugs with similar names but different formulas and action. No Russian medical statistics is available on prescriber mistakes due to drug name confusion. In the USA, 7,000 patients die annually because of such mistakes.

[PharmVestnik # 42, 20/12/2016, p.18]

Ukrainian pharma market report, Q316

AsofQ316, Ukraine’sout-of-pocketsectorshowedalong-awaitedgrowthin USD, albeitinsignificant, justat 0.7%year-on-year. Agrow thin realterms was4.3%y-on-y. Overthefirst 9 monthsof2016, drug sale sinthe out-of-pocket sector reached 1639.6 m USD (1150.0 m packages).

[PharmVestnik # 42, 20/12/2016, pp.24-25]

Meeting apartner

Kazakhstan pharmamarket report

Kazakhstan pharma market is the largest and best structured in Central Asia. At the same time, it is inferior to the Central and Eastern European market in terms of the size and business environment quality.

[PharmVestnik # 42, 20/12/2016, pp.26-28]

Conservatism hinders mobile medical devicesegment development

Accordingtoevecare.ru, by2017, the Russianm Healthmarket will account for approximately 3% of the world market at 800 m USD. Analystsforecastthatby2017, Russia will rank sixth in the world in terms of mHealth technology earnings. Market players confirm the trend, buttheir growth rate fore casts are much more reserved.

[PharmVestnik # 42, 20/12/2016, p.31]

Cosmeceuticals to sell at supermarkets

L’Oréal and Pierre Fabre (bothFrance) launchedtheircosmeceuticalssalesatRussianmassmarketchains. Thisannoyed pharmaceutical retailers that have been promoting such goods as eligible for sale at pharmacies. However, experts believe that the French maychange their minds if the experiment fails.

[PharmVestnik # 42, 20/12/2016, p.31]