Rating of most influential subjects of the Russian pharma market, 2016 (1)
To be continued in the next issue.
[PharmVestnik # 05, 14/02/2017, p. 1, cont’d pp. 4-5]
It is proposed to remove homeopathic remedies from the healthcare system
The Russian Academy of Sciences (RAS) declared homeopathy a pseudoscience and recommended that the Ministry of Health (MoH) removed homeopathic remedies from circulation at state and municipal healthcare institutions. It was also recommended to mark the packaging with a special sign clearly indicating the absence of evidence-based clinical efficacy and indications for use. Special recommendations were also issued for the Federal Antimonopoly Service, Federal Service for Surveillance in Healthcare and Social Development, Eurasian Economic Commission, and insurance companies. Special attention was paid to patients, pharmacists, general practitioners, and homeopathists themselves. The MoH has hastily convened a Working Group to sort out the situation.
[PharmVestnik # 05, 14/02/2017, p. 3]
RAS Commission memo may change pharma market structure
PharmVestnik has an analytical summary of homeopathic manufacturers sales as of 2013—2016. This document explains the differences in the marketing research data on the homeopathic segment and makes it possible to assume that the RAS Commission memo on combating pseudoscience may be targeted at a specific manufacturer.
[PharmVestnik # 05, 14/02/2017, p. 3]
Another stage may be added to the three-stage structure
The Russian government and pharma community continue working on API manufacturers support measures. Currently, API production setup reimbursement and low-interest loan instruments are in place; the only instrument lacking is the one to provide for a guaranteed demand. While a relevant solution in the finished drug segment was not hard to plumb (i.e. the “odd-man-out” regulation), the situation in the API segment is more complicated as APIs are not procured by the government. The initially proposed three-stage structure has been heavily criticized. Lengthy discussions yielded a more complex support structure proposed by the Governmental Expert Council (PharmVestnik has a relevant document copy).
[PharmVestnik # 05, 14/02/2017, p. 6]
A sustainable crisis
Analysts forecast a moderate pharma market growth in 2017
Experts mainly hope for a retail sector growth when speaking about the market growth overall. The government-funded segment will continue stagnating. Analysts believe that the main thing for companies planning their development strategies for this year is to base themselves not only on data provided by analytical agencies but also on their own understanding of the fact that crisis has its inherent sustainability.
[PharmVestnik # 05, 14/02/2017, pp. 8-9]
Pharma companies waiting for a government resolution on drug marking
On February 1st, a pilot drug marking project was launched in Russia. The experiment is scheduled to be completed on December 31st, 2017, after which a decision will be made on extrapolating this experience on all drugs selling on the Russian market. However, this pilot project has been launched just on paper so far, as relevant documents are still in progress. PharmVestnik journalist saw that with her own eyes when she visited AstraZeneca manufacturing site in Kaluga region.
[PharmVestnik # 05, 14/02/2017, p. 10]
Pharma innovations contained by lack of funding, not by cadre
Last week, the Russian Chamber of Commerce and Industry held a Science & Technology Council meeting on innovative projects. The experts, among them those representing Kaluga Pharmaceutical Cluster, discussed a draft occupational standard “Innovative project evaluation specialist”. The meeting participants agreed that adequate staffing was not the major issue in the innovation segment. Pharma startups have been mainly hindered by the lack of reasonable funding vehicles and appropriate regulatory environment.
[PharmVestnik # 05, 14/02/2017, p. 10]
Antibiotics really stop being dispersed without prescription
In some Russian regions, pharmacies suddenly stopped dispersing antibiotics without prescription. This happened after the Federal Service for Surveillance in Healthcare and Social Development threatened the pharmacies with six-digit-ruble fines for freely selling antibiotics and the like. Experts foresee that such practice will soon spread through entire Russia. De jure, all that was to happen back in 2014; however, no inspections have been made, and nobody has been penalized. Market players think that the idea is correct overall, however, if implemented solely by tightening control, it will negatively affect both honest pharmacy chains and customers.
[PharmVestnik # 05, 14/02/2017, p. 11]
Pharma manufacturers getting ready to participate in pilot risk-sharing projects
This spring, pilot projects on risk-sharing model implementation in the government drug procurement are to be launched in three Russian Federal subjects, i.e. city of Moscow, Moscow region, and Kaluga region. These subjects meet the criteria stipulated in the Russian Government Order No. 136-r of 30.01.2015 (on updating the drug coverage system for specific categories of citizens). Eighteen companies were willing to sign experimental agreements. Seventeen applications from 9 pharma companies on 12 diseases received a preliminary approval by the Center of Medical Aid Assessment and Quality Control. Procurement prices will be determined by agreement with specific manufacturers. To date, no decision on the drugs has been made. It will be made by the MoH based on the assessment results. Therefore, the winning companies are unknown so far. However, it is known that viral hepatitis C, rheumatoid arthritis, Crohn disease, ulcerative colitis, cancer, and blood disease treatment drugs are under review. A MoH meeting is scheduled for the end of February that will involve participation of the above federal subjects. As a result, specific pilot project participants will be determined.
[PharmVestnik # 05, 14/02/2017, p. 12]
Several pharma companies proposed a pilot project within the framework of EAEU common market
Without waiting for a mass start of drug registration based on the EAEU common regulations, several pharma companies declared their readiness to master the registration procedures on several drugs. This initiative was discussed at a Eurasian Economic Commission Working Group meeting. However, the authorized agencies put the decision-making on hold to explore the issue.
[PharmVestnik # 05, 14/02/2017, p. 13]
Manufacture of herbal medicinal products in Russia to be revived based on traditional Chinese medicine
On February 1st, a project office of the professional association “Preventive Medicine” started its operations at the Strategic Initiative Agency co-working center. This is one of the subprojects of the HealthNet strategic project of the National Technological Initiative program. The first project session gathered together representatives of scientific and medical communities who discussed ways to form a modern healthcare industry. Pursuant to the Preventive Medicine subproject development plan within the framework of the HealthNet roadmap posted at the Russian Government website, a chain of at least 3,500 preventive medicine centers will be created in Russia by 2035. Preventive herbal medicinal products together with dietary supplements take far from the last place in this plan providing for a revival of the medicinal plant industry and production of personalized herbal remedies in Russia.
[PharmVestnik # 05, 14/02/2017, p. 14]
Russians just about ready to give preference to local drugs
When selecting drugs, the Russians pay attention to their medical properties and healthcare professionals recommendations. But the price factor is even more important for most Russians. Local drugs might become an alternative to high-cost imported products. More than 90% of the respondents surveyed by research company Romir expressed their readiness to purchase local similars if a reliable information on their comparable curative properties is available. More than 80% of the Russians have already found substitutes for imported drugs, and most respondents are satisfied with the similar drug quality.
[PharmVestnik # 05, 14/02/2017, p. 17]
Out-of-pocket sector report, 2016
Throughout the past year, the main question was whether the Russian out-of-pocket sector was to post growth. Now is it clear that the answer is “yes” both in value and real terms.
[PharmVestnik # 05, 14/02/2017, pp. 18-19]
Rating of Russian pharmacy chains, 2016
There are very few people who like changes and hardships; however, the latter helps mobilize efforts, get rid of excessive things, and adjust to the new situation. The economic problems common for all Russian industries in 2016 served to mobilize pharma as well. Less successful pharmacy chains have either ceased existing or have been acquired by better managed market players. Some have been increasing an average purchase amount and cutting unprofitable pharmacy outlets, while others favored extensive development strategies setting up many new pharmacies. The situation is nearing stabilization, which makes it possible to assume that the status quo as at the end of 2016 will persist until the next shakeup.
[PharmVestnik # 05, 14/02/2017, pp. 22-24]
Cancer patient register being improved in St. Petersburg
Many link the cancer patients drug coverage problems to the registers that provide the information required with a delay. This results in a gap between the funds earmarked and demanded. PharmVestnik learnt why cancer registers are really needed from Anton BARCHUK, Chief Operating Director of the Northwestern Federal District Oncologist Association, Research Associate of N.N. Petrov Cancer Research of the Russian MoH, and Research Associate of Tampere University.
[PharmVestnik # 05, 14/02/2017, p. 28]
Pharmasintez to become one of the few Russian manufacturers with in-house API production base
Launching a new facility in Bratsk will make it possible for Pharmasintez OJSC to transfer to the raw materials of its own. When the facility starts operating at full capacity, the company is to meet 100% of the API demand. Such model is currently being used by several biotech manufacturers and by just a few chemical synthesis companies.
[PharmVestnik # 05, 14/02/2017, p. 29]
