Current issue #18, 2017

Local pharmaplayers warn against building “blockbuster burial grounds”

Foreign companies take changesinapproaches to regulating the Russian pharmamarket with reserve and cautious optimism. Instability and unpredictability of the government actions makes head offices mark time in respect of a massive launch of innovative products to this market. Foreigners makeno secret that the Russian pharmamarketis rather attractive; but they are not in a hurry to localize their new drugs in Russia because they do not think it feasible. They also strongly disagree with approac hesinvolving localization “depth”. Local pharmacompanies feel much more reassured, but they are not satisfied with a mere declaration of intent, and wait for specific actions from the regulators. At the same time, certain market players warn that mass construction of generic manufacturing facilities is a developmental dead end for the industry.

[PharmVestnik # 18, 30/05/2017, p. 1, cont’dp. 3]

Experts think development of medical industry impossible without access to foreign markets

Asoftoday, there are no economic development officials left who have not atleastoncespokeninfavor of boosting exports as a key driver of the Russian production development. Inaccordance to the National Economic Security Strategy until 2030, Russian exports should grow at a rate of 7% a year. Experts believe that medical manufacturers fail to snatchat every opportunity provided by the government. Such opportunities were on the agenda of the scientific and practical conference on the foreigne conomicactivities of the Russian medical industry heldon May 19.

[PharmVestnik # 18, 30/05/2017, p. 2]

Regulator soutlined a short-term action plan

The one thingunanimously supported by all Russian pharmamarketplayer sisclearandstablerules of game formed by the current regulatory environment. Such an assertion is likely to be true for all economic sectors. Howevertraditionally, only the lazy would not regulatepharma in Russia. ThelatestregulatorydevelopmentsinvolvetheFederalTreasuryunder the jurisdiction of which the entire government procurement system has come, as well as the Federal Tax Service that has been implementing the drug marking project together with the Federal Service for Surveillance in Healthcare and Social Development. Atthesametime, them ainregulators are still the Ministry of Health, Ministry of Industry and Trade, and Federal Antimonopoly Service. Therefore, it is important to know their objectives for this year.

[PharmVestnik # 18, 30/05/2017, p. 3]

One third of pharmaceutical manufacturers risk getting under drugre-registration because of marking

The introduction of mandatory drugmarking by the end of 2018 still raises serious concerns of pharmaceutical manufacturers. It is not just the tight project implementationschedule. Additional risk sareassociatedwiththepackagedesign changes for controlandidentification marking, which may entail a massive drug re-registration. The details were discussed at the 6^th pharma packaging forum PHARMAPACK that entirely focused on the batching system implementation.

[PharmVestnik # 18, 30/05/2017, p. 8]

New company that intrigued the market

Perhaps, one of major events of the Russian Pharmaceutical Forum organized by Adam Smith Conferences (16-17 May 2017, St. Petersburg) was the announcement on the new company incorporation, i.e. Marathon Pharma. Itispart of MarathonGroup, an investment holding owned by Alexander Vinokurov. Theemergenceofapharmaceuticalsubholdingcompany was announced the day before the forum opening, and the forum itself was the venue of closing a deal on the acquisition of 50% plus one share of Fort. IgorKRYLOVwasappointedPharmaUnitManagingDirector. Mr. Krylov had the kindness to answer a fewPharmVestnik’squestions.

[PharmVestnik # 18, 30/05/2017, p. 10]

Physician shave fearsprescribingnar coticanalgesics

As of 2016, the number of patients inneedofanalgesia was 20,698 in Moscow, and 10,754 inSt. Petersburg. Ofthem, 14,150 patientsreceivedanalgesicsinMoscow, and 2,100 inSt. Petersburg, which is 68 and 20%, respectively. The reason for such incomplete coverage is not the absence of the drugsrequired.

[PharmVestnik # 18, 30/05/2017, p. 17]

Review of intest inaladsorbents (ATCcode A07B) sales in out-of-pocketsector, Q216-Q117

As summerisnearing, it is advisabletotakestock of the medicine chest, and make sure that there are enough efficacious enterosorbents that will come in handy in case of food-born diseases.

[PharmVestnik # 18, 30/05/2017, pp. 18-19]

Without making haste

Cumulativerating of pharmacy chains andassociations, Q117 (QuintilesIMS)

AsofQ117, thecumulativeshareofthe TOP10 pharmacy chains and associations reached 30% of the retail market, up 2% year-on-year (y-o-y). The Association of Independent Pharmacies ASNA still leads the end-to-end rating with a market share of 8.63%. Pharmacy chains still see their prospects in regional expansion. This is supported by the fact that the total number of pharmacies withinthe TOP10 pharmacy chains increased by 45% y-o-y. The highest growth rates in terms of the number of pharmacies were posted by ASNA (+131%),Pharmakopeyka – Tvoy Doctor (+53%), and MelodiyaZdorovya (+49%).

[PharmVestnik # 18, 30/05/2017, pp. 20-22]

Be fast and see

Rating of Russian pharmacychains, Q117 (RNCPharma)

On the one hand, inthe 1^stq 2017, the development of the Russian retailsector was marked by strengthening of the positive trends originating from the previous year. Thedrugdemandhasbeenslowlybutsurelyregaininginvalue; moreover, it is due both to the growing consumption in real terms and switching to more expensive drugs. Ontheotherhand, theexistingpositivedynamicsis, regrettably, nothingmorethananicefactthat, whileimprovingpharmacies’ general well-being, objectively cannot make a solid basis either for quantitative or qualitative growth of the industry. Themaingrowthtoolsthat have been used for the pharma retail development in recent past are currently either overall inefficient or close to the feasibility margin.

[PharmVestnik # 18, 30/05/2017, pp. 23-25]