Imperfect legislation hinders relationships between insurers and drug carriers
[PharmVestnik # 16, 16/05/2017, p. 1, cont’d p. 4]
FAS sure of its right to determine drug interchangeability
The Federal Antimonopoly Service (FAS) has pursued its practice of determining drug interchangeability since 2010, four years prior to the interchangeability concept emergence in the Federal Law No. 61 “On drug circulation”. About 20 clarification on the issue were published over the past 6 years. FAS’ comments imply that the agency intends to continue this practice.
[PharmVestnik # 16, 16/05/2017, p. 2]
State guarantees
A bill warranting state demand for medical devices to be drafted prior to July 15
Premier Dmitry Medvedev calls the process of medical manufacturing localization in Russia a “sensitive issue” from the economic perspective, and a “puzzle” from human perspective. According to him, this “sensitiveness” is the reason for the delays in signing specific regulations aimed to support local manufacturers. Nonetheless, medical manufacturers have a number of financial tools that allow them to feel the state assistance. At a recent meeting focusing on medical manufacturing localization, Dmitry Medvedev entrusted the relevant agencies with additional directives.
[PharmVestnik # 16, 16/05/2017, p. 6]
Corporate revenues of local players go down, while sales go up
According to Rosstat, in 2016, balanced financial results (profits minus losses) of the manufacturing sector increased by 61.5%; in the chemical production sector, including pharma, the growth was 48.3%. The results were less prominent in the wholesale, and retail segments: 18.6 and 3.3%, respectively. Pharma companies operate in line with the general trend, most of them (but not all of them) posting profits.
[PharmVestnik # 16, 16/05/2017, p. 6]
One in three pharma companies violates laws
The Russian Federal Service for Surveillance in Healthcare and Social Development summed up its law enforcement practices as of Q117 – for the first time as a public discussion. A major finding of the reporting period is that the number of violations in the drug circulation area has not been decreasing, and has remained stably high. A significant role in this situation belongs to the quality sampling system that provides for a closer monitoring of high-tech products and drugs in respect of which claims have been filed before.
[PharmVestnik # 16, 16/05/2017, p. 8]
Government preferences have split pharma industry into “friends” and “foes”
On the eve of May 1st, Head of Delovaya Rossiya (Business Russia) association and R-Pharm Chairman of the Board Alexey Repik virtually “killed” the pharma community by stating that pharma companies were not in need either of continuous state support in respect of import substitution or unjustified preferences any longer. “It makes sense that the president specified that it was time to shift focus from support measures offered to local manufacturers in an indiscriminate way in respect of import substitution, and depart from overprotection and unjustified preferences to the competitive environment. We are “grown up” enough to make our priority an attempt at being number one in specific segments, not just catching up with the world manufacturers”, Mr. Repik was quoted as commenting (when interviewed by TASS) President Putin’s words about state support of import substitution projects said at the government board meeting on April 26. PharmVestnik intended to find out whether many of pharma market players shared this viewpoint.
[PharmVestnik # 16, 16/05/2017, p. 12]
Rating of Russian pharmacy chains, Q117
As of Q117, there were 60,422 pharmacies in Russia, their total turnover amounting to 281.56 bn RUB. In the pharmacy sector, both consolidation processes, and the growth of the key players’ market share continue. Pharmacy turnovers, and average purchase amount have been going up as well. The most vivid changes are underway in the formal pharmacy status change.
[PharmVestnik # 16, 16/05/2017, pp. 14-16]
A Pharma-2010 grant facilitates new painkiller development
Tomsk scientists have synthesized a new analgesic molecule, and are ready to start preclinical studies. The developers believe that the new drug will not build up a tolerance. The Russian Ministry of Education and Science experts and clinicians emphasize that there is a high demand for such drugs, but the prospects of marketing this new painkiller are vague so far.
[PharmVestnik # 16, 16/05/2017, p. 18]
