// Regulatory & Legal
State Duma meets foreign pharmaceutical manufacturers
On 27 October, the Subcommittee for Drug Circulation, Pharmaceutical and Medical Industry Development of the State Duma’s Committee for Public Health held a meeting with foreign pharmaceutical manufacturers to get their opinions on the Russian pharma market overall, and regulatory issues. The atmosphere provided for sharing viewpoints openly.
[PharmVestnik # 36, 07/11/2017, p. 1, cont’d p. 2]
// Regulatory & Legal
Pharma sees a growing number of intellectual property protection litigations
The latest legislative changes and intellectual property protection initiatives caused a new wave of disputes on feasibility of implementing a mandatory licensing mechanism in the Russian pharma industry. This topic was raised at the recent RBC Pharma Forum that summed up preliminary results of 2017, and set major development vectors for 2018.
[PharmVestnik # 36, 07/11/2017, p. 4]
// Regulatory & Legal
Drug advertising recommendations to be presented soon
Apparently, it was the Federal Antimonopoly Service (FAS) that was a major troublemaker for pharma companies in 2017. One of the agency’s departments put a lot of efforts in studying the registered VED prices and comparing them with prices for the same drugs in the reference countries. As a result, the hot topic of a new pricing procedure was brought up. Other departments were not sitting idle either, one exposing cartels in state drug procurement, another going deeply into drug advertising. Whereas pricing and behavior during state biddings are rather the bidders’ internal matters, common issues have transpired in advertising, which united pharma companies and advertising experts.
[PharmVestnik # 36, 07/11/2017, p. 6]
// Pharma Retailing
It is time for pharma companies to market drugs via online pharmacies
Advertising experts assert that pharma companies are slow to adopt the Internet as a communication channel. To date, pharma is one of the most conservative customers of web aggregators. Meantime, there are at least two reasons why companies must hurry going online. The first is online drug sales legalization, the second is demographics as the active web-surfing generation is coming of age and emerges as heavy buyers. At the same time, the final word rests with legislators.
[PharmVestnik # 36, 07/11/2017, p. 9]
// Health IT
A regular RAPM meeting discussed digitization of pharma reps
Digital communications have organically penetrated nearly all daily life spheres. Businesses should be quick to adopt advanced technologies not only to stay afloat but be earning more and faster. On 26 October, pharma market experts used a regular meeting of the Russian Association of Pharmaceutical Marketing (RAPM) as a venue for discussing how digital technologies could transform the entire pharmaceutical representative institution.
[PharmVestnik # 36, 07/11/2017, pp. 10-11]
// Health IT
So far, pharmacy chains do not see promising IT solutions coming from pharmacy associations
Pharma retailers are all in favor of software implementation to boost business process efficiency, but they differ in implementation practices. Top managers of eApteka online pharmacy chain are sure that it is impossible to attract pharmacy chains leaning solely on pharmacy associations’ proprietary software, especially given that associations cannot offer competitive IT solutions for pharmacy chains so far. eApteka has been updating and improving its proprietary software for several years. In turn, the management of Intec pharmacy association believes that it does not make sense if retailers develop software on their own. They’d better delegate this task to the association that will teach pharmacies to earn more, and will optimize all business processes.
[PharmVestnik # 36, 07/11/2017, p. 14]
// Insight
Enterosorbent segment report as of August 2017
According to AlphaRM, in 2017, the enterosorbent sales growth was positive and rather sustainable. An overwhelming majority of enterosorbents are sold at pharmacies and paid for out of pocket. Less than 2% of the group in value terms go through state biddings.
[PharmVestnik # 36, 07/11/2017, pp. 16-17]
// Insight
Pharmacy sector report, Q317
Based on QuintilesIMS data, we have already observed a switch from positive long-term growth dynamics (over 12 months) to negative dynamics in the short term (1 month) when reporting H117 results (PharmVestnik # 25, 15/08/2017). It seems that this trend has fully evolved in Q317. Even September sales do not provide for optimism despite a seasonal cough and cold onset.
[PharmVestnik # 36, 07/11/2017, pp. 18-19]
// Exports
Russian pharma industry set for exports
According to Active Component President Alexander Semyonov, Russia’s pharma industry has already got the most of the import substitution program, and its further development is associated with building up its export potential. He believes that not only finished drugs but also APIs must be exported. This opinion was supported by the participants of the session “St. Petersburg pharmaceutics: export and innovation opportunities” held within the framework of the annual investment forum.
[PharmVestnik # 36, 07/11/2017, p. 21]
// Pharma Manufacturing
A cosmeceutical mini-cluster set up within Pharmaceutics Industrial Park
Stavropol territorial authorities still pursue their pharma cluster development plans. They believe that the cluster exists de facto, and only needs to be documented de jure. While Escom, the regional pharma giant that was to become the industrial park “anchor”, is seeking to solve its financial problems, the Ministry of Economic Development invests in a cosmeceutical mini-cluster.
[PharmVestnik # 36, 07/11/2017, p. 21]
// Monitoring – EAEU
Kazakhstan continues health insurance discussion
Pursuant to the law of the Republic of Kazakhstan “On Mandatory Health Insurance”, since 1 July 2017, allocations have been made by employers and self-employed entrepreneurs to the Social Health Insurance Fund. Starting from 1 January 2018, both the government and economically inactive population will be making their contributions, too. Despite the wide awareness campaign conducted by Kazakhstan Ministry of Health, a discussion on health insurance feasibility is still underway in the country. Pakhim OSHAKBAYEV, Director of Talap Applied Research Center and one of the insurance implementation delay supporters, shared his viewpoint and arguments with PharmVestnik.
[PharmVestnik # 36, 07/11/2017, p. 22]
// Monitoring – EAEU
Belarus eliminates agency imposing government control on pharma
It is important for pharmaceutical manufacturers to understand what agency is responsible for pursuing the government policy on a specific market. The recent changes in Belarus regulatory sphere are important both for local and foreign manufacturers targeting the country’s market.
[PharmVestnik # 36, 07/11/2017, p. 22]
// Regulatory & Legal
Geropharm estimates drug marking cost at 10M RUB
Within the drug marking program, pharmaceutical manufacturers, on the one hand, shoulder the costs associated with re-equipping production lines, while, on the other hand, enjoying the dividends in the form of their product protection against counterfeiting as well as the opportunity of tracking the product supply chain. But anyway, analysis of initial costs as well as cost-cutting opportunities is of primary importance. Geropharm shares experience of participating in the pilot drug marking project.
[PharmVestnik # 36, 07/11/2017, p. 25]
// Medical Manufacturing
Federal Service for Surveillance in Healthcare and Social Development records growing medical manufacturer activity
Local medical manufacturers increasingly often speak about setting up JVs with foreign partners in Russia. However, in exchange for investments into manufacturing facilities development, foreign investors require from their local partners clear guarantees of forecast demand, special preferences, and export opportunities for locally manufactured products. Under the circumstances, local players play liaisons between their foreign colleagues coaxed into investing and Russian regulators of whom transparent game rules are expected.
[PharmVestnik # 36, 07/11/2017, p. 26]
// Health Management
The 5thLeksell Gamma Knife launched in Russia
At A.M. Granov Russian Research Center for Radiology and Surgery Technologies near St. Petersburg, a Gamma Knife Perfection unit was launched for stereotactic radiotherapy, primarily of brain tumor patients. Health Minister Veronica Skvortsova and Deputy Health Minister Tatiana Yakovleva took part in the launch ceremony. This gamma knife unit is the second in the Northwestern region and the fifth in Russia overall.
[PharmVestnik # 36, 07/11/2017, p. 27]
// Regulatory & Legal
Medical manufacturers complained about inconsistencies in the law
On 1 November, experts and company heads taking part in the roundtable on medical manufacturing issues within the framework of the National Medical Chamber Congress defined major sore points of expanding the local medical device market. Apart from quality gap, regulatory barriers impeding medical device exports were brought up.
[PharmVestnik # 36, 07/11/2017, p. 27]
