Ironically, Sberbank, Russia’s # 1 innovative bank, would frequently resort to red-tapery if low-interest loans for innovative projects are requested. Promomed that has launched a full-cycle production of “reserve” antibiotics has been successful in synthesizing a novel API but has failed to “synthesize” a Sberbank-funded project. Even though this project had got under the control of President of Russia, and the Industry Development Fund approved the loan of 300M RUB at a 5% interest rate, the bank maintained impossible claims for a letter of guarantee. Formerly, the API manufacturer Active Component has found itself in a similar situation.
[PharmVestnik # 08, 06/03/2018, p. 1, cont’d p. 4]
// Pricing – Pharma
Pharma pricing reform delayed
The new pricing procedure for VED-listed pharmaceutical products kept the Russian pharma business on the alert throughout the 2nd half of 2017. Pharma companies were apprehensive not so much of new pricing techniques as of being compelled to reregister all drug prices overall. Now the reform has been postponed indefinitely.
[PharmVestnik # 08, 06/03/2018, p. 2]
// Health Funding
Financial experts approved health expenditure growth
The report ‘Healthcare: Indispensable Responses to Challenges of the Times’ has not sparked any public outcry despite the media headlines covering the allegedly proposed fee-for-service medicine health services. This report was prepared with assistance of the National Research University Higher School of Economics, was presented to President Vladimir Putin back in May 2017, and has been since improved with assistance of Presidential Administration of the Russian Federation. The public got acquainted with a presentation of this document a full version of which has not been published yet in late February 2018. Meantime, it is quite possible that the pharma industry will live in accordance with the scenario outlined in the report for the next few years. At the instruction of President of Russia, the Center for Strategic Research developed a Russia development strategy for 2018—2024 that included a healthcare block. It cannot be ruled out that Vladimir Putin running for presidency will propose this very program to his voters.
[PharmVestnik # 08, 06/03/2018, p. 3]
// Monitoring – EAEU
Kazakhstan accepted the first marketing applications to be executed in accordance with EAEU regulations
Kazakhstan’s regulatory authority was proud to declare that the republic would be the first EAEU member state to issue marketing authorizations in accordance with the common market regulations. Certain market players make no secret of the fact that their attempts to choose Russia as a reference state have failed. Now businesses intend to have another try in Kazakhstan.
[PharmVestnik # 08, 06/03/2018, p. 5]
// Digital Health
Experts discuss barriers to digital health development in Russia
What prevents the telehealth law from being effective? Is this law required just to show telehealth its place? Experts discussed healthcare digitalization limits within the framework of the forum ‘Miracles of the Russian Healthcare’ held on 22 February in Moscow.
[PharmVestnik # 08, 06/03/2018, p. 10]
// Health Management
Less than 50% state-of-the-art cancer drugs are available in Russia
It is hard to believe, but in the times when smoking was not widespread lung cancer was considered a rare disease that caused just occasional deaths. Presently, lung cancer ranks first as the cause of death among all cancer types: as tobacco addiction develops, smoking-related morbidity and mortality increased 80-100-fold.
[PharmVestnik # 08, 06/03/2018, p. 10]
// Regulatory & Legal – Pharma & Medical
Nativa continues trying originators’ patience
It might appear that a company cannot have ever-lasting energy. However, Nativa does not only manage to get authorizations for still patent-protected generics but also holds on in court against originator companies. The Commercial Case File website has information about eight international pharmaceutical manufacturers that filed legal claims against the Russian company.
[PharmVestnik # 08, 06/03/2018, p. 11]
// Hands-on Experience
Artur Urazmanov never looks back
Ex-owner of Kazan pharmacy chain 36.6 Artur URAZMANOV never looks back to his businesses sold. He believes that the sale of the pharmacy chain was both successful and timely. He advises his regional colleagues to hurry, otherwise lucrative assets may quickly turn into those illiquid. In his status of the owner and CEO of medical centers Zvezda, Mr. Urazmanov openly speaks about the reasons why he got rid of his pharmacy chains and why it pays better to be in medical business now.
[PharmVestnik # 08, 06/03/2018, p. 12]
// Health Investment
Biomedical project failures often relate to poor control
Over the past two years, a trend to growing investment into biomedical startups has emerged. Investors favor AI, but they do not always do due diligence on startup teams. A high rate of failures is also associated with inadequate investment control over startups.
[PharmVestnik # 08, 06/03/2018, p. 15]
// Health Strategies
Russian presidential wannabes on healthcare-to-be
PharmVestnik put the 2018 presidential candidates in the same order in which they would appear on the voting ballots and studied their health policies.
[PharmVestnik # 08, 06/03/2018, p. 17]
// Pharma Retailing
Experts consider pharmacy market over-heated
Struggling for higher margins, pharmacy chains make their way to leadership while distributors lose ground. Certain experts believe that resale schemes and the growing rate of direct contracts kill classical distribution. Tension on the pharma market builds up, and distributors are giving up settling for logistic operations. There is an opposite opinion among experts, too: some of them believe that in 2 years the market with an effective marking system will change, and everything will click into place. This issue, among other things, was on the agenda of the 10th Pharmacy Summit.
[PharmVestnik # 08, 06/03/2018, p. 18]
// Health IT
Doctors are offered AI to assign drugs
The fast-growing digital medicine startups offer not only remote operations but also assistance in drug assignment using artificial intelligence (AI). The developers believe that a self-teaching system will provide for improved quality of services as well as for cutting the patient visit time. Medical professionals are puzzled: If a doctor cannot cope with drug choice and appeals to a self-teaching machine, what size of a cemetery lot is such doctor ready to be responsible for?
[PharmVestnik # 08, 06/03/2018, p. 19]
// Insight – Pharmacies
Rating of Russian pharmacy chains, 2017 (RNC Pharma)
Russian pharmaceutical retailers are entering the times of landmark events. Until recently, most of changes occurring in the sector were to a certain extent predictable and were caused either by the effects of the crisis or disorders hitting individual market players. However, the crisis is over, and other factors come to the fore this year, such as market stagnation, the growing interest from the Big Retail, and upcoming online trading in pharmaceuticals. Consolidation is likely to be among the few things available to the sector to withstand these threats.
[PharmVestnik # 08, 06/03/2018, pp. 20-23]
// Insight – Pharmacies
Rating of Russian pharmacy chains and associations, 2017 (IQVIA)
As of 2017, the TOP10 pharmacy chains and associations accounted for 39.23% of the retail market, up by 11% year over year (y-o-y). ASNA still ranks first with a market share of 14.72%. The TOP3 pharmacy chains also include 36.6 (5.28%) and Rigla (4.89%). The total market share of the TOP3 players increased by 7.9% y-o-y.
[PharmVestnik # 08, 06/03/2018, pp. 24-25]
// Bad Practices – Pharma & Medical
Roszdravnadzor found equipment of questionable quality at private clinics
The territorial office of the Federal Service for Surveillance in Healthcare and Social Development (Roszdravnadzor) discovered an ultrasonography machine with a forged marketing authorization, a substandard magnetic resonance imaging machine, and an unregistered NMR imaging apparatus at private medical centers of Rostov Region. Fines under administrative law have been imposed on all these clinics, and the audit materials have been submitted to law-enforcement agencies.
[PharmVestnik # 08, 06/03/2018, p. 26]
// Health Management
Pharmacies often fulfil the functions of outpatient clinics
MedElement platform experts (Kazakhstan) conducted a research and came to the conclusion that the number of pharmacies affects self-treatment. MedElement CEO Vitaly ERMOLENKO shares the research results.
[PharmVestnik # 08, 06/03/2018, p. 26]
