Imported drugs becomes less
The assortment of imported drugs in the segment of vital and essential drugs (VED) cost up to 50 rubles decreased by 8-9%, said in an interview with TV Minister of health Veronika Skvortsova. “With this situation we now understand and believe that it is necessary here to take certain measures,” she said. The representative of the Ministry confirmed that in 2015 decreased representation of essential drugs imported drugs cost up to 50 rubles in retail in Russia, without specifying absolute numbers.
However, he noted that all these drugs have analogues produced in Russia or in the countries of the EEC, “in similar or neighbouring categories”. From retail disappeared individual imported drugs cost up to 50 rubles, confirms Executive Director of the Russian Association of pharmacy chains Nelli Ignatieva. “They can be replaced with more expensive drugs, but purchasing power falls, so that in these circumstances, for many people, especially the poor, the disappearance of cheap drugs can be critical,” she says.
According to research firm RNC Pharma, in General, the import of essential drugs in Russia in 2015 decreased by 1.7% in the money, to 462,7 billion rubles and by 8.9% in units, up to 1.9 billion pieces. Most noticeable in packages in 2015 has reduced the imports of drugs categories of essential drugs worth up to 50 rubles: the drop in this category in packs in 2015 compared with the previous increased by 22.6% to 437,3 million, and the money — 23.5%, to 13.3 billion rubles.
Vital and essential drugs (VED) — this is a list of medicines whose prices are regulated by the government so as to ensure their availability to the population. In the list for 2016 — 646 international nonproprietary names (INN). This corresponds to about 23.5 thousand trading dosage forms, explained in an interview with TV Veronika Skvortsova. According to DSM Group, the sales of drugs from the list of essential drugs on the retail commercial market in Russia amounted in 2015 244,6 billion rubles, which is about a third of the market.
Due to the devaluation of the ruble international producers became unprofitable to import some drugs from the essential drugs list, in particular this applies to cheap drugs, says the Deputy General Director of Stada CIS Ivan Glushkov. “Cheap drugs the margin is lower than that of expensive, so if the growth of the dollar made it unprofitable to sell cheap drugs,” he says.
Under current law manufacturers have the opportunity to re-register price for ED once a year taking into account inflation. However, until October 1, 2015 for non-existent technology, so the cost to re-register once a year could only domestic companies. “Last year we issued a government decision introducing a new method of registration of prices for drugs included in the list vital, explained in an interview with TV Skvortsova. And first introduced indexation (an annual update of the prices of imported drugs), which previously was allowed only for domestic drugs. <…> We hope that all foreign producers simply re-register the price according to the new rules”.
According to the statistics of analytical company DSM Group, the prices of medicines by the end of 2015 grew by 10.3%, and inflation in the segment of essential drugs amounted to only 2.8%. In January Skvortsova said that the prices of essential drugs increased by 8.8% in 2015.
The possibility of indexing for inflation will not solve the problem completely, says the Glushkov: “the Price will be indexed to inflation now, but no one can predict what will happen to the ruble in the next few months.” “The official level of inflation is not consistent with the level of devaluation of the ruble,” says him Executive Director of the NP “pharmacy Guild” Elena Nevolina.
The reform of Russian medicine
Guest program: Veronika Skvortsova, Minister of health of Russia
What will happen to the drugs
International pharmaceutical manufacturer Stada CIS (produces “Levomekol”, “Vitaprost” and other drugs) refused to import parts of drugs from the essential drugs list in Russia, said Glushkov. “We have to make the decision to refuse or restrict supply of medicines, the cost of production outside of Russia is equal to or higher than the registered maximum ex-works prices,” he explains. Glushkov did not specify on what the drugs and volumes of the supplies in question, but noted that the preparations of the lower and middle price segment. “The majority of imported drugs registered with the marginal output price to 150-200 rbl., unprofitable or are on the verge of unprofitability,” said he.
CEO of Pfizer in Russia Danil Blinov agree that the current economic situation has a negative impact on the pharmaceutical industry of Russia. However, he noted that, despite this, Pfizer is continuing to supply its products to Russia. A number of major international manufacturers, particularly Novartis, Sanofi, Abbott, also answered the queries that had shortened supply of essential drugs.
With the problem of unprofitability of production of drugs due to the devaluation of the ruble was faced not only foreign but also domestic producers. So, in July of last year General Director of JSC “Biosynthesis” Dmitry Boldov wrote to the head of the Federal service for supervision in the sphere of health Michael Murashko a letter in which he said that the company has suspended production of the 39 drugs from the list of essential drugs, because they became unprofitable to produce. “This situation occurred in the company in connection with the economic events in the country — a sharp rise in foreign currency exchange rates, increasing rates of inflation, — it is spoken in the letter (copy is available). — For the production of tablets is procured substance of foreign production in foreign currencies. Therefore, the costs of substance in the cost of drugs has increased compared with the first half of 2014 doubled, while the price of registration was extended to June 2015 12.2%”. Thus, the costs of substance exceeded the marginal price of drugs, in connection with which the company is not able to resume their production, Boldov concludes in the letter. The representative of JSC “Biosynthesis” in February said that since sending the letter, the production of these drugs has not been renewed.
While only certain manufacturers refuse to manufacture or import EDL and now the shortage of medicines in pharmacies no, Nevolin said. But if manufacturers continue will not be able to index prices by more than the inflation rate, very soon the consumer will notice the disappearance of a number of pharmacies cheap medicines, warns Nelly Ignatieva from the Russian Association of pharmacy chains. “To operate at a loss, the producers will not, then they will just abandon the production of disadvantageous drugs,” she explains.
Not the only problem
Foreign producers of essential drugs was faced not only with the problem of the devaluation of the ruble. At the end of January this year, the Association of international pharmaceutical manufacturers (AIPM) was sent to the government of the Russian Federation the letter in which warned the country about the possible disappearance of drugs from the essential drugs list (a copy of the letter).
AIPM argue that because of disagreements between the health Ministry and the Federal Antimonopoly service (FAS) pharmaceutical companies can’t make changes to the register of maximum sale prices on vital and essential drugs. But if the change of any drug is not included in the register, pharmaceutical companies can not sell it, explained by the producers. According to joined 1 October 2015 to force the government resolution the Ministry of health should make changes to the registry without re-negotiating price with the FAS. However, the Ministry of health continues to guide the claims of manufacturers to the FAS, which, in turn, refuses to coordinate applications.