Putin instructed to take control of drug prices

Russian President Vladimir Putin instructed the Federal Antimonopoly service (FAS) to analyze the prices of medicines circulating on the domestic market, and to compare them with prices of similar products in the global market. This was reported on the Kremlin website.

In addition, the Agency is mandated to verify the validity of expenses of the Russian manufacturers of medicinal products subject to world prices for raw materials and components. The order of the President must be made before September 15.

The Ministry of health jointly with the Ministry of industry and trade, Ministry of economic development and FAS, the President instructed to submit proposals on organization of monitoring of drug procurement for state and municipal needs.

In addition, agencies will need to monitor the reasonableness of the price of these drugs and to prepare proposals to reduce the costs of domestic producers of medicines circulating on the Russian market.

Orders were given following the meeting of the President with members of the government, which took place on July 14.

In June, consulting company, RNC Pharma based on data of Rosstat has estimated that sales of Russian-made medicines for the first five months of 2016 has increased by more than 40% compared to the same period last year. Development Director at RNC Pharma Nikolai Bespalov is associated with import substitution, as well as the fact that Russian consumers switched to less expensive domestic drugs due to their lower cost compared to imports.