Current issue #6, 2016

Reviving production of cheaper drugs may take long

Vice Premier Arkady Dvorkovich entrusted the government with considering the issue of the state regulation of prices for cheaper VED-listed drugs before April 5, 2016 г. Earlier, Vice Premier Olga Golodets announced that a government plan for solving this problem would be ready by February 12. Market players note that the situation was exactly the same last year, the only difference being that manufacturers started discontinuing production of cheaper drugs. According to the Federal Antimonopoly Service (FAS), more than 190 VED-listed drugs with the price less than 50 RUB have been already discontinued, and 160 more drugs would be taken out of production shortly. Meanwhile, it will take at least 6 months to revive their production. Therefore, even if the government gets going after all and acts rather quickly, the missing drugs will reappear only by the end of the year.

[PharmVestnik # 5, 16/02/2016, p. 1, cont’d p. 3]

FAS to toughen competition in the API segment

In November 2015, the Russian Federal Antimonopoly Service suggested a one-time price hike by 5 RUB in the lowest drug price segment (less than 50 RUB). It was then that the FAS wrote a letter to the Russian government warning that more than 300 drug trademarks might disappear from the market; of them, 197 had been already discontinued. While the price escalation issue is still open, the FAS goes on looking into other ways to help the manufacturers of cheaper drugs. In early February, the agency convened an expert council represented by Pharma market players and remarked that the API market needed to be made more transparent and competitive, which would provide for reducing the finished dosage form costs.

[PharmVestnik # 5, 16/02/2016, p. 2]

Skolkovo Foundation won 2^nd litigation against Pharma Bio Ltd.

On February 15, Moscow Court of Arbitration made a favorable judgment on Skolkovo Foundation’s 23 mn RUB suit against their resident. Pharma Bio Ltd. was charged with inappropriate use of funds. The company’s counter-claim for a 125.5 mn RUB grant for completing the project was rejected. It looks like the parties took a very tough stance in the dispute that has already generated two lawsuits, and they are ready to go all the way.

[PharmVestnik # 5, 16/02/2016, p....