23rd International Specialized Exhibition PHARMA 2016 took place in Moscow and brought together over 180 leading researchers, manufacturers, and supplier from 17 countries. The Association of the Russian Pharmaceutical Manufacturers held a conference “Domestic pharmaceutical production. Results of 2016 and plans for 2017”. The event was moderated by Deputy Director general of ARPM, Elena Maslovskaya.
The main concern of the market is the upcoming implementation of the system of pharmacy package labeling which begins in 2017. Head of the department of the State quality control of medicines of the Roszdravnadsor, Valentina Kosenko noted that the business will benefit from the system because it will be impossible to reenter the product on the market second time. Also, the State will then be able to prevent entrance of falsified medicines on the market, as well as better control state funds, drug circulation , and stock management. By 2019-2020 all medicines that are circulating in Russia will be labeled.
Mrs. Maslovskaya agreed with the speaker and said that the labeling is beneficial for the State and business. However, the process should not be launch pre-term. Results of the pilot project should be carefully evaluated and only then make the labeling mandatory for all producers. Manufacturers are concerned that the new labeling will bring the production cost up, particularly for the medicines from the low price segment which is already at risk.
According to Surab Shetti, ACG Inspection, the cost of introduction of the labeling technologies to a factory could vary from 70.000 to 250.000 euros depending on the type of packaging line and could take to up to 12-15 months.
Another discussed topic was the issue of price formation and amendments to the ruling so-called “odd man out”.
According to Deputy director of STADA CIS, Ivan Glushkov we should not expect to see freedom at price formation on medicines from the lowest price segment, subsidy to producers and price increase for medicines in the nearest future. The affordability of medicines affects electorate preferences and with the upcoming elections in 2018 the price stability is critical for the Government.
Director on pharmacoeconomics of “R-Pharm”, Alexander Bikov spoke on the proposed by the Ministry of Industry and Trade amendments to order #1289 on the three-step system of preferences depending on the level of production for companies that have allocated their production in Russia. He noted that increase in affordability of medicines due to the decrease of price by manufacturers is only happening within the conditions of a free market competition. However, if participation in public procurement is allowed only for companies that have all production stages in Russia, including synthesis of substances, we need additional measures to save competition on the market. The proposed measures should stimulate the industry and not block its development.