Public discussions hosted by the Ministry of Industry and Trade on the implementation of the three-step system of state procurements took place on November 29. The Ministry proposed amendments to Government’s order №1289 which defines priorities for companies that have a full cycle (including substance production) in Russia and apply to participation in state trades.

    ARPM welcomes the Ministry initiative to support the domestic companies that have a full cycle production in Russia. This initiative not only brings the industry closer to the goals of the state program PHARMA 2020 but also makes it more attractive for investors.

    However, according to the Association, the proposals require being evaluated more. The tree-step preference system does not include interests of companies that produce substances in Russia; also it does not define cases when both a foreign and domestically produced substances are used in a medicines production. The system should be less general and work based on particular interested in producers. For example, production of a large volume of a substance, particularly for a medicine from a low price segment is not always economically rational. Based on the current model, all medicines under 50 rubles and those that are included in the ZNVLP list are at risk of losing their preferential benefits, which will in return put a significant additional expense on the healthcare system at all levels. The right and the mutually beneficial decision are only possible if a dialogue between the industry parties takes place. The interest of the patients should be primary.