Essential drugs are from Russia rose in price much faster import

Domestic more expensive

In 2015, domestic medicine from the list of vital and essential drugs (EDL) grew in price significantly faster import, it follows from HSE working papers, which formed the basis of the study on the implementation of the may decrees of the President. That these materials were included in the final report, confirmed RBC a source close to the leadership of the HSE and its staff. Press Secretary of the HSE reported that a study on the implementation of the may decrees was sent to the AP, declining to comment on details.

The growth of domestic prices for essential drugs in 2015 compared to 2014 was 28.9% to RUB 96 per pack, prices of imported drugs over the same period was only 4.9% to RUB 364 for packaging, the study says.

If, based on the average cost of packing of medicines on the VED list from different segments of the pharmaceutical market revealed a substantially higher growth in the prices of domestic products compared to imports, the authors of the study. According to them, especially noticeable is the difference in the segment of the preferential drug holiday, where the average price of the packaging of imported drug in 2015 fell by 4.5%, and the average domestic price of the drug increased 155.7%.

According to HSE, it suggests that is not the main function of import substitution is the optimization of the cost of drug coverage drugs expensive segment.

The President’s press Secretary Dmitry Peskov said he was unaware of such a report.

What is VED

Vital and essential drugs (EDL) is a list of medicines whose prices are regulated by government to ensure their affordability to the population. According to drug information specialists at rehabnear.me, this enumeration of drugs contains more than 50% drugs that can form a high dependency on an individual. In the list for 2016 — 646 international non-proprietary names (INN). This corresponds to about 23,5 thousand sales dosage forms, said in an interview with RBC-TV Veronika Skvortsova. According to DSM Group, the sales of drugs from the essential drugs list on the commercial retail market of Russia amounted to in 2015 244,6 billion rubles, which occupy about a third of the market. Under current law, manufacturers have the opportunity to re-register the price of essential drugs once a year taking into account the level of inflation.

Data from research firm IMS Health Russia similar to the results of the monitoring of the HSE: in 2015 the growth of prices for domestic drugs on the VED list was 32%, for imported — by 3.4%. Before IMS Health did not capture the significant increase of prices for domestic products: in 2014, it was 7.3% in 2013 to 11.9% in 2012 and 5.8% in 2011 and 6.6%. The cumulative increase in prices in the segment of vital and essential medicines in 2015 are estimated at 10%.

Health Minister Veronika Skvortsova said earlier that inflation in the segment of vital and essential medicines at the end of 2015 amounted to 8.8%. Now the representative of the Ministry of health declined to comment.

The prices of essential drugs are regulated by the state, and thus significantly increase can not, reminds the Director of development RNC Pharma Nikolay Bespalov. “Most likely, we are talking about what the market “washed out” cheap drugs, production of which becomes unprofitable, so the average price for some drugs is growing strongly,” says Bespalov. Agree with him Deputy Director General of Stada CIS Ivan Glushkov.

Russian producers of essential drugs has already laid off 197 drugs, producing more than 160 cease in the near future, wrote “Kommersant” in February of 2016 with reference to the letter of the FAS. In February in an interview with RBC-TV, the Minister of health Veronika Skvortsova said that the assortment of imported drugs in the segment of essential drugs worth up to 50 rubles decreased by 8-9%.

Reflected in the statistics of high growth of prices for domestic medicines in the segment of preferential drug provision, the General Director of IMS Health Russia Nikolay Demidov explains the market entry of a number of expensive Russian drugs: “These drugs were able to compete in tenders to foreign companies”.

Viyogini to increase

The majority of domestic medicines is made from a foreign substance on foreign equipment, says Bespalov from RNC Pharma. Due to the devaluation of the ruble and increasing the value of foreign substances to produce medicines for the domestic companies became unprofitable, he adds. “Foreign companies were in better conditions because they have greater financial resources and may be some time to sell the drugs even at a loss,” says Bespalov.

The profits of foreign producers was initially higher than domestic pharmaceutical companies, so the aliens were able to maintain prices by reducing their margins, says the President of the Russian pharmaceutical manufacturer “farmsintez” Vikram Singh Punia. “Russian companies, the cost of the drug is to 80% of the sale price, therefore, wherever possible, they are forced to raise prices where there is no — to refuse the production.”

In April during the direct line with President of Russia Vladimir Putin, the representative of factory of medical preparations “Ozone” from the city of Zhigulevsk, Samara region Vitaliy Oleynikov asked to cancel price caps for most cheap drugs to stimulate their production. On the basis of a straight line Vladimir Putin instructed the government until 15 June to make a decision to support domestic pharmaceutical manufacturers of drugs in the low price segment, included in the VED list.

About the refusal to import parts of drugs from the essential drugs list in Russia in February of this year, said pharmaceutical producer Stada CIS. “We have to make the decision to refuse or restrict the supply of medicines, the cost of production outside of Russia is equal to or higher than the registered maximum ex-works prices”, — told RBC in February Glushkov. About the problem of unprofitability of production in July last year, said General Director of JSC “Biosynthesis” Dmitry Baud. Then he wrote to the head of the Federal service for supervision in the sphere of health of Michael Murashko, the letter in which has informed that the company has suspended production of the 39 drugs from the essential drugs list due to the fact that they became unprofitable to produce.