TIMOPHEI NIZHEGORODTSEV: PLAYERS ON THE PHARMACEUTICAL MARKET SHOULD NOT FEAR ADMINISTATIVE PRESSURE

FAS will continue countering cartels, increase availability of medicine and improve transparency of public procurement

Head of FAS Department for Control over Social Sphere and Trade, Timophei Nizhegorodtsev discussed the main priorities of the antimonopoly body with regard to the pharmaceutical sector at Russian Pharmaceutical Forum organized by Adam Smith Institute on 15 May 2018.

He pointed out that the first three parts of the Presidential Order of 21 December 2017 on developing competition in Russia concern the medical sector: developing competition on the markets of medicine, medical products and medical services.

“Together with the Ministry of Health Care we devised documents on drug substitutability. Today we are developing an informational-analytical system which will allow analyze procurement of analogue drugs across Russia. It will further decrease possibility to manipulate data and overrate prices. We face strong opposition from pharmaceutical companies because it is serious work that touches income of giant corporations”, said Timophei Nizhegorodtsev.

International experts praised FAS efforts. For example, the World Bank considers FAS substitutability practice the best competition advocacy case on the medicinal drug market.

“Our work does not imply administrative pressure”, explained Head of FAS Department for Control over Social Sphere and Trade. “FAS efforts are built up on economic analysis – comparing manufacturer’s own prices in the reference countries, for example, in Eastern Europe, with prices at which the manufacturer sells the same medicines in Russia. All prices were reduced by pharmaceutical companies voluntarily. Companies did not leave the market.  They registered new prices and the medicine will continue circulating in Russia”.

According to Timophei Nizhegorodtsev, the record was reducing medicine price by 11.5 times.

FAS intends to continue eliminating discrimination of Russian manufacturers and leveling their possibilities for investments with foreign companies.