Appeal Court supported FAS position on a refusal to register price for “Prostenongel” medicinal drug
The company intended to register the drug price in breach of the current law standards preventing unreasonable growth of prices for medicinal drugs.
On 7 December 2016, the 9th Arbitration Appeal Court pronounced legitimacy of FAS refusal to agree upon the ceiling ex-work price of “Pharmsynthez” PJSC for “Prostenongel” medicinal drug manufactured by “Kevelt” (Estonia).
“Pharmsynthez” PJSC intended to register the drug price nearly three times higher than the price for the same drug earlier removed from the Register [1]. The price registration application was filed only four months after the old price was removed from the Register.
“From 1 October 2015 it is prohibited to increase price for a medicinal drug, earlier removed from the Price Register, within three years after the removal date. The refusal of the Antimonopoly Service to agree upon the excessive price formed the grounds for the Ministry of Health Care of the Russian Federation to officially register the ceiling ex-works price for “Prostenongel””, pointed out Deputy Head of FAS Department for Control over Social Sphere and Trade, Natalia Sharavskaya.
The Appeal Court upheld the ruling of Moscow Arbitration Court and pronounced legitimacy of the decision made by the Federal Antimonopoly Service and the Ministry of Health Care, and dismissed the claim in full.
1. Price Register: state register of the ceiling ex-works manufacturer prices for medicinal drugs included in the list of vital and essential drugs.