Representatives of foreign competition authorities exchanged information abut the specifics of national regulation of drug prices
"The findings of the survey of world prices for medicines may form the basis for a wider comparison of medicinal drug pricing procedures in different jurisdictions” concluded Deputy Head of FAS Andrey Kashevarov.
Attendees of the 11th session of the Working Group of studying competition on the pharmaceutical markets discussed cases of unfair practices by pharmaceutical companies and data obtained analyzing drug prices.
The 11th session of the Working Group of studying competition on the pharmaceutical markets took place on 21 September 2017 in Veliky Novgorod. The discussion focused on the practice of regulating drug price in different contraries was part of the Competition Week in Russia.
Attendees – representatives of foreign competition authorities exchanged information about the specifics of national regulation of drug prices, discussed cases of unfair practices by pharmaceutical companies and data obtained analyzing drug prices.
Head of the International Department, Italy competition authority, Renato Ferrandi, presented Italy’s experience in analyzing whether drug prices are economically justified, quoting a recent case. General Director, Austria’s Federal Competition Authority, Theodor Tanner outlined the standards and legislative acts regulating pricing for pharmaceuticals. Commissioner, Brazil’s Administrative Council for Economic Defence (CADE), Cristiane Alkmin Junqueira Schmidt shared a similar regulatory practice. Until 2003, due to absence of such regulation, drug prices in Brazil were very overrated.
Head of FAS Department for Control over Social Sphere and Trade, Timophey Nizhegorodtsevpresented experience of Russian antimonopoly body on reducing medicinal drug prices. FAS managed to reduce price on average by 50% for 451 positions based on an international comparative survey of prices for drugs on the list of vital and essential medicines. Timophey Nizhegorodtsev formulated recommendations and proposals on price registration that representatives of foreign competition authorities may find useful in their practical work.
Deputy Commissioner, South African Competition Commission, Hardin Ratshisusu presented the findings of monitoring several cancer drugs. The survey conducted by South African competition authority compared prices for these tumor drugs in Brazil, China, Egypt, France, India, Pakistan, Russia, Thailand, the UK and the US. Hardin Ratshisusu described in detail the drug pricing practice in South Africa and the method for calculating the final price.
Deputy General Director, Anti-Monopoly and Unfair Competition Enforcement Bureau, State Administration for Industry and Commerce, the People’s Republic of China, San Lin outlined the most widespread unfair practices by pharmaceutical companies. He drew attention to the fact that most cases are related to bribing doctors who should sell particular drugs to their patients. Commissioner, the Competition Commission of India, Shri Bunker said that India is also suffering from unfair practice of bribing doctors.
Other speakers included a lawyer, OECD Competition Bureau, Pedro Caro de Sousa, and Head of Control Department, the State Commission for Protection of Economic Competition, the Republic of Armenia, Manuk Mikaelyan. The latter emphasized the main issues of competition associated with parallel import of drugs that considerably affect drug prices.
Deputy Head of FAS Andrey Kashevarov concluded: “Drug pricing is one of the most important and acute issues on the modern global pharmaceutical market. Many countries face overrated drug prices, which puts a serious burden upon the budget of health care institutions and reduce drug availability for the patients. One of the first steps to resolve the situation can become an analysis of world drug prices and the findings can form the basis for a wider comparison of medicinal drug pricing procedures in different jurisdictions”.