FAS REQEUSTED KOSTROMA REGIONAL TARIFF BODY TO REVIEW THE MAXIMUM MARK-UPS TO MEDICINAL DRUG PRICES

The antimonopoly authority issued its next injunction to an executive body of a subject of the Russian Federation

The Federal Antimonopoly Service (FAS Russia) exposed discrepancy between the maximum wholesale and retail mark-ups in the Kostroma region adopted by Kostroma Regional Department for Government Regulation of Prices and Tariffs in accord with the approved method *.

FAS exposed the discrepancies in the course of approving the decision of the regional executive body on the maximum wholesale and retail mark-ups to the actual ex-works producer prices for the drugs including in the List of vital and essential drugs.

Deputy Head of FAS Department for Control over Social Sphere and Trade, Neodesha Sharavskaya said: “Kostroma Regional Department for Government Regulation of Prices and Tariffs requested to adjust No. 14/506 Order in line with the law of the Russian Federation. In particular, the regional executive body should reduce the maximum wholesale and retail mark-ups in accord with the estimates specified by the official method, by the end of March 2018”.

*No. 442-а Order of the Federal Tariff Service “On approving the method for federal executive bodies of the subjects of the Russian Federation for setting the maximum manufacturers’ wholesale and retail mark-ups to the actual ex-works prices on the medicines included in the list of vital and essential drugs” of 11 December 2009.

Reference:

FAS participates in the reform, which is overseen by a minister of the Russian Federation, Mikhail Abyzov. The new system of public control will educe administrative burden upon business, increase the performance quality of control-and-supervisory functions and reduce the damage to competition caused by violations of the law.