FAS PROPOSES MEASURES TO SUPPORT MEDICINES THAT COSTS UP TO 100 RUB

A systemic approach proposed by the antimonopoly body will reduce the risk of vital and essential medicines in the low-end segment exiting the market. It will make them available for the population

The Federal Antimonopoly Service submitted its proposals to the Government of the Russian Federation to support medicinal medicines that cost less than 100 RUB and are on the list of vital and essential medicines.

Several Russian pharmaceutical manufacturers have already raised their voices that manufacturing medicines from the low-end segment is unprofitable.

“In fact, the unprofitability issue of manufacturing medicines from the low-end segment is long overdue and it is systemic. It relates directly to registering prices on the low economic base in 2010, changes in the Ruble exchange rate in 2014 and the system-wide non-application of the annual indexations to the inflation level by market players”, explains Head of FAS Department for Control over Social Sphere and Trade, Timophei Nizhegorodtsev. “Our main task now is to minimize the risk of medicine shortage”.

In this context, the antimonopoly authority finds it expedient to make amendments to the Rules for re-registering the maximum ex-works prices for vital and essential medicinal medicines in the part of clarifying the rules for re-registering prices on the medicines in the low-end segment. For example, FAS proposes to introduce mandatory re-registering of prices for generics on the basis of indicative parameters, as well as allow possible indexation for some generics.

At the same time, FAS believes that the current fluctuations of currency exchange rates should not affect the costs of vital and essential medicines so far. They will be supported, in particular, by the measures undertaken by the Government of the Russian Federation that have built up some safety margin.

Timophei Nizhegorodtsev argues that “considering reduction of customs rates from 2014 and annual indexation in the past two years, the safety margin just for foreign-made medicines in the current year has been 17.30 %. At the same time, the average euro to Ruble exchange rate in 2020 has increased by no more than 1.2% compared to the average price review rates in 2018, and reached 75.01 RUB”.