FAS COMMENTS ON THE STATEMENTS REGARDING ABSENCE OF DRUGS IN CIRCULATION

“Experts” on pharmaceutical markets are making statements in mass media about massive withdrawal of medicines from the Russian market. According to their data, for instance, there are around 700 such drugs, some talk about 900 drugs, and their exit from the market is related to the state regulation of drugs prices.  These statements are contrary to fact.

FAS has studied the situation carefully and requested the relevant data from the Ministry of Healthcare of the Russian Federation. According to the Ministry, in 2018-2019 pharmaceutical manufacturers initiated revocation of registration for 471 drug positions. The overwhelming majority of these drugs have analogues in circulation. At the same time, companies registered 662 medicines only in 2018. Pharmaceutical companies that decided to withdraw their products from the market most frequently mention manufacturing difficulties, modernization of processes and equipment, reviewing product portfolio, and changes in packaging, dosage, and dosage form names as the exit reasons.

According to the Legal Expert Examinations Institute, as of 12 July 2019, the State register of capped manufacturer’s ex-works prices for pharma drugs contained over 39,000 register entries (medicinal drugs in doses and units). Only 9 793 drugs are circulated on the market.

Head of FAS Department for Control over Social Sphere and Trade, Timophei Nizhegorodtsev commented: “This environment has been formed for years due to the problems with updating information in the Register. Revision of drug prices has intensified activity of pharmaceutical manufacturers in this area:  companies began to actively withdraw drugs from the Register in doses and packing that are not circulated on the market. It is a positive factor for the market, which in the near future will only strengthen”.

As for numerous frustrations of drug procurement auctions in 2019, they were associated with incorrect estimation of reference prices published in the Unified Information System (UIS), rather than a new pricing method.

“The antimonopoly body continues joint efforts with the Ministry of Healthcare to correct the Unified Reference Book – Catalogue of Medicinal Drugs and an appropriate order. The new version of the order, submitted to FAS for approval, should eliminate the risks of frustrating auctions in case of possible issues related to the catalogue”, says Timophei Nizhegorodtsev.