Russian government takes steps to prevent further drug price increases

Print 13 January 2015
ThePharmaLetter

The Russian government is designing a number of measures aimed at preventing a further increase of drug prices in the domestic market, reports The Pharma Letter's local correspondent. According to Russia’s Prime Minister Dmitry Medvedev, the current situation in the market remains complex, which is reflected by the ever-increasing drug prices, caused by currency fluctuations and other factors. Mr Medvedev has also said that the situation is aggravated by the ever growing prices for domestic drugs.

At the same time, according to Olga Golodets, Russia’s deputy Prime Minister, the government controls the current situation in the market, which is reflected by the fact that prices for essential drugs have increased by only 4% since the beginning of 2014. 

Essential drugs list to be expanded 

At present essential drugs account for 40% of the Russian pharmaceutical market. Since 2010 the government has set limits on the prices and maximum wholesale and retail markups for such drugs. According to Ms Golodets, in 2015 the list of essential drugs will be expanded. 

She said that, for the first time, the list will contain a number of expensive drugs to treat rare and life-threatening diseases. In general, the list will be expanded fr om 558 to 608 international generic names. According to Viktor Dmitriev, director of the Association of Russian Pharmaceutical Manufacturers, Russian manufacturers will be allowed to increase prices for their drugs in 2015, based on the level of inflation in 2014. 

At the same time, in addition to essential drugs, the government plans to tighten control for prices for socially significant medicines, among which are mostly cheap drugs. 

According to Elena Nevolina, executive director of the Russian Pharmacy Guild, for the last 1.5-2 months producers have raised prices for 3-5 times without any reasonable grounds, which means that the government should take care the current situation in the market. 

Ms Golodets has also mentioned the plans of the government to use a three-year contract scheme, and in particular with those producers, which will fix prices for the drugs and lim it their margins during the period of the contract.

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