Russian government to subsidize labeling costs of pharma producers

Print 22 January 2018
Remedium

The Russian government has announced that it will provide subsidies for domestic drugmakers and foreign companies operating in the local market for the partial cover their costs, associated with the forthcoming introduction of labeling procedure in the domestic pharmaceutical market, reports The Pharma Letter’s local correspondent. 

It is planned that these subsidies will be distributed by the Industrial Development Fund, which is a public fund affiliated with the Russian government.

A spokesman of the Russian Ministry of Health said planned labeling of drugs in Russia pursues two major goals: fighting counterfeits in the market and establishing a control system for the movement of drugs from producer to patient.

The latter will allow spending state funds more effectively during public procurements and eliminate a shortage or overstocking of drugs at Russian hospitals. It is proposed the subsidies will cover 10%-15% of the overall costs of labeling. 

Loans for funding modernization of production

In addition to subsidies for labeling, the fund will provide targeted loans to drugmakers to finance construction and installation works for the modernization of production.

This year subsidies will be provided to more than 40 pharmaceutical companies in Russia that will introduce labeling within their production processes. The value of subsidies that will be allocated for these needs is estimated at 1.5 billion roubles ($26.3 million).

The Industrial Development Fund already subsidizes three types of the industry’s costs: the development of improved drug analogues, clinical trials and the production of drugs and substances. 

The allocation of state subsidies for covering labeling costs for drugmakers in Russia is the second concession by the Ministry of Industry and Trade to the market that has been provided for the last several years.

Earlier this year, the government promised domestic drugmakers and global producers operating in the Russian market to consider the extension of the deadline for the introduction of mandatory labeling, which is currently set at January, 1 2019. Planned concessions involve extension of the deadline until 2020-2021.

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