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Current issue #10, 2018

27.03.2018

A bill on upgrading penalties for corruption in drug procurement introduced to State Duma

State officials took another attempt at curbing corruption, this time through targeting kick-backs in drug procurement. On 12 March, the State Duma received from President of Russia a bill on toughening criminal liability for corrupt practices in the government drug procurement process. Already on 20 March, the deputies reported that they were ready to make amendments to this bill within the next few days and initiate the first reading on 30 March. However, market players suspect that 8 years of imprisonment the bill sets forth for major violations will not stop real Russians.

[PharmVestnik # 10, 27/03/2018, p. 1, cont’d p. 6]

// Regulatory & Legal – General

Loopholes in law provide for unfair competition

Dietary supplement manufacturer Mertsana has been in litigation for several years trying to prove that its trademarks have been misappropriated by an unfair competitor. At the same time, the complex court system results in a situation where a proven fact of trademark misappropriation may, in the worst-case scenario, be disproved by a higher instance. In the best-case scenario, protracted legal proceedings will leave the party affected without remedy at law. The trademark owner suspects the respondent in an attempt at stealing dozens of millions of rubles from the former’s accounts.

[PharmVestnik # 10, 27/03/2018, p. 2]

// Health Strategies & Programs

Pharma-2030 Strategy to be introduced to Russian Government in June

The Ministry of Industry and Trade has set to develop a Pharma-2030 program. On 19 March, a meeting was held on the development of a new strategic document that will outline a general policy for the pharma industry. The work on the document will continue in April and May, while in June it is scheduled to be presented to the Russian Government for review.

[PharmVestnik # 10, 27/03/2018, p. 3]

// Pharma Industry – General

Instable regulatory system still perceived as major market issue

The issues that businesses consider major barriers to the pharma market development remain the same from year to year. According to a survey by EY, businesses are apprehensive about weak intellectual property rights, improper support instruments, and, primarily, the new pricing system.

[PharmVestnik # 10, 27/03/2018, p. 4]

// Pharma Retailing

Pharmacy chains switch over to quick-money agreements

The situation in the pharmacy segment forces basically all pharmacy chains to develop a variety of retailer – manufacturer interaction models to provide for a continuous cash flow. Everybody loves marketing proceeds. According to experts, only the lazy would not try making money on that. However, it takes 2-3 months for the marketing ‘bonuses’ to hit pharmacies’ accounts, while in the tough competitive environment pharmacies need quick money.

[PharmVestnik # 10, 27/03/2018, p. 8]

// Logistics

Regulators challenge compliance with transportation regulations for investigational products

Logistics is key to identifying drug quality issues. It is in logistics that the regulatory authorities seek to find drug storage deviations and conditions for emerging counterfeit products. At the same time, clinical trial sponsors try to minimize their costs due to logistics by saving on vendor services and monitoring, which, in the experts’ opinion, results in product quality compromising risks. Experts discussed logistic issues associated with clinical trials during a business lunch hosted by Corex.

[PharmVestnik # 10, 27/03/2018, p. 9]

// Health Strategies & Programs

So far, Russia has failed to implement new innovative drug procurement models

Russia has folded all operations aimed at the implementation of risk sharing projects, said Vitaly Omelyanovsky, CEO of the Center of Assessment and Quality Control of Medical Services. The expert noted that the Federal Antimonopoly Service was totally against such projects. PharmVestnik tries to find out what is there in the way of launching risk sharing projects.

[PharmVestnik # 10, 27/03/2018, p. 12]

// Insight – Drug Procurement

Drug procurement by prevention and treatment facilities, 2017: a review

According to DSM Group’s Hospital Audit, as of 2017, healthcare centers purchased 259.9B RUB-worth drugs, up by 17% year over year. In real terms, the growth was similar, with 1,038M units purchased.

[PharmVestnik # 10, 27/03/2018, pp. 18-19]

// Insight – Drug Procurement

Drug procurement by healthcare providers, 2017: a review

According to a research by Cursor, the drug procurement trends were largely negative in 2017. Nearly all procurement budgets were cut vs. 2016. The analysts investigate the root causes of the segment slowdown.

[PharmVestnik # 10, 27/03/2018, pp. 22-23]

// Insight – Pharmacies

Results of Pharma-Q Pharmacist Opinion survey, autumn 2017

According to Ipsos Healthcare, the past year demonstrated further consolidation of large pharmacy chains as well as the implementation of numerous instruments aimed at acquisition of small chains and independent pharmacies. To a certain extent, it makes sense as it is mainly big businesses that give rise to effective retail technologies. The latest survey included an extended block of questions aimed at a more in-depth understanding of the business elements differentiating chain and non-chain pharmaceutical retailers.

[PharmVestnik # 10, 27/03/2018, pp. 24-25]

// Extemporaneous preparation

Compounding pharmacies open in certain Russian regions

A renovated compounded pharmacy # 88 opened in the Sakhalin Region. After joining Pharmacia Group, this pharmacy has undergone serious changes to make it profitable. Today, both doctors and public figures speak about restoring demand for extemporaneous preparation of dosage forms required by specific patient groups such as children, the elderly, and subjects with a burdened medical history. Pharmacy chains diversify while complaining about API shortage.

[PharmVestnik # 10, 27/03/2018, p. 26]

// M&A

A federal pharmacy chain acquires two more regional players

Pharmacy chain Pharmland (Ufa) has acquired two chains in the Urals, i.e. Medica (Zlatoust, Chelyabinsk Region) and Pharmart (Ekaterinburg), thus having increased its respective market shares. The federal pharmaceutical retailer is said to continue negotiations with some other chain owners. The observers expect the results in summer when those willing to sell their assets will become more flexible.

[PharmVestnik # 10, 27/03/2018, p. 27]

// Health Management

A regional chain of PET/CT centers is gaining ground

When speaking about nuclear medicine, very few people know exactly what it is all about. Quite often, external beam radiotherapy is referred to nuclear medicine. However, experts insist that the latter includes radionuclide-based technologies. Despite the nonpopularity of these technologies, they are well-developed in Russia, although not to be used on a mass scale. So far, a breakthrough is observed in PET/CT diagnostics.

[PharmVestnik # 10, 27/03/2018, p. 30]

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