Russia debates pharma reform

The US is not the only country in the throes of passing significant legislation on major health issues.

A bill has just gone through the Russian parliament, the Duma, aiming to rekindle development of the domestic pharma industry.

If passed, following a third reading in September, it will set a maximum price on 500 drugs including treatments for tuberculosis and diabetes – a move designed to make them more affordable.

“The pharmaceutical market is not like any other, it has to do with the health of our citizens,” said Diana Mikhailova, head of the country’s department for development of the pharma market.

“That’s why the government must be involved and regulate prices,” she added.

Included in the new measures are plans that would require the authorities to publish a price list at every pharmacy.

Another important measure is aimed at protecting the market from counterfeit medicines and ensuring companies that manufacture drugs in Russia comply with European quality standards by 2014.

“We’ll have to make sure that all those drugs currently produced by companies that have no chance of switching to European standards will still be produced by other companies in the future,” concluded Mikhailova.

Imports currently account for 75% of Russia’s pharma market and the legislation is aimed at shoring up and developing domestic business.

However, ministers have denied that the introduction of foreign drugs would be delayed under the new rules.

Trailed as part of a wider governmental agenda to modernise the country, the bill followed criticism of the industry by President Dmitry Medvedev last August.

While a report in January from Business Monitor International said the regulatory environment “remains in flux”, it added that Russia’s pharma market is “surging with new investment projects”.

One estimate puts the value of the Russian pharma market at $20 billion, with growth returning in the wake of the global downturn.

The country is also keen to position itself as an attractive location for clinical trials, one that offers a large pool of patients and costs typically 45-50% below those in the West.