Authorities are preparing additional preferences for Russian pharma manufacturers

| By | Drug Manufacturing, Drug Procurement

Since 2019, the manufacturers of Russian medicines will be able to sell these drugs to the state at a price that is 25% higher than the minimum price of the contract. A relevant draft order on additional preferences for manufacturers of Russian medicines is being prepared for state registration in the Ministry of Justice, announced the press service of the Russian Ministry of Industry and Trade. The document was elaborated by the Ministry of Finance.

It stipulates that the state will purchase Russian medicines at a price that is 25% higher than the price of imported drugs. This shall include the products manufactured in Russia entirely from locally available components (including substance and packaging), said Alexey Alekhin, Director of the Department of Pharmaceutical and Medical Industry Development at the Russian Ministry of Industry and Trade. The conclusion on whether a drug meets these requirements will be issued by the Ministry of Industry and Trade. The document is expected to come into force on January 1, 2019.

Currently, under the public procurement rules, the auction is won by the company that offered the lowest price. Both domestic and foreign companies can participate in the competitive bidding. However, the manufacturers using Russian substances can now get state preferences. For example, if they win a competitive bidding for 100 thousand rubles, they can actually get 125 thousand rubles. These preferences are needed to support the local companies.

Building a coherent system of preferences will allow Russian companies to significantly increase their output, said Nikolai Bespalov, Development Director at RNC Pharma, an analytical company.

“In the first year, the increase will range from 1% to 5%. In the future, with continued preferences, it may actually grow by 10% a year and even more,” he added.