The cost of drug labeling implementation is considered as reasonable

| By | Drug Marking

According to market participants, the costs of drug manufacturers on mandatory implementation of labeling by 2020 will not increase the cost of drugs.

“We do not expect that the cost of medicinal products manufactured by Stada will rise following the implementation of drug labeling,” said Ivan Glushkov, Director of External Relations Department at Stada Russia.

Alexander Bykov, Director of Health Care Economics at R-Pharm, also does not expect that the drug prices will increase.

“It is important to note that the prices for medicines from the list of vital and essential drugs are approved by the federal government, regulated by relevant government decree, and their change is monitored by the Federal Antimonopoly Service (FAS), Roszdravnadzor, and the General Prosecutor’s Office. Therefore, the implementation of labeling will not increase the prices for medicines from the list of vital and essential drugs,” said Mr. Bykov.

According to Mr. Glushkov, “the expenses on implementation of labeling represent such an insignificant share of working capital in the pharmaceutical companies that no one can seriously talk about risking bankruptcy or leaving the market as a result of it.”

The cost of labeling implementation is regarded by R-Pharm as being justified. The Director of Health Care Economics at R-Pharm noted that, for legitimate pharmaceutical manufacturers, it was important to prevent counterfeit products from entering the market.

“The costs of installing and commissioning equipment can be significant, as they depend on the number of lines and type of installed equipment. But, when we talk about the inevitable costs, we should not think about their amount, but rather about the price to pay if counterfeit and falsified goods continue to flood the market. The damage caused by such fake medicines to health care system, manufacturers, and distributors, and, most importantly, to the health of patients, is colossal,” said Mr. Bykov.