The new Pricing System in Russia will lead to price decreases for many medicines
Amendments to the Pharmaceutical Law in Russia will take effect from June 2019 and will be completed by 1st January 2021. Medicines which are reimbursed in Russia are listed on the Essential Drugs List (EDL), in which there are currently 735 products, and the pricing reassessment campaign (the “Reassessment”) aims to lower the price for a significant amount of them.
The price decreases will be determined through a new price calculation methodology, approved in October 2018, and will not allow for any price increases. The new methodology will entail branded medicines to be reassessed through international bench marking analysis and the price of generics will be calculated internally by the Federal Antimonopoly Service (FAS) by applying a discount to the price. If a price calculated is higher than the price already registered, the registered price will remain the same.
As a result of this new law, and once the Reassessment is finished, it will be compulsory for pharmaceutical companies to reduce the price of their products each time there is any price decrease for the same product in any of the reference countries.
If companies do not lower their prices to the level required by the authorities, an enquiry will be sent to the respective manufacturer. The company will be able to explain the situation or reduce the price.
Failure to submit an application by the allocated date, will result in automatic cancellation of the respective price. As a result, sales of the original product in question will have to stop from 1st January 2021.
By Tom Brockbank – Consultant, Jack Ziomek – Project Manager & Eishita Patel – Senior Business Analyst
Syrbe, T. and Chivragova, M. (2019). New pricing system for drugs in Russia within sight. [online] Moscow: Clifford Chance. Available at: https://www.cliffordchance.com/briefings/2019/05/new_pricing_systemfordrugsinrussiawithi.html [Accessed 19 Jun. 2019].