AstraZeneca calls on Russian govt to change conditions for generics pricing

AstraZeneca (LSE: AZN) has called on the Russian Ministry of Health to change the conditions for registering prices for generics in Russia, as the current rules, according to the company, prevent original drugmakers from participating in public procurements, reports The Pharma Letter’s local correspondent.

The UK pharm major proposes amendments to the Decree of the Government of the Russian Federation No 865 “On State Regulation of Prices for Medicines Included in the List of Vital and Essential Drugs” (VED) in regard of principles, concerning registering the maximum selling price for generics from the vital and essential drugs list.

According to the Russian Vedomosti business paper, citing an AstraZeneca’s letter to the Russian government, due to the availability of generics in the Russian market at present, the state reduces the cost of governmental contracts for the purchase of vital and essential drugs. As a result, companies that produce original (and more expensive) drugs refuse to sign unfavorable contracts with the state.