Drugmakers oppose introduction of subsidization practice in Russia

The Russian government is considering subsidizing the production of cheap drugs, amid the fears of their disappearance from the market, according to recent statements of Arkady Dvorkovich, Russia’s Deputy Prime Minister, reports The Pharma Letter’s local correspondent.

Mr Dvorkovich said that the production of cheap drugs is still unprofitable for producers, which forces them to suspend further production. Due to this, the Russian government has not ruled out the possibility of the introduction of the practice of price regulation, as an alternative option for subsidization.

In the meantime, some leading Russian drugmakers and foreign drugmakers operating their plants in Russia have criticized the latest state plans, as, according to them, the introduction of the practice of subsidization may result in the appearance of monopolies in the market and withdrawal of smaller producers.