Drugmakers call for additional premiums from Russian government during public procurements

Russian and global pharmaceutical companies operating active substances’ production in Russia want to receive a premium of 40% of the value of the public procurements contracts signed with the Russian government, according to recent statements by Veronika Skvortsova, Russia’s Minister of Health, reports The Pharma Letter’s local correspondent.

Vikram Punia, president of Pharmsynthez (MICEX: LIFE), one of Russia’s leading drugmakers, said the company supports this proposal, noting that, if these 40% premiums are introduced, Pharmsynthez will be ready to invest more than 10 billion roubles ($174 million) in the production of substances in Russia.

The same position is shared by Dmitry Morozov, chief executive of Biocad, another leading Russian drugmaker, who said he supports the introduction of a 40% price premium since this can increase the investment attractiveness of the entire Russian pharmaceutical industry.