Russia may implement state control over pricing in domestic pharmaceutical market; F&S reviews market

25 January 2011

The Russian government is considering introducing a state control over prices for all the drugs in the domestic market, priced at more than 100 roubles ($3.34). Such a proposal has recently been proposed by the Federal Commission on Safety of Medical Business (FCSMB).

According to experts at FCSM, the current mechanism of pricing in the Russian pharmaceutical market provides a competitive advantages to foreign drug companies. In this regard, it should be replaced by the state regulation of prices. At present the latter applies to only so-called essential drugs.

According to initiators of the proposal, there is a need to implement a regressive scale of trade mark-ups (the higher price of the drug, the lower margin) for all the drugs presented in the Russian market and priced at more than 100 roubles. The rate of the mark-up is expected to be approved by the government. Drugs cost less than this will continue to be sold without any state regulation.

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