Russian government to further tighten public procurements of drugs

The Russian government is considering a further tightening of public procurements of drugs for state needs by introducing the “second extra” principle, when the application of a Russian company that failed to localize the production of raw materials within the country will be rejected, according to recent statements made by some senior state officials and some local media reports.

According to state officials, implementation of these plans will be part of the existing state course of import substitution in the domestic pharmaceutical market. Due to the pandemic Russia has faced, with an acute shortage of raw materials in its pharmaceutical sector although as part of the plans of the Russian Ministry of Industry and Trade to localize at least 80% of raw materials, which are used in domestic pharmaceutical market within the territory of the country.

These plans, however, have already been criticized by representatives of pharmaceutical companies, according to which the achievement of such targets will be almost impossible due to low profitability for the establishment of such productions.