Pharmaceutical Executive Europe - August 2008 - (Page 11)

Pharmaceutical Executive Europe August 2008 BioFutures 11 Steering Pharma in Russia In the first of three special reports from Moscow, Gerhard Symons reports on pharma developments in the Russian Federation. n 2007 western pharmaceutical firms in Russia were in a bind. The Russian government collectively owed them billions of rubles for high-value, innovative medicines prescribed within a chronically under-funded drugs reimbursement programme (DLO). Government payments scheduled within 180 days were taking up to 18 months, if paid at all, with the net result that western firms were effectively bank-rolling the State programme. When former Minister of Health, Mikhail Zurabov, suggested that firms write off these debts, western pharma took an adversarial stance and engaged diplomatic channels to lobby a seemingly intransigent government. However, according to Vladimir Shipkov, Executive Director, Association of International Pharmaceutical Manufacturers (AIPM), “a Russian problem needs a Russian solution.” In recognition of this, Mr Shipkov’s appointment in February 2007 as the first Russian to be the nominated representative for western pharmaceutical interests in Russia was a “brave step by the board.” Mr. Shipkov’s wide-ranging experience includes stints as a topranking civil servant in Customs & Excise, RosZdravNadzor (Russian Pharmaceutical Inspectorate), and most recently as Deputy General Director of the Russian Patent Office. Western pharma sorely needed a representative with the ability, not just to navigate the labyrinthine Ministries of State, but also with credibility amongst peers to “create transparency between all stakeholders and build relationships based on dialogue and predictability.” The first act was to negotiate the DLO issue by engaging two influential federal agencies, RosZdravNadzor, and the Federal Fund for Mandatory Medical Insurance (FFOMS), with official co-operation agreements to establish working relations enshrined in law. On behalf of member companies, AIPM successfully negotiated a commitment that all DLO debts were to be paid. Today, virtually all 2006 DLO debts have been settled, and funds from the federal I budget have been allocated for 2007 debts, although these are being monitored closely by AIPM. Previously, the AIPM officially met Russian authorities only once or twice a year but during Mr Shipkov’s tenure to date the AIPM has enjoyed unprecedented ministerial access, with over a dozen meetings, including four with the new Minister of Health (MoH), Tatiana Golikova, appointed in October 2007. This approach has proved to be fertile ground for the AIPM which, for the first time, has official representation on a number of influential committees, including the long-awaited working group for revising the 2006 law on medicines, and the working group to agree inclusion criteria for the list of reimbursed medicines. With health as one of four ‘National Priorities’ for the Russian government, Prime Minister Vladimir Putin addressed a pharmaceutical conference in Kursk in June speaking about “targeted co-financing of medicines” and “creating a universal system of pharmaceutical insurance,” which, according to Mr Shipkov, could be realised as early as 2010. However, with some high-value therapies costing tens of thousands of dollars a year, even subsidised drugs are still far beyond the reach of ordinary wage-earners. Renaud Visage/Getty Images

Table of Contents for the Digital Edition of Pharmaceutical Executive Europe - August 2008

Pharmaceutical Executive Europe - August 2008
Contents
From the Editor
News and Analysis
Calendar
The Calm Before the Storm
Steering Pharma in Russia
Built on Sand
Renaissance Man
IT Meets IMI
Send for the Software Specialists
Know Your eMarket
Last Words

Pharmaceutical Executive Europe - August 2008