FAS Proposals For Reference Prices Will Concern Drugmakers

BMI View: Early-stage discussions to decide on a new method for the Russian authorities to regulate the compensated price of medicines creates new risks for drugmakers operating in the market. However, BMI notes that the discussions of the Federal Antimonopoly Service (FAS) will not necessarily result in a formal proposal being adopted, as the FAS makes many suggestions that the government does not act upon. As the details of a potential new reference system for determining the compensation price of medicines are in the early stages, a quantitative analysis of the likely impact would be premature. While it is likely that a new system would create downward pressure on the price of certain medicines, through greater price competition between drugmakers, the FAS' recognition that the existing system is leading to the removal of some products from the market suggests it appreciates that compensated prices must be fair or access to advanced medicines will be restricted.

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