National Drug Insurance and Reimbursement Rolling Out In Pilot Regions
BMI View: If proven successful, the rolling out of a national drug insurance scheme across the various regions of Russia could provide a boost to pharmaceutical spending. Although we believe generic drugmakers will likely benefit from the programmes initially, we expect multinational drugmakers to either licence production locally or construct facilities in the country to gain preferential treatment. Given Russia's significant disease burden and ageing population, spending on medicines will be sustained for the long term.
In the Kirov region of Russia, a pilot programme for reimbursing specific patient groups is being rolled out. This is the second region to rollout a regional national drug insurance programme in Russia, and already the region is claiming that the programme has reduced deaths from cardiovascular diseases by 20% and reduced hospitalisation of patients with angina and other cardiovascular conditions. The local government in the Kirov region have also claimed significant savings in pharmaceutical expenditure on account of holding procurement auctions for medicines.
Currently these pilot schemes offer full or partial reimbursement to patients with cardiovascular diseases, for which there are an array of generic drugs available currently that offer significant benefits. Many efficacious drugs for treating cardiovascular diseases such as Liptior (atorvastatin) and Plavix (Clopidogrel) have come off patent, allowing regional governments to buy these drugs at a much lower price than before. As a result, patients are expected to pay between 0-10% of the cost of medicines, a considerably better situation than before. If the Ministry of Health rolls forward with plans to introduce generic prescribing, the continued rollout of the national drugs insurance programme will spell significant benefits for generic drugmakers operating in the country, although we do note that local drugmakers or drugmakers with local production capacity will receive preference over those that merely import in their products.
|Long Term Growth In Pharmaceutical Expenditure|