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Foreign companies are cutting production of essential medicines because of the devaluation of the ruble

Foreign manufacturers cut production of vital and essential medicines because of the substantial depreciation of the ruble, "Vedomosti".
Top-manager of one of the foreign drugmakers told the newspaper that the company canceled or reduced orders at factories in several names - up to 20% of sales - as a 30 percent increase in the dollar makes production unprofitable.
Essential drugs occupy one third of the pharmaceutical market, with most of them made overseas. Prices of drugs from the list of regulated Ministry of Health and the Federal Service on Tariffs and regions set wholesale and retail markups.
The last time prices were rebooked in rubles in 2010, but since then the ruble fell by 40% against the US dollar and 34% against the euro. Compensate for the fall of the ruble increase in the prices of other drugs companies can not due to stand still income levels.
According to DSM Group, from December 2013 to September 2014 vital medicines in pharmacies rose 2.9%, the drug is not in the list - by 8.8%.
If the price of drugs, the VED list will not be indexed for inflation and sharp changes in exchange rates, the Takeda is considering to stop or reduce the supply of unprofitable products, said CEO "Takeda Russia" Andrey Potapov.
The representative of Gedeon Richter said that the ruble affect the company's operations in Russia: 1% devaluation compared to HUF leads to a decrease in profit of 550 million forints (about 96 million).
Boehringer Ingelheim plans to deliver drugs in Russia from the list of VED in full and submitted to the Ministry of Health even five proposals for inclusion in the list of medicines. Pfizer also did not change the policy on essential medicines and apply for the inclusion of several drugs on the list. Sales VED not affect the performance of the company, said an employee of another manufacturer who does not plan to revise its policy.
Source: www.recipe.ru


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