PHP43 - Domestic Manufacturing In Russia: Measuring The Success Of The Pharma 2020 Program

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Russia’s Pharma 2020 strategy, introduced in 2009, asserted the development of a strong domestic pharmaceutical industry as a top priority. One of the core goals of Pharma2020 is to have drugs manufactured in Russia account for a minimum 90% of drugs on the List of Vital and Essential Medicines (ZHNVLP) by 2020 - the country's only national formulary and reimbursement list. This study will examine the methods, success and success factors of the Pharma 2020 program. The ZHNVLP and accompanying regulations from 2009 onwards were examined to determine how many drugs were Russian-manufactured at the beginning of the strategy compared to how many drugs were Russian-manufactured in the 2016 list, and change throughout. Government strategies and external factors (economic growth, inflation, etc.) were analyzed to determine a correlation between factor and the change in the make-up of the ZHNVLP. 65% of the drugs on the 2016 list were Russian-manufactured or Russian-foreign partnership manufactured, an increase from the start of the Pharma2020 strategy. However, the 2014 list was 68% Russian-manufactured or Russian-foreign partnership manufactured. The decrease can be attributed to economic conditions in Russia since 2014. The overall increase compared to the program’s inception can be attributed to stricter government laws around selling and tendering foreign-manufactured drugs in Russia, as the majority of change in the ZHNVLP is a result of Russian-foreign partnerships and foreign companies manufacturing drugs in Russia. Government regulations barring foreign companies from participating in public tendering in many circumstances has been the most effective tactic for Pharma 2020, resulting in an increase of foreign-domestic partnerships and companies manufacturing directly in Russia. As the regulations becomes stricter and expand to include the Eurasian Economic Union, foreign manufacturers will increasingly be pressured to commit to manufacturing in Russia or forego the market entirely.