Pharmstandard Chief Executive Officer attends industry development meeting


Sergey Sobyanin, the Mayor of Moscow held a meeting with the representatives of major pharmaceutical companies. The topics of discussion included industry development and import substitution in the wake of the sanctions reports the official portal of the Mayor of Moscow.

'Issues concerning logistics, price fluctuations and national currency exchange rate are all of the paramount importance under the sanctions imposed. Support measures are critical, namely the cooperation between the state and business and understanding of the problems we are currently facing. The Moscow pharmaceutical industry is one of the largest in the country, with sales more than quintupling in five years, demonstrating a significant development rate. The number of industry workers has increased nearly twofold, we observe the persistence of this progress,' the Mayor comments.

This is partly due to the production increase in the city during the onset of the Covid-19 pandemic. According to Sergey Sobyanin, the Moscow pharmaceutical industry met this challenge successfully despite logistical, financial and many other difficulties. Moscow now has an advanced industry support system: enterprises are eligible for receiving the beneficial status of an industrial complex, and special economic zones are being established to stimulate businesses. There are many more support measures, including but not limited to the concessional loans, and subsidies for equipment and technology.

Sergey Sobyanin also notes that Moscow has implemented an offset programme. Business products are guaranteed to be purchased by the State Budget Institutions.

'Our guarantee extends as far as ten years. We place an order, we negotiate with the suppliers for them not only to supply us with medication but also to develop import-substituting production in Moscow. There are currently four contracts signed within the programme, totalling more than 40 billion roubles. They require some shaping up, as they say. New offset contracts, including the supply of not only pharmaceuticals but medical and other consumables, are to be made,' the Mayor notes.

The city is updating all industry support measures. More specifically, a decision has been taken to increase the capitalisation of industry support funds to 10 billion roubles. Support measures are being actively developed in cooperation with the Government of the Russian Federation.

Another support measure in development is the concessional loan subsidising rates for backbone enterprises. There are other options under discussion, particularly those related to the Moscow healthcare system.

‘There is ample room to support the industry. What I mean is the establishment of joint programmes for drug clinical trials, quite a few of which have been recently carried out. We will expand these programmes to enable you to quickly enter the market and provide new products, ensuring import substitution. We also have a separate programme for immunoglobulin production. We would not possibly have developed it without the Moscow healthcare system. Our own roster of drugs that is now manufactured almost exclusively abroad,' says Sergey Sobyanin.

Pharmstandard Executive Director Viktor Kharitonin states that Moscow is experienced in supplying Covid patients with immunoglobulins. He expresses hope that this experience could be extended to other patients: 'We are ready to take over the drug production and would be very grateful for your help in organising the plasma collection for this task.'

Pharmstandard supplies a fairly wide range of products, including those for the city of Moscow. It also was the first company to sign an offset contract.

Sergey Sobyanin touched on the topic of consumables procurement. The city will establish constant procurement and possibly develop long-term contracts based on offset deals. 'We are planning to open a number of advanced donor centres to collect blood and plasma for subsequent drug manufacture, including blood products. We will increase volumes to create necessary product groups in Moscow.'


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