New Russian drug subsidy concept may upset Richter?s plans
Friday, June 3, 2005, 13:03
Regional market leading pharmaceutical Richter Gedeon Rt may be forced to reduce exports to Russia or relocate production of certain products to that country due to planned changes to the Russian drug subsidy system, the company announced. In a decree that has not yet officially been published yet, Russia?s health ministry amended the free prescription drug program for the underprivileged, which has a $1.7 billion budget this year. In line with the amendment, only domestically manufactured products will remain on the subsidy list as of Dec. 1. 25% of Richter?s Russian exports in Q1, or $10 million worth of medications, were paid for by the Russian state and prescribed free of charge for financially challenged patients as part of the subsidy system.