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Role of innovation in
state of the art
healthcare delivery in
Russia
27 October 2015, USRBC Annual Meeting
Russian market dynamics
Driven by innovative products last 10 years
2013 – IP Court
established
2010 - New
pricing system
2012 - Russia
joined WTO/TRIPS
2008 – 7 nosologies
2005 - DLO
Source: till 2004y – DSM group, 2004+ IMS Health, calculation. All Channels are included – Retail, DLO, Hospital and Regional
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Impact on healthcare outcomes
Across key therapeutical areas
Access to innovative products has led to significant improvements in
diagnostics, adherence and treatment of socially important diseases in Russia,
helping to decrease mortality rates and increase in life expectancy
Main demographic
achievements:
Key disease areas (Onco, CV, infants
mortality rate):
1%
164 deaths per 100 K
annual decrease in mortality rates
from all diseases led to ~140 K fewer
people dying in Russia in 2011 vs. 2000
in 2013 vs. 200 deaths from Onco diseases per 100
K population in 2000
+4 years
increased life expectancy since 2006
(71.6 years in 2015)
7.5 deaths per 1000
infants mortality rate - a historical minimum
<1 mln
mortality rate from CV diseases in 2015 vs. 1.29
mln in 2005
According to MOH, mortality of working-age population has decreased
35% from 2005 to 2015
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What is important for better access of innovation?
Main developments and government’s initiatives up-to-date
Critical factors
Outcome
Better IP
system
• Russia joined WTO/TRIPS: data
exclusivity embedded into Federal Law
• Court on Intellectual Property rights
• Single IPR body by 2016
From 2005 to 2014 a
number of patented
drugs in the govt
funded mkt increased
from 185 to 825
Improved
Market
Access
• EDL/DLO annual review
• Televised Listing process with KOLs
significant involvement
• Standards of treatments updated
• Diagnostic related groups (DRG)
• Trying to implement HTA
• Biologics and orphan drugs definitions
Since 2006 a share of
innovative drugs in
state purchasing is
approx. 39%
• Government healthcare spending
stable increase…till 2015
• In 2015 government has injected
additional 1 bln USD for drug
procurement
In response to annual
increase of govt spend
on free care by 2% in
2005-2013, CDR
decreased by 1%
Increased
Government
Funding
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Improvements needed
…to maintain innovation in future
Stronger IP system:
• Introduce patent linkage in the drug
registration process
• Create an open database for
patents and for data protection of
innovative drugs during generics’
registration process
• Enhance the role of the Court for
Intellectual Property Rights in
patent infringement proceedings
• Develop practice of preliminary
injunctions against patent
infringements
• Harmonize stronger IP system in the
Eurasian Economic Union
Efficient & transparent market
access for new health technologies:
• Improved collaboration
between industry, patients &
government
• Ensure annual review of Listing
and Standards of Treatment on
the regular basis
• Established criteria and
transparent scoring system in
drug listing process
• Assessing value of local product
status and preferences for
localization
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Health is wealth
Keeping population healthy & productive is a priority
144
143
145
146
54
55
60
64
+10
million
90
88
85
82
-8
million
“Dependent” population
Working-age population
•
Musculoskeletal diseases are among most widespread chronic diseases, accounting for substantial
losses. In Russia the burden of rheumatoid arthritis is about 8 bln RUR (over 80% are indirect costs).
Introduction of early diagnostics and treatment results in additional macro-economic benefits - 3-4
folds higher compared to actual disease-associated expenses
•
40000 of new HepC patients registered annually. 60% of patients in 20-39 years age group
Substantial workability and productivity losses can be diverted if patients have
access to timely diagnosis, treatment & care
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Health is wealth
Conclusion
 Looking to the future, Russia needs to find solutions to pressing
demographic challenges that will impact health and social spending
 Health-related disability increases sharply with age and in Russia there
is an increase in reported disabilities (especially with ageing
population)
 Health is a major cause of productivity loss and early labor market exit,
with many causes being addressable
 Innovative medicines are not only improving outcomes, but also
having impact on workability and on increasing wealth creation
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BACK UP
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And as a result…
Incremental Growth of Innovative Products Quantity on State
Funded Market
Original
Source: IMS Health, calculation
Hospital and DLO Channels are included
USRBC Annual Meeting 2015| Company Confidential ©
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And as a result…
Incremental Growth of Innovative Products Quantity on State
Funded Market
Original
Source: IMS Health, calculation
Hospital, Regional and DLO Channels are included
USRBC Annual Meeting 2015| Company Confidential ©
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