Pharmaceutical companies have to sell generics cheaper

The emergence of a large number of generics of lenalidomide for the treatment of multiple myeloma instead of the original drug from the American Celgene, which lost patent protection in Russia, led to a sharp drop in prices for the drug in government procurement. Thus, the structure of the Ministry of Health managed to reduce the cost of the largest contract by almost 200 times this year – from 1.02 billion to 5.4 million rubles. for 10.2 thousand packages. For this price, Biocad agreed to supply its analogue. According to market participants, pharmaceutical companies are forced to sell the drug with almost zero profitability due to high competition and a possible excess of the drug in warehouses.

In January-August 2023, the average price of lenalidomide for multiple myeloma in general for all state tenders, including regional ones, decreased by half year-on-year, Headway Company told Kommersant. For comparison: last year, the average cost of the drug only under federal government contracts, under which it has been purchased since 2016 for a program for 14 high-cost nosologies, was 88 thousand rubles. per package. The total volume of purchases from federal funds in previous periods reached 7–8 billion rubles. in year.

In July 2022, the patent protection of the original Revlimid from the American Celgene expired in Russia, and now government procurement operators are purchasing generics. Today, about 15 analogues of lenalidomide are registered in the country.

Since the beginning of 2023, the most noticeable decrease was recorded when concluding the largest contract with a starting value of 1.02 billion rubles. for the purchase of 10.2 thousand packages of the Federal Center for Planning and Medical Supply of Citizens, subordinate to the Ministry of Health. Biocad, which won the auction, agreed to supply this volume almost 200 times lower – for 5.4 million rubles, or 527 rubles. per package. At the same time, the company previously registered its generic “Rupsulimide” with a price of 96.2 thousand rubles. per package. Eight companies participated in these PKU auctions.

At state tenders, the pricing methodology for generics provides for a reduction in prices by approximately 30%, and the final purchase price is determined at an open auction, Biocad explains. They say that now treatment with lenalidomide “becomes available to patients, freeing up funds for the healthcare system.” The company adds that the decision to participate in the next auction will be made based on market conditions and auction conditions.

Another contract was won by Biopreparat, which agreed to supply the Ministry of Health with a generic drug from Promomed at a price of 1 thousand rubles. per package, or for 1.9 million rubles. for the entire volume. The government procurement operator managed to reduce the price by 50 times, Kommersant calculated based on bidding materials. Promomed declined to comment.

In just eight months of 2023, FKU purchased lenalidomide for a total of 232.3 million rubles. with a total starting price of auctions of 1.48 billion rubles.

Another 905 million rubles. The drug was purchased by regional government procurement operators: they also managed to obtain a significant discount from pharmaceutical companies. Thus, R-Pharma and Ozon Pharmaceuticals agreed to supply their generics to the regions for up to 10 thousand rubles. per package. Ozone and Biocad say that there is now high competition in the lenalidomide segment, and players have to reduce prices at state tenders. R-Pharma declined to comment.

The price at past state tenders most likely reflects the real cost of the drug, says Nikolay Bespalov, development director at RNC Pharma. But the chief executive officer of Ozon Healthcare (part of Ozon Pharmaceuticals), Andrei Gorshkov, believes that manufacturers could reduce prices due to the emergence of a surplus, the shelf life of which will soon expire. In such circumstances, manufacturers can sell the drug with zero profitability, he does not rule out the possibility.

In 2022, PKU began purchasing pomalidomide for patients with multiple myeloma. Although generics of this drug are also purchased at state tenders, prices for them at tenders have hardly decreased. But no more than two participants applied for auctions.

Polina Gritsenko