RUSSIAN PRESCRIBING LAW TO BOOST GENERICS, THREATEN FOREIGN FIRMS

Russia's legislature is set to pass a new law next year prohibiting doctors from prescribing by brand name. The measure will require prescribers to use the international nonproprietary name (INN) for prescriptions, rather than a drug's brand name, a move likely to boost consumption of generics. As patients pay for the greater part of drugs purchased in Russia, the draft law's supporters hope it will also cut pharmacy bills.

However, opponents to the new bill -- which passed a first reading in July -- claim that savings could threaten public health. This is due to doctors' lack of familiarity with INNs, coupled with lax government controls over Russia's thriving copy industry.

It is estimated that if the bill becomes law, sales of branded drugs could drop by as much as 20%. Foreign firms already account for nearly 80% of drug market value in Russia. Nevertheless, sales are growing rapidly and the market is already valued at US$6.35bn, with generics -- whether off-patent or not -- accounting for 88% of sales. Some observers believe that the market could reach US$8.65bn by the year's end.