American multinational pharmaceutical company MSD has revealed its decision to halt exports of Zepatier, a drug used for treating hepatitis C, according to business daily Kommersant. The Russian health regulator Roszdravnadzor stated that manufacturers are obligated to inform suppliers about discontinuing deliveries a year before the actual cessation of imports. The regulator clarified that Zepatier deliveries by MSD will continue as scheduled until the end of 2024.
Reports from local media indicate that the Russian Health Ministry sent out notifications about the suspension of Zepatier and other drugs’ supplies to hospitals, but later retracted the announcement. Zepatier is primarily used to treat adults with hepatitis C of the first, third, and fourth genotypes. Although pangenotypic medicines, which are effective in curing any type of virus, are currently prioritized by both the World Health Organization and the Russian Ministry of Health, Zepatier remains in high demand.
Analysts at Zdravresurs have stated that Zepatier accounted for 19% of the government-financed treatment patterns for hepatitis C last year, amounting to $11 million. However, the share has slightly declined to 18%, or $7.6 million, since the beginning of this year. Despite the availability of alternatives being developed by multiple pharmaceutical firms, Zepatier has no direct substitutes in Russia.
Regarding the impact of the halt in Zepatier supplies, Zdravresurs believes that the expansion of the use of pangenotypic drugs like Maviret and Epclusa, produced by US pharmaceutical companies AbbVie and Gilead, can offset any major consequences. While the supply of drugs and medicines has not been affected by the sanctions imposed on Russia, global pharmaceutical giants have started scaling back their operations in the country.
Pfizer, Bayer, Gilead, Novartis, MSD, Sanofi, and AbbVie are among the companies that suspended investments or clinical trials in Russia in March 2022. MSD has also ceased supplying vaccines against chickenpox, measles, rubella, and mumps to Russia, along with Raltegravir, a medicine that reduces the chances of HIV-infected individuals developing AIDS. The company justified its actions by stating that it intends to prioritize the provision of vital vaccines that have no alternatives within Russia.
This reduction in Western pharmaceutical companies’ presence in Russia presents an opportunity for India’s big pharma industry. With the cutback in supplies from Western sources, Russia may turn to India for the procurement of essential drugs. Indian pharmaceutical companies have a competitive advantage due to their expertise in producing affordable generic drugs.
In conclusion, MSD’s decision to halt exports of Zepatier, a drug used to treat hepatitis C, has prompted concerns about the availability of effective treatment options in Russia. While alternatives are being developed, Zepatier remains in high demand. The reduction in operations by global pharmaceutical giants in Russia is likely to influence the country’s healthcare system. However, it also presents an opportunity for India’s big pharma industry to cater to Russia’s healthcare needs.
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