Support For Pharmaceutical Entrepreneurship In Russia During The Pandemic Of "Covid-19"

Abstract

In the presented article, the authors conducted a brief analysis of measures for state support of entrepreneurship in the field of pharmaceuticals. The pharmaceutical industry has always been highly knowledge-intensive and capital-intensive, which made it somewhat "clumsy" to a certain extent. Manufacturers spend colossal financial resources on the development, testing and organization of the product release to organize and launch the production of only one type of drug. At the same time, the industry has a very serious administrative and legal burden associated primarily with the colossal number of regulations that entrepreneurs must comply with. The emergence of a pandemic of a new coronavirus infection, which dealt a blow not only to the domestic economy, but also to global commodity production as a whole, could not bypass the pharmaceutical sector. The Russian pharmaceutical industry has a very weak base for the production of its own pharmaceutical substances and the production of active pharmaceutical ingredients due to a number of historical reasons. The main suppliers of the widest range of pharmaceutical substances are primarily China and India, which were the first to bear the brunt of the wave of morbidity. The partial suspension of production in a number of countries supplying raw materials for pharmaceutical production to domestic producers had a negative impact on the industry.

Keywords: Analysispharmaceutical entrepreneurshippharmaceutical industry

Introduction

The negative impact of the spread of coronavirus infection COVID-19 on the economy of Russia and the world is undoubtedly great, and it is recognized by the official analytical and management bodies of the Governments of all countries. At the moment, there are many scientific publications by reputable research organizations, experts and specialists in this field (Izmaylov et al., 2021). The most significant research is currently interdisciplinary in nature, given the complexity and importance of the problem caused by the spread of the disease. It is very important that, among other things, not only the "official figures" indicate that the spread of coronavirus infection is destroying the economy, but also the rapid decline in the quality of life of people make each person feel the full weight and power of the influence of the "black swan".

Problem Statement

This issue has repeatedly been on the agenda of the state leadership, which resulted in a number of measures to support entrepreneurship in the field of pharmaceutical production (Evstratov et al., 2019). The problem under consideration is of a systemic nature, where the influence of a certain negative factor on one of the components of a complex system will certainly affect the functioning of other associated components (Evstratov et al., 2019). For example, the negative impact of the spread of coronavirus infection on pharmaceutical entrepreneurship negatively affects the country's economy as a whole (Zyukin et al., 2020). Analysis of the impact of government support measures on the development of the industry is of great importance for assessing the productivity of efforts made by the state and the further development of a set of tools for managing the situation.

Research Questions

The main questions that were posed when writing this research study are as follows. What is pharmaceutical entrepreneurship? How is it interconnected with the country's economy as a whole? What are the key interaction features? What measures of state support have been taken in relation to pharmaceutical business?

Purpose of the Study

The presence of the virus is obvious. Today an unprecedented situation for the economy and healthcare is observed in the labor market. People are confused, everything is changing at an incredible speed, the way of life of an ordinary citizen is also undergoing significant innovations. The state of medicine, public health and the economy is actively discussed in the media and on Internet portals. There is not a single area of public life that is not affected by the pandemic. The newest measures to support certain sectors of the economy appear in a constantly changing exponentially changing environment, which, from the point of view of the state, are the most significant for the country. The purpose of this study is to analyze the support of entrepreneurship from the state during the period of the influence of negative factors of the coronavirus pandemic.

Research Methods

The research is based on general scientific research methods: methods of system analysis, scientific abstraction and generalization, comparative and categorical analysis, empirical description. In this article, the results of scientific research of scientists and researchers on the topic under consideration were used. The work used data on initiatives to support entrepreneurship (including pharmaceuticals) by the state. The data is posted in the public domain and does not provide proprietary information. The information presented in the tables was formed by the authors independently on the basis of an analytical method applied to scientific publications, news sources, as well as some types of regulatory legal acts. The method of comparative analysis made it possible to form a table with measures of state support provided specifically in relation to pharmaceutical entrepreneurship. The empirical description method made it possible to set out in the study measures to support pharmaceutical entrepreneurship during the period of the pandemic.

Findings

Today, the state undertakes obligations to support entrepreneurship in general. In order to support small and medium-sized businesses, the state has taken specialized efforts, which can be divided into 9 areas. These directions are presented in Table 1 .

However, there is a need to provide more specific measures to support entrepreneurs due to the specifics of the pharmaceutical industry. One of the main problems faced by the Russian pharmaceutical industry is ensuring the production of finished medicines with pharmaceutical substances. It is no secret that more than 90% of the market demand for pharmaceutical substances was covered by imports, which today have encountered certain difficulties, a change in the manufacturer of raw materials for drug production is not an easy task, for some groups it cannot be done quickly, since a thorough documentary analysis, an in-person site audit, development of pilot production series, and stability studies are required. Based on this, we can talk about supporting pharmaceutical business during the period of the negative impact of the spread of coronavirus infection, it is likely to be carried out through a number of measures such as:

Ensuring the continuation of the rule "extra third", as well as its subsequent development in terms of supporting the production of the full cycle.

• Amendments to the Order of the Ministry of Finance of the Russian Federation of 04.06.2018 N 126n, Decree of the Government of the Russian Federation N 1289 dated 30.11.2015 in order to eliminate the need for a foreign rejected application for the possibility of applying a price preference to a full cycle manufacturer.

• Ensuring the possibility of applying the current price preferences to manufacturers of substances, as well as increasing these preferences from 25 to 40%.

• If a decision is made to create a state reserve of strategic substances, it is necessary to ensure the adoption and application of the “second extra” rule when carrying out the procedure for organizing public procurement.

• Ensuring serial confirmation of the production of the substance (in the drug labeling system).

• Adoption of price preferences depending on the degree of localization in the drug insurance system (at the level of pilot projects with subsequent scaling up to the Russian Federation).

• Shortening the period for adding domestic substances to the registration dossier of drug manufacturers.

• Introduction of a quota mechanism for domestic drug manufacturers.

• Support for the development and preferences for domestic innovative medicines and medical technologies, including the promotion of the integration of industry with domestic science at all levels of business and government.

Further, we will consider the measures that have already been provided by the state to entrepreneurs in the pharmaceutical sector (Table 2 ).

Conclusion

The emergence of coronavirus infection has certainly affected all areas of human life. On the one hand, this is manifested in the negative impact of the current situation on the economic system as a whole, despite its extreme complexity and interdependence. On the other hand, this is reflected in the fact that individual industries, such as pharmaceuticals, suffer. Pharmaceutical business, one of whose functions is to provide all the necessary types of medicines to the population of the state, was no exception in this situation and is actively suffering from the impact of the pandemic. If measures are not taken to support pharmaceutical entrepreneurship, then the risk of reducing the availability of quality medicines to the population increases, which may further aggravate the situation. Accordingly, the attention given by the state in this context is extremely important and necessary for maintaining the health of the population and the country's competitiveness.

References

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2. Decree of the Government of the Russian Federation N 1289 dated 30.11.2015. http://government.ru/docs/20833/
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