Sanctions Challenges for the Pharmaceutical Industry

European pharmaceutical industry equipment manufacturers began to refuse to supply spare parts and components to Russia. This may lead to suspension of the release of new medicine and also makes Russia search for alternative suppliers.


Several representatives of the pharmaceutical industry told about the problem with supplies. Thus,  Vikram Punia, the president of "Pharmasynthesis", confirmed that German comapnies Syntegon and GEA had suspended their deliveries to Russia. Other companies, including German Sartorius and American Citiva, have suspended accepting orders from Russia, but are not going to leave the market yet.

At the same time, the sale of equipment for the pharmaceutical industry and spare parts are not included in the EU sanctions, and their supply is not prohibited.

Experts believe that one of the main problems that led to the current situation is the lack of government incentives for the production of equipment for pharmaceutical manufacturers in Russia. According to Nikolay Bespalov, RNC Pharma Development Director, such equipment could be produced by large defense industry concerns, but they do not do this due to limited demand.

Some parts supplied from the EU can be reproduced by domestic companies on their own, but there are great difficulties in developing new parts. An additional complication is that the delivery of these parts via third countries is impossible, since each of them is manufactured for a specific manufacturer and has a unique number. According to Peter Rodionov, CEO of Geropharm, this may mean that the production of new drugs will be difficult.

The Ministry of Industry and Trade does not consider this a big problem. According to them, Russian pharmaceutical manufacturers have a sufficient stock of components and specialists for their maintenance. The ministry also hopes for equipment from Russian machine builders.

In parallel, the Ministry of Industry and Trade is searching for suppliers from friendly countries, primarily in China and India. However, the question arises about the compatibility of equipment from India and China with existing lines, as well as the possibility of manufacturing equipment in these countries.

Source: Kommersant

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