08/28 06:54 FOCUS-Rouble crisis chokes off arrival of medicine
(Releads with new quotes, detail) By Adam Tanner
MOSCOW, Aug 28 (Reuters) - The sudden halt in the convertibility of Russia's rouble has choked off the arrival of new medicine and could endanger the nation's health if current uncertainty continues, experts said on Friday.
"The importation has almost stopped," said Manfred Hollstein, president of Swedish-Americian group Pharmacia & Upjohn Inc <PHU.ST> <PNU.N> in Moscow. "The banking system is not working, that means no bank transfers, no payments, no guarantees."
"From the beginning of the chain outside of Russia right up to the pharmacies there is an unclear situation," said Hollstein, whose company's sales to Russia include cancer drugs. "The pharmacies don't know what to charge, the international companies don't know how to receive money."
Moscow's main currency exchange has cancelled foreign trading for the past three days. Companies know the Russian rouble is worth far less than it was earlier this month, but they do not know precisely by how much.
As a result, importers of all goods into Russia face an anarchic market, but the potential for disaster is especially critical with medications.
"Everything is pretty much gummed up at the moment," said Kenneth Peterson, local marketing manager for Pfizer Inc <PFE.N> of the United States. "And until the rouble re-emerges again, it's probably going to stay pretty much gummed up, but after that it may start moving again."
Pfizer's best selling drug in Russia treats hypertension.
The halt in trade could even affect the sex life of some.
Peterson said plans to introduce Pfizer's impotence drug Viagra to Russia scheduled for October could be delayed if importers simply cannot afford the popular new medication.
Anton Katlinsky, the Health Ministry official responsible for Russia's drug and medical equipment supplies, said 60 percent of Russia's medicine is imported.
"If the financial crisis in Russia worsens over the next few months, then a disruption of medicine is possible," he said in a statement on Friday. "The supply of life-vital drugs is enough for up to a three-month period."
The statement said that the Health Ministry was taking steps to assure the flow of needed medicine, but it was unclear what the Russian government, on the verge of bankrupcy, could do.
The ministry said it was attempting to work with large suppliers to build a backlog of essential medicines.
Russia already has a poor, underfunded health care system which is a factor in the average male mortality age of 58.
Some pharmacies in Moscow closed altogether on Friday as they did not know what prices to charge.
Because middlemen who distribute medicine to pharmacies often pay a month later, they do not know what prices to charge, and are mostly deciding to defer sales for the time being, officials say.
The freeze of official trade in the rouble has also left importers unable to raise large quantities of hard currency to pay for new shipments.
Hollstein of Pharmacia & Upjohn said ordinary toiletries. including diapers, were becoming hard to come by.
"It's difficult or very expensive to find things like Pampers or vitimins," he said. |
