Biotec loses state orders

The company of former senator Boris Spiegel is being ousted from the Russian pharmaceutical market.
The company Biocad, close to Pharmstandard, received the first state contract for the supply of interferon beta-1a, a drug for the treatment of multiple sclerosis, amounting to 1.1 billion rubles. The manufacturer withdrew the share of Biotec's ex-senator Boris Spiegel, who was the main supplier of the medicine, and in 2019 threatens to completely displace competitors.

The Ministry of Health of Russia has summed up the results of the last auction planned for 2018 to supply a drug for the treatment of multiple sclerosis interferon beta-1a. This medicine is purchased under the program of seven high-cost nosologies (7BZN). As follows from the materials of public procurement, the contract for 1.1 billion rubles. went to "Biocad", which offered almost 6 million rubles. less than the second tenderer - "Biotec" ex-senator Boris Spiegel. And "Biocad" for the first time participated in procurement for the supply of this medicine.

In 2017, Biotec was the main supplier of interferon beta-1a, signing contracts for 3.5 billion rubles. The company of Boris Spiegel supplies the drug from the German Merck, packed at the facilities of "Pharmstandard", as well as from the Argentine Laboratorio Tuteur. In addition, the supply of interferon beta-1a from the Iranian CinnaGen to 987.7 million rubles. the company "Irwin 2". In 2018, the Ministry of Health allocated nearly 1 billion rubles for the purchase of this medicine. less than a year earlier, as it should be replaced in part by a new drug Teriflunomide included in the 7th of the VZN (the contract for its supply went to Alexey Repik's R-Pharm). As a result, Biotacu managed to win only in three tenders by a total of 1.8 billion rubles. The share of "Irvin 2" almost did not change and amounted to 962.2 million rubles. Biotec was informed by Kommersant that the loss of this contract will not affect the company's activities.

"Biocad" registered the Russian analogue of interferon beta-1a under the brand "Theberi" in February 2017. As explained to "Kommersant" by the company's CEO Dmitry Morozov, due to limited production capacity, "Biocad" only recently established a sufficient production volume for federal needs. According to him, next year Biocad plans to participate in all auctions for the supply of interferon beta-1a.

Biocad belongs to the Cypriot Biocad Holding, which is owned 20% by Pharmstandard by Viktor Kharitonin, another 50% by its partner Valery Egorov. The remaining 30% of Biocad Holding is held by Dmitry Morozov. "Biocad" produces drugs for the treatment of cancer, viral and infectious, as well as autoimmune diseases at facilities in the Moscow region and St. Petersburg. According to SPARK-Interfax, the company's revenue in 2011 amounted to 11.5 billion rubles, net profit - 5 billion rubles.

Interviewed by Kommersant, market participants predict that in 2019 Biotech and Irvin 2 will lose their shares in the purchase of this drug. Deputy CEO of Stada CIS Ivan Glushkov also recalls that in May the government expanded the rule of the "third extra" by adopting a resolution presupposing additional price preferences to Russian pharmaceutical companies. These preferences (their size has not yet been determined) will be available to enterprises that have the production of substances localized. Mr. Glushkov notes that Biocad is actively setting up its own production of substances, which will significantly complicate the participation of foreign producers in public procurement.