| THE RUSSIAN PHARMACEUTICAL INDUSTRY —
LOOKING FOR A CURE FOR COUNTERFEITS May 16, 2003 Moscow, Russia The Russian pharmaceutical industry, and retailers in particular, are negatively viewed by consumers not only for high prices but for exposing consumers to counterfeit products. This was one of the conclusions of the CIPR consumer research described in last month's CIPReport. To discuss the results of the poll and provide a venue for the Ministry of Health to outline its strategy for protecting Russian consumers, CIPR hosted a special pharmaceutical industry session on May 16. Participants included representatives of Russian industry and the Ministry of Health, represented by Mr. Alexander Toporkov, Deputy Head, Department of State Control for Quality, Effectiveness and Safety of Pharmaceuticals and Medical Equipment. The consumer survey under discussion, a comprehensive opinion poll of 2000 Moscow and Samara consumers, Consumers Attitudes and Behaviors Towards Counterfeits and Brands, was conducted by CIPR and consumer organizations. The survey, which asked specific questions about counterfeit pharmaceuticals, has been the subject of considerable discussion by government, news media, brandholders and retailers. Eighty-four percent of survey respondents said that counterfeit medicines are "absolutely unacceptable." Despite public concern over the current prices for medicine, more than 50 percent of Muscovites said that they were ready to pay even more for a guarantee that the medicine they purchase is genuine. Mr. Toporkov described measures implemented by the Ministry of Health aimed at fighting fake drugs in the Russian pharmaceutical market. The program to fight counterfeits began in 1991 and includes the creation of a pharmaceutical inspection and quality control system, certification of drugs and the introduction of amendments related to fighting counterfeits into Russian law, Toporkov reported. Despite these measures, the level of counterfeits remains disturbingly high. 27 names and 51 series of counterfeit medicines have been discovered since the beginning of the year, according to the Health Ministry. CIPR works closely with the Russian pharmaceutical industry through association members - the Association of International Pharmaceutical Manufacturers (AIPM), the Association of Russian Pharmaceutical Manufacturers and the Union of Professional Pharmaceutical Organizations, which includes the major Russian retail and pharmacy chains. A dialogue aimed at addressing consumer concerns will continue. | 
