Sergey Patrakeev, Lidings, on Legal Risks in the Russian Pharma Market
Published on 28 April 2015 by Editorial
As an emerging market, the Russian pharmaceutical sector relies more than ever on legal support to overcome the most complex of challenges such as localisation, import substitution and adherence to government regulatory policies.
One international law firm advising pharma companies in the Russian Federation is Lidings, which acts as advisor on critical issues including legal matters, interaction with state authorities, handling contractual work, tax and customs regulation, complaints, litigation procedures and much more. To gain more insight, we spoke to Sergey Patrakeev, a Partner at Lidings, who told us about the legal risks as well as regulatory changes currently faced by pharma companies in Russia.
Sergey Patrakeev is a Partner in Lidings’ Corporate and M&A practice and Co-Head of Real Estate and Construction practice in the Firm’s Moscow office.
Sergey specializes in advising foreign business on all aspects of corporate law, supports M&A transactions, and acts as a legal expert in deals connected with purchase and construction of real estate property in Russia.
He is the author of a number of articles in “The European Lawyer”, “Focus Europe”, “Corporate Lawyer”, “Mergers and Acquisitions”, and other leading publications in Russia and abroad.
What do you believe to be the key legal risks in the current pharma market?
In terms of legal risks, the pharma market today should not be taken alone, out of context. Thus, transjurisdictional effects of foreign legislation acts (e.g. imposing sanctions or additional obligations in connection with anticorruption practices) may come in direct conflict with certain provisions of national legal order in Russia. And this is a challenge for Russian lawyers, to find a compromise solution every time when such a conflict occurs.
Looking at risks associated with localization and private public partnerships, governmental control (pricing, antitrust, anticorruption), interactions with HCPs in the region - Are the risks greater in Russia than in a lot of other countries?
Generally, I tend to avoid any comparison in such terms. First, it is not a good justification for ignoring the legal risks in Russia just because such risks can turn out to be lower than in some other countries. Second, this comparison will not bring much for the companies generating growing revenues in Russia and stable or falling revenues in those “other countries”. All risks emerging in the Russian legal landscape should be measured and evaluated in terms of Russian legislation only – with the aim to find the practicable solution to mitigate such risks, rather than play with ideas like gaining share in Russian market with application of rules elaborated for foreign markets.
Lidings Russia are headquarted at the City of Capitals complex in the Moscow International Business Centre.
What regulatory developments in pharmaceutical sector are you expecting in the next 6-12 months?
We expect that in the nearest time the regulatory developments will follow the general path of incentives for localization of manufacturing and stimulating new generics to enter the market. Reduced to a slogan, this sounds like “Buy local and cheap”.
In light of the current market situation, what are the main objectives you are setting for your team in the next 12 months?
Our main objectives remain the same as they were set up in earlier periods: to make our clients happy by offering them the best legal solutions possible in context of current regulatory framework.
- Sergey Patrakeev will speak at the 21st Russian Pharmaceutical Forum by Adam Smith Conferences, which will take place 19-21 May, 2015 in Saint-Petersburg.