Russian Economy Ministry Proposes 200% Revenue Fines for Pharma Patent Violations

© изображение сгенерировано ИИ

The Russian Ministry of Economic Development has drafted a bill that significantly increases penalties for pharmaceutical companies producing and selling generic versions of patented drugs before the patent expires, according to Parlamentskaya Gazeta.

Under the proposed legislation, which would come into effect on September 1, 2027, fines could range from 50% to 200% of the revenue generated from the sale of these drugs.

Individual officials responsible for such violations could face administrative fines of between 10,000 and 50,000 rubles.

Additionally, the bill allows for the seizure of funds from the accounts of companies found guilty of patent infringement, to ensure payment of the imposed fines.

The Ministry argues that current penalties are insufficiently effective, as the maximum fine now stands at 40,000 rubles. This amount, according to the Ministry, does not create sufficient financial risk for pharmaceutical manufacturers, as the potential profits from selling drugs before patent expiration can far exceed the fine.