Around three quarters of the
market is supplied by imports as the domestic production
of innovative pharmaceuticals is negligible. This report is ideal for
executives wanting to understand the key drivers in the pharmaceutical
market and have access to a wealth of statistical data, including five-year
market projections. Included with the report are 3 free quarterly updated
outlook reports, enabling you to keep up to date with market developments
for a year.
a population of around 142 million, Russia is a potentially vast market.
Health spending is generally very low, however, in comparison with Western
The country has a sizeable domestic generic industry, but the local
production of innovative drugs is negligible. Russian manufacturers are
small and under-funded, often making do with outdated equipment. Many
locally produced drugs are obsolete outside Russia. Foreign companies such
as Stada Arzneimittel are starting to enter the market however, through the
acquisition of domestic companies.
In 2008, the Russian market for pharmaceuticals is estimated at US$10,483
million. Per capita spending is low, at US$74. It is expected that the
pharmaceutical market will continue to expand at a CAGR of 11.4% per annum,
taking it to US$17,969 million by 2013, or US$129 per capita.
Around 74% of the market is supplied by imports. Germany and France were the
leading suppliers in 2006, accounting for over 30% of imports. The value of
imports reached US$6.1 billion in 2006, an increase of 43.4% over 2005. Many
importers are CEE generic companies such as Gedeon Richter, Krka and Lek.
The market environment remains challenging for overseas companies. Major
problems reported in Russia include corruption, bureaucracy, counterfeiting
and poor data confidentiality. Government officials and politicians often
discriminate in favour of the domestic industry, and enforcement of existing
rules is often weak.
In January 2005, a new system of supplying drugs to vulnerable population
groups was introduced. Each month, patients have to choose between receiving
a sum of R423 (US$16.7) or a package of benefits which includes free
medicines. The system has
difficulties from the start with the government blaming
patients choosing expensive pharmaceuticals. There are plans to replace the
DLO with a system with compulsory health insurance, which would provide free
or low-cost prescription drugs to all Russians, in 2010.