The pharmaceutical industry in Russia: An overview

The pharmaceutical business in Russia had a turnover of $16.5 billion in 2016, which was a capable 1.3 you look after value and 19.9% of health outlay.

The Russian tending system is funded by the national, social outlay and also the Federal mandatory Medical Insurance Fund. However, the business expects a giant shift towards the personal tending outlay.

Russia could be a net importer of prescribed drugs, importation $8.9 billion whereas commerce $635 million of medicines. getting ready to eightieth of imports return from Europe, principally from FRG and France.

Local market:

The Russian pharmaceutical market is often divided by prescribed drugs and over the counter drugs. The pharmaceutical sales traditionally took the most important share of the market, capturing 61% of the market in 2016. The sales of generic medicine dominate within the prescription class at 64.5%. Out of all pharmaceutical sales, they represent solely 39.4%.

The most widespread diseases in Russia are vessel diseases, cancer, and HIV. As a result, pharmaceutical merchandise addressing these ailments is the leading sub-sectors for the pharmaceutical business in Russia.

The largest makers by retail sales embody Sanofi, Bayer, Novartis, Servier. Pharmstandard is the largest domestic manufacturer by sales

Drugmakers do not like to work with retail pharmacy chains or pharmacies directly, relying instead on distributors to market their merchandise to shops. Distributors operate huge networks of contacts and work to direct retail distribution channels. per DSM, one among the main Russian pharmaceutical Agencies, the main four distributors embody Katren, Protek, Rosta, and Central Intelligence Agency.

Import substitution efforts:

The Russian government is concentrated on making its own pharmaceutical business. the most document that governs this focus is that the “Pharma 2020 Strategy”. Its main goal is to cut back the reliance of the Russian economy on foreign prescribed drugs. In Gregorian calendar month 2016, Prime Minister Medvedev same that he expects the domestic production to extend from 28.5% currently to 75% by 2020