Search

Russia: Market Overview Pharma Market to Reach 36.61 Billion Dollars by 2021: Global Data

Editor: Ahlam Rais

The ‘Pharma Strategy 2020’ implemented by the Russian Government aims to increase the domestic production of pharmaceutical products. An import substitution policy has also been implemented by the government for the pharma sector.

Related Company

The report reveals that the key market drivers are improving regulatory guidelines together with government initiatives to develop Russia’s pharmaceutical market.
The report reveals that the key market drivers are improving regulatory guidelines together with government initiatives to develop Russia’s pharmaceutical market.
(Bild: Deposit Photos)

Russia – The company’s latest report: ‘Country Focus: Healthcare, Regulatory and Reimbursement Landscape – Russia’, reveals that the key market drivers are improving regulatory guidelines together with government initiatives to develop the domestic pharmaceutical market. However, limited access to healthcare facilities, price cuts, high Out-Of-Pocket (OOP) payments and low R&D expenditure are likely to restrain market growth.

The Russian pharmaceutical market comprises two business segments: the commercial market and the government procurement market. The commercial market dominates, accounting for 73 % of overall value and 85 % of volume. However domestic products only accounted for 6.05 billion dollars, or 28 %, of the commercial market in 2015.

The Russian Government’s ‘Pharma Strategy 2020’ is aimed at boosting domestic production of pharmaceutical and medical device products .Consequently several multinational pharma giants such as Novartis, Takeda, Teva, Novo Nordisk and Astra Zeneca have established their manufacturing facilities in Russia since 2011, and Glaxo Smith Kline, Pfizer and Bayer have signed partnership agreements with domestic manufacturers.

The government has also implemented a policy of import substitution in more than 20 sectors including pharma. This aims to gradually reduce the importation of foreign-made industrial products and replace them with domestically produced alternatives targeting a 50–100 % reduction by 2020.

Prescription drugs dominate the pharmaceutical market, accounting for 59 % of sales in 2015, worth 17.80 billion dollars, OTC drugs accounted for 36 %, worth 10.64 billion dollars and food supplements 5 %, worth 1.38 billion dollars.

(ID:45085162)