|
|
 |
|
Viewing report
|
|
|
|
Russia Pharmaceuticals and Healthcare Report Q4 2010
Business Monitor International, Sep 2010, Pages: 93
Business Monitor International's Russia Pharmaceuticals and Healthcare Report provides industry professionals and strategists, corporate analysts, pharmaceutical associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on Russia's pharmaceuticals and healthcare industry.
BMI continues to see a strong US dollar recovery in the Russian pharmaceutical market and we expect the industry to deliver 22.3% US dollar growth in 2010. This growth will be magnified over the full year by the appreciation of the rouble in relation to the dollar on the back of a slow but gathering economic recovery and higher average oil prices for the year. BMI is currently forecasting that the Russian market will deliver a fiveyear compound annual growth rate (CAGR) of 17.56% in US dollar terms between 2009 and 2014, with the total market value more than doubling, from RUB488.1bn (US$15.4bn) to RUB872.2bn (US$34.5bn) by the end of this forecast period.
The next five years will be the true test of the Russian government’s aggressive moves to modernise the domestic pharmaceutical industry and wean the country off it dependency on imports for 75% of medicines consumed. In June 2010, the Ministry of Industry and Trade said it was committed to investing up to RUR120bn (US$3.8bn) in the domestic pharmaceutical industry in the form of production facilities and research and development (R&D) efforts, with the funds coming from the budget for Federal Target Programmes. In addition, the Ministry of Industry Trade said it was looking at options to establish a separate fund within the framework of the Russian Venture Company to direct foreign investment to the pharmaceutical industry.
Beyond funding, the government’s intervention in the sector is quite extensive, down to the types of drugs it wants private local players to make – a degree of involvement in the sector not seen since Soviet times. In August 2010, the government published a list of 57 ’strategically important’ medicines that it wants to be manufactured in the country from 2015. The country has abandoned its historical laissez faire attitude toward pricing, with the regulator completing the registration of maximum prices of thousands of drugs during Q110. The regulator claims that the measure has already delivered savings. More positively, amendments to the country’s compulsory health insurance law appear to strengthen consumer rights and choice under the system. Another key pillar of the Russian government’s plan for the development of the industry is attracting significant direct investment from multinationals in manufacturing facilities. Announcements since early 2010 should boost the morale of officials – including reported plans by Teva to build a plant, initially for packaging. Novo Nordisk has said that it is building an insulin plant worth up to US$100mn. Swiss Nycomed is developing a US$80mn site in Yaroslavl and has teamed up with GE Healthcare to sell reagents for medical imaging. Market leader Sanofi-Aventis has already acquired 74% of insulin maker Bioton Wostok. The biggest question mark among multinationals is Novartis, whose CEO has yet to commit on long-running rumours that the company would take the plunge and invest in production facilities in the country. Meanwhile, local players are looking to capitalise on a resurgent marketplace. Following distributor Protek’s US$400mn IPO in May, domestic player Pharm-Sintez indicated that it was planning a local IPO by the end of 2010.
Product samples
A sample for this product is available. Please Login/Register to download this sample.
Customers who bought this item also bought
Russia Pharmaceuticals and Healthcare Report Q2 2011
Russia Pharmaceuticals and Healthcare Report Q1 2011
Russia Pharmaceuticals and Healthcare Report Q2 2010
Russia Pharmaceuticals and Healthcare Report Q1 2010
Kazakhstan Pharmaceuticals and Healthcare Report Q1 2011
Kazakhstan Pharmaceuticals and Healthcare Report Q1 2012
Serbia Pharmaceuticals and Healthcare Report Q1 2011
Russia Pharmaceuticals and Healthcare Report Q4 2009
Ukraine Pharmaceuticals and Healthcare Report Q1 2011
United Arab Emirates Pharmaceuticals and Healthcare Report Q1 2011
|
|
|
|
