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Russia’s pharma market to double to $39 bn by 2021

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Implementation of a state programme to improve the healthcare industry has also had a positive impact on domestic production

The pharmaceutical market in Russia is one of the fastest growing globally and is set to rise from $20.91 billion in 2016 to $38.56 billion by 2021, representing a compound annual growth rate of 13 per cent, according to research and consulting firm GlobalData.

The company’s latest report states that key drivers of the Russian healthcare market include improving regulatory guidelines and government initiatives to develop the domestic pharma industry. The Federal Drug Reimbursement Program, for example, provides uniform, free access to over 350 drugs for the most vulnerable social groups of the country.

The implementation of a state programme to improve the healthcare industry by the Russian Ministry of Industry and Trade has also had a positive impact on domestic production. The programme’s main goals are developing domestic medicine production, developing the domestic production of medical devices, and improving state regulations for the circulation of medicines and medical devices. In 2015, the domestic market share of medicine was 27.2 per cent, and the government aims to increase this to 50 per cent by 2020.

A competitive generics market will also drive pharma sales. In 2015, the market share of generics, by value, was 59 per cent of all drugs in Russia. By volume, generic drugs accounted for 85 per cent of marketed drug sales. Russian-based Pharmstandard is one of the leading generic manufacturers in the country, producing and marketing a range of generic and branded pharma, biogenerics, and active pharma ingredients.

For pharma companies hoping to profit from the Russian market in coming years, the country’s increasing focus on biotechnology may provide ample opportunity. In 2012, the government adopted the Comprehensive Program for Development of Biotechnology in the Russian Federation through 2020. The programme sets targets for the development of the biotechnology market and will require $31.8 billion in financing from 2012 to 2020.

The government is planning to construct 10 factories for the manufacturing of biosimilars by 2020, with an additional investment of $265.3 million. Russia is currently developing its biosimilars guidelines. Draft guidelines were prepared in 2014 by the medical and pharmaceutical industries and submitted to the Ministry of Health, and are expected to be enacted this year.

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