Market Report, "Russia Pharmaceuticals & Healthcare Report Q4 2010", published

Oct. 9, 2010 - PRLog -- 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 governments 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 governments 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 countrys compulsory health insurance law appear to strengthen consumer rights and choice under the system.

Another key pillar of the Russian governments 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.

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Report Table of Contents:

Executive Summary
SWOT Analysis
- Russia Pharmaceuticals And Healthcare Industry SWOT
- Russia Political SWOT
- Russia Economic SWOT
- Russia Business Environment SWOT
Pharmaceutical Business Environment Ratings
- Table: Central And Eastern Europe Business Environment Ratings, Q310
- Rewards
- Risks
Russia - Market Summary
Regulatory Regime
- Intellectual Property Environment
- Pricing And Reimbursement Issues
Industry Developments
Industry Forecast Scenario
- Overall Market Forecast
- Key Growth Factors - Industry
- Key Growth Factors - Macroeconomic Forecast
- Table: Russia - Economic Activity
- Prescription Market Forecast
- Generic Drug Market Forecast
- OTC Medicine Market Forecast
- Pharmaceutical Trade Forecast
- Medical Device Market Forecast
- Key Risks To BMI's Forecast Scenario
Competitive Landscape
- Manufacturing Sector
- Wholesale Sector
- Retail Sector
Company Profiles
- Berlin-Chemie/Menarini Pharma GmbH
- Gedeon Richter
- Krka
- Lek (Novartis/Sandoz)
- Stada AG (Stada CIS)
- Veropharm
- Pharmstandard
Country Snapshot: Russia Demographic Data
- Section 1: Population
- Table: Demographic Indicators, 2005-2030
- Table: Rural/Urban Breakdown, 2005-2030
- Section 2: Education And Healthcare
- Table: Education, 2002-2005
- Table: Vital Statistics, 2005-2030
- Section 3: Labour Market And Spending Power
- Table: Employment Indicators, 2001-2006
- Table: Consumer Expenditure, 2000-2012 (US$)
- Table: Average Annual Wages, 2000-2006
BMI Methodology
- How We Generate Our Pharmaceutical Industry Forecasts
- Pharmaceuticals Business Environment Ratings
- Risk/Reward Ratings Methodology
- Ratings Overview
- Table: Pharmaceutical Business Environment Indicators
- Weighting
- Table: Weighting Of Components
- Sources
Forecast Tables

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Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.