GlobalData Plc

Russia’s pharmaceutical market is one of the fastest growing in the world and is expected to reach $36.61 billion by 2021, according to GlobalData, a recognized leader in providing business information and analytics.

The company’s latest report: ‘CountryFocus: 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, or 28%, of the commercial market in 2015.

Sharath Chandra, Healthcare Analyst at GlobalData, commented: ‘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 AstraZeneca have established their manufacturing facilities in Russia since 2011, and GlaxoSmithKline, 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, OTC drugs accounted for 36%, worth $10.64 billion and food supplements 5%, worth $1.38 billion.

In August 2017, the Russian State Corporation (Rostec) and local pharmaceutical manufacturing company Marathon group announced a merger. The new company will focus on building a national pharmaceutical distributorship together with developing and manufacturing innovative new domestic medicinal products. Marathon Group produces around 350 drugs and medical products while Rostec Natsimbio produces vaccines against TB and viral hepatitis.

The medical device market in Russia was valued at $6.7 billion in 2016 and is forecast to reach $8.5 billion in 2021.The key driver of growth is an aging population and consequent demand for healthcare products and services. Major segments likely to experience high growth are ophthalmic devices, wound care management, cardiovascular devices, orthopedic devices and diagnostic imaging.

The government has also introduced the Comprehensive Program for the Development of Biotechnology in the Russian Federation through to 2020. The program 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 biogenerics by 2020, with an investment of $265.3m.

Sharath continued: ‘Biotechnology serves as a key driver for growth in the pharmaceutical industry by introducing new and improved products and innovative technologies, adding revenue streams, improving the quality of life of patients and extending patient life.’

With a growing pharmaceutical market, there is a wide opportunity for the development of biosimilars. Since 2014, 20 erythropoietin biosimilars, 53 interferons biosimilars, 42 monoclonal antibodies biosimilars, 61 insulin biosimilars, 11 somatropins biosimilars, 24 granulocyte-colony stimulating factor biosimilars, 55 heparins biosimilars, 31 plasma coagulation factor biosimilars and 9 r-coagulation factor biosimilars have been granted market authorization.
The Ministry of Health is the regulatory body responsible for the reimbursement process in Russia. In 2016 the Federal Compulsory Medical Insurance Fund, estimated that 53 insurance companies covered the entire population.

Sharath added: ‘’The government has initiated several reimbursement programs to provide better healthcare in the country. Public funding for drugs is operated through programs including: Vital and Essential Drugs (VED), Seven rare expensive diseases/ Seven Nosologies Program (VZN) and Essential Drug Reimbursement Program (ONLS).’’

Information based on the GlobalData report: ‘Country Focus: Healthcare, Regulatory and Reimbursement Landscape – Russia’

Related Intelligence

Want more Insight like this?

Our interactive subscription platform has the most comprehensive data and analysis in your industry.

Request a Demo

Related Consulting

How can we help your business?

Our consultants are skilled in every specialist market niche to deliver solutions specifically designed for your individual requirements.

Request a Callback

    Press Release Healthcare

    Late-stage CKD-induced comorbidity therapeutics market to reach $10.5bn by 2026

    Sales for chronic kidney disease (CKD)-induced hyperparathyroidism (HPT), hyperphosphatemia (HP), and hyperkalemia (HK) therapeutics were estimated to be $4.2bn across the seven major markets (7MM*) in 2016. This is expected to grow to $10.5bn in 2026, at a Compound Annual Growth Rate (CAGR) of 9.5%, according to GlobalData, a leading data and analytics company.

    Press Release Healthcare

    Majority of oncology clinical trials in China failed to meet enrolment targets

    The majority of oncology clinical trials in China that had a start date between 1 January 2012 and 31 December 2017 failed to meet the planned enrolment targets, according to GlobalData, a leading data and analytics company. The company identified and analyzed enrollment efficiencies of 324 clinical trials during the period and found that on...

    Press Release Healthcare

    Need for supportive care in oncology will increase during the next decade

    The need for effective supportive care in oncology will increase in the next decade as patients continue to live longer and cancer progresses to become more like a chronic disease. This includes the need for chemotherapy-related conditions, as chemotherapy will remain the backbone of cancer therapy for the foreseeable future, observes GlobalData, a leading data and analytics company.

    Press Release Healthcare

    World Cancer Day: What will 2018 mean for cancer research and treatment?

    The theme of this year’s World Cancer Day held on 4th February of “We can. I can.” aimed to reinforce the public message that all individuals and groups can play their part in reducing the global burden of cancer. Indeed in recent years many events have involved collaborations between traditional drug developers, cancer treatment professionals and those of varying disciplines. Examples include the IBM Watson supercomputer which is helping physicians make treatment decisions and the development of other databases such as ASCO’s CancerLinQ which assists oncologists in monitoring and analyzing patient data.

    Press Release Healthcare

    Melanoma sales are projected to rise to $5.5bn in 2026

    The value of the melanoma market was estimated to be $3.3bn across the seven major markets (7MM*) in 2016. This is expected to grow to $5.5bn in 2026, at a Compound Annual Growth Rate (CAGR) of 5.3%, according to GlobalData, a leading data and analytics company.

Media Enquiries

If you are a member of the press or media and require any further information, please get in touch, as we’re very happy to help.

Emailpr@globaldata.com
PhoneEMEA: +44 207 832 4399
PhoneAPAC: +91 40 6616 6809
Onlinecontact online

56% of #consumers are concerned about the impact of diet. Join us for more insight @incosmetics #cosmetics #trends… https://t.co/wJOJOqYIJF