Pharmaceutical industry in Russia
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The pharmaceutical industry in Russia had a turnover of $16.5 billion in 2016, which was equal to 1.3 % of GDP and 19.9% of health spending. The Russian healthcare system is funded by the federal government, social spending and the Federal Compulsory Medical Insurance Fund. However, the industry expects a big shift towards the private healthcare spending. Russia is a net importer of pharmaceuticals, importing $8.9 billion while exporting $635 million of medicines. Close to 80% of imports come from Europe, mostly from Germany and France.


Local market

The Russian pharmaceutical market can be divided by prescription drugs and
over the counter drug Over-the-counter (OTC) drugs are medicines sold directly to a consumer without a requirement for a prescription from a healthcare professional, as opposed to prescription drugs, which may be supplied only to consumers possessing a valid prescr ...
s. The prescription drugs sales historically took the biggest share of the market, capturing 61% of the market in 2016. The sales of
generic drugs A generic drug is a pharmaceutical drug that contains the same chemical substance as a drug that was originally protected by chemical patents. Generic drugs are allowed for sale after the patents on the original drugs expire. Because the active ch ...
dominate in the prescription category at 64.5%. Out of all pharmaceutical sales they constitute only 39.4%. The most widespread diseases in Russia are cardiovascular diseases, cancer and HIV. As a result, pharmaceutical products addressing these ailments are the leading sub-sectors for the pharmaceutical industry in Russia. The largest manufacturers by retail sales include
Sanofi Sanofi S.A. is a French multinational pharmaceutical and healthcare company headquartered in Paris, France. Originally, the corporation was established in 1973 and merged with Synthélabo in 1999 to form Sanofi-Synthélabo. In 2004, Sanofi-Syn ...
,
Bayer Bayer AG (, commonly pronounced ; ) is a German multinational corporation, multinational pharmaceutical and biotechnology company and one of the largest pharmaceutical companies in the world. Headquartered in Leverkusen, Bayer's areas of busi ...
,
Novartis Novartis AG is a Swiss-American multinational pharmaceutical corporation based in Basel, Switzerland and Cambridge, Massachusetts, United States (global research).name="novartis.com">https://www.novartis.com/research-development/research-loc ...
,
Servier Servier Laboratories (French: Laboratoires Servier, often abbreviated to Servier) is an international pharmaceutical company governed by a non-profit foundation, with its headquarters in France (Suresnes). The consolidated turnover for the 2018 ...
.
Pharmstandard JSC Pharmstandard (russian: ПАО "Фармстандарт", PAO "Farmstandart") is a Russian multinational pharmaceutical company. It is headquartered in Dolgoprudny, Moscow Oblast. Pharmstandard's makes and exports over 400 generic and propri ...
is the largest domestic manufacturer by sales, ranking 18th in 2015.


Distributors

Drug manufacturers prefer not to work with retail pharmacy chains or pharmacies directly, relying instead on distributors to promote their products to retail outlets. Distributors operate vast networks of contacts and work to direct retail distribution channels. According to DSM, one of the major Russian pharmaceutical Agencies, the major four distributors include Katren, Protek,
Rosta Rosta may refer to: *Rosta, Iran, a historical district in Isfahan area in Iran *Rosta, Piedmont, a ''comune'' in the province of Turin, Piedmont, Italy **Rosta railway station *Rosta, Republic of Dagestan, a rural locality in Russia * Rosta, Öreb ...
and
CIA The Central Intelligence Agency (CIA ), known informally as the Agency and historically as the Company, is a civilian intelligence agency, foreign intelligence service of the federal government of the United States, officially tasked with gat ...
. The number of pharmacy chains has been growing and currently it exceeds 50,000. Most of the sales are coming from the following chains: , A5, , , and Neopharm.


Import substitution efforts

The Russian government is focused on creating its own pharmaceutical industry. The main document that governs this focus is the “Pharma 2020 Strategy”. Its main goal is to reduce the reliance of the Russian economy on imported pharmaceuticals. In July 2016, Prime Minister Medvedev said that he expects the domestic production to increase from 28.5% now to 75% by 2020.


See also

*
Russian drugs Russian(s) refers to anything related to Russia, including: *Russians (, ''russkiye''), an ethnic group of the East Slavic peoples, primarily living in Russia and neighboring countries *Rossiyane (), Russian language term for all citizens and peo ...


References


External links


Association of the Russian pharmaceutical manufacturersThe UK BioIndustry Association
{{Economy of Russia
Russia Russia (, , ), or the Russian Federation, is a List of transcontinental countries, transcontinental country spanning Eastern Europe and North Asia, Northern Asia. It is the List of countries and dependencies by area, largest country in the ...