Development Trends and Practical Aspects of the Russian Pharmaceutical Industry – 2015

Analysis

Development Trends and Practical Aspects of the Russian Pharmaceuti­cal Industry—2015

Survey results

Since the end of 2014, the Russian pharmaceutical industry has been affected by the overall economic situation in the country (devaluation of the national currency, economic slowdown and decreasing purchasing power of the population etc.) and the global geopolitical situation (sanctions imposed against Russia, etc.).

All the above has translated into the necessity for government action including adjustments to certain legislative provisions (for example, with respect to the regulation of prices for vital and essential drugs) and the actual implementation of the previously announced policy aimed at import substitution to meet state and local needs (for example, in February 2015 the Government adopted a resolution on restrictions for certain medical devices, and a corresponding draft resolution concerning medicines has been submitted to the government for consideration). 

Despite the current state of the Russian economy and key drags on market development (flaws in industry regulation and insufficient governmental funding in certain areas), the majority of industry players are still optimistic about the growth potential of the Russian pharmaceutical industry. This optimism is proven by the actions of businesses aimed at the construction of manufacturing facilities in Russia and establishment of alliances between foreign and Russian companies.

However, economic factors may affect the plans of foreign companies that are considering production localization with respect to the method of localization and timing. Companies that already have localization projects underway may have to increase the processing depth in Russia (depending on how the government establishes the criteria for defining the local product) in order to be able to participate in public procurement.

In this third edition of Deloitte's annual survey of the Russian pharmaceutical industry, respondents share their opinions on various aspects of the pharmaceutical industry: effects of legislative changes, main issues faced by the pharmaceutical industry, expectations and strategic business development trends. Furthermore, we analyzed the change in the opinions of market participants with respect to the key issues concerning the Russian pharmaceutical market over the past two years.

Over 70 respondents representing 50 Russian and foreign manufacturers of original medicines and generics in Russia and abroad, and pharmaceutical distributors participated in the survey. We would like to thank all respondents for providing their expert opinions on the current development of the pharmaceutical market and prospects for its growth in Russia over the next few years.

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