Russia Market Overview

The Russian pharmaceutical market is estimated to see annual growth of 11–13% in the next few years*. In 2010, the growth of the Russian pharmaceutical market was significantly slower than the long-term growth outlook. Growth was slowed by fierce price competition and the price control system introduced on 1 April 2010. Consumers became more price conscious during 2010, and increasingly started using local, inexpensive products in favour of Western products.

At the end of 2010, the price control system covered approximately 30% of all essential medicines. Under this system, a maximum level is set for pharmaceuticals’ producer prices and import prices, and regional authorities are responsible for determining and monitoring this level. This has affected the growth of the Russian pharmaceutical market, as well as pharmaceutical prices and mark-ups.

Competition for market shares was very fierce on the Russian wholesale market in 2010. In the pharmacy business, competition consists mainly of local competition. Competition in the Moscow region has been intensified by the increase in the number of pharmacies. The number of pharmacy chains in Russia remains small, but this number is expected to rise in the future.

The commercial pharmaceutical market accounts for approximately 75 % of the value of the total pharmaceutical market, though pharmaceutical expenditure per capita is much lower in Russia than in Europe. In the pharmaceuticalretail and wholesale markets, Western medicines represent approximately 70% of the value of the Russian pharmaceutical market, while Russian and Eastern products represent approximately 70% of the volume.

*IMS