Healthcare Opportunities

An Expert's View about Medical, Health and Cosmetics Products in Russia

Posted on: 27 Nov 2011

The National Priority Project Zdorovye (‘health’ in Russian) is a part of the country’s National Development Strategy 2020. Expenditure by Russia's federal budget on supporting healthcare is expected to increase 7% from this year to 500 bn rubles (USD 17,818 bn) according to the Prime Minister Vladimir Putin and in 2012 alone there will be 0,5 trillion rubles (approx. 11 bn) put towards achieving these goals.

Sector briefing Healthcare Opportunities i n Russia Why Russia? The National Priority Project Zdorovye (?health? in Russian) is a part of the country?s National Development Strategy 2020. For the period from 2006 to 2010 the Russian Government allocated and spent 786 bn rubles (approx. USD 27, 550 bn) on this project. For the period 2011-2012, the spend is projected at 618 bn rubles (approx. USD 23,713 bn). Expenditure by Russia's federal budget on supporting healthcare is expected to increase 7% from this year to 500 bn rubles (USD 17,818 bn) according to the Prime Minister Vladimir Putin and in 2012 alone there will be 0,5 trillion rubles (approx. 11 bn) put towards achieving these goals. Some of these funds are Within next 2 years 460 billion to be spent on purchasing innovative medical rubles ($15 billion) will be equipment, ambulances and etc. for hospitals and primary care entities. There are spent to modernise Russia?s opportunities, therefore, for UK manufacturers of healthcare system. hospital equipment (at present, mostly obsolete and needing replacing in many in-patient pharmaceutical, biotechnological and facilities in Russia). nanotechnological research, and looking at cost effective and efficient ways of providing The national healthcare reform aims to improve healthcare services. the quality of medical services and healthcare standards across the country. The government The reform is primarily focused on: claims it is to be achieved by enhancing the ? increasing life expectancy, reducing quality and accessibility of medical services, use disability and mortality; of advanced ICT, state support to new UK Trade & Investment Sector briefing: Healthcare opportunities in Russia ? improving disease prevention and the Russia. There are 5000 private healthcare provision of timely, qualified primary providers in Moscow, the major private healthcare and high-technology medical healthcare clinics are "Meditsina" JSC, On-clinic, assistance; European Medical Centre (and in St Petersburg), ? Improving standards of medical assistance, GMS Clinic, American Medical Cente, Penta-clinic, and likewise of the quality, effectiveness and Eurasia, Guta-clinic, National Medical Centre, safety of medicines. Klinika Sovremennoy Meditisiny, and others. The private medical clinics? chains are "Medsi", The following programmes are currently in place ?Semeyniy Doctor?, ?Poliklinika Tsena- to underpin of the healthcare reform: Kachestvo?, ?Euromedprestige, MosPoliclini.ru, ? Prescreening tuberculosis and oncological Meramed (and in St Petersburg) and others. Its diseases; fighting HIV/AIDS epidemics annual turnover is 50 bn rubles (over USD 1,781 ? Reducing the death rate pertaining to bn) in comparison with municipal healthcare cardiovascular diseases; providers with the annual turnover of 180 bn ? Further development of medical care rubles (over USD 6,414 bn). The quantity of provided for mother and child; increasing patients significantly differs: 8 million people in the birth rate private clinics and 14.5 million patients ? in ? Prevention and control of Noncommunicable municipal clinics. Diseases ? Promoting healthy life style There are a number of private clinics in Saint Petersburg are "Scandinavia", Meditsinskiy Centr Certain difficulties arise in the establishment of Goroda, «Meditsinskiy centr «XXI-???», «Koris an up-to-date healthcare system in Russia. One assistans», «Euromed Clinic?, ??? "Allians of them is the archaic diagnostic equipment of Eurasia Meditsina", «KardioKlinika», Baltzdrav, polyclinics and outpatient departments, which Meditsentr, SM-Clinic and others. cannot mostly afford to purchase expensive foreign diagnostic equipment ? a factor impeding At present Russia imports large amounts of the introduction of new patient examination medical equipment, and only 11% of equipment methods. provided for Russian medical institutions is Russian-made. With a view to improving the diagnostics in the hospitals and polyclinics through providing According to a 2009 survey, 60% of medical affordable and high-quality equipment, the equipment currently used in the Russian medical Russian Government adopted the Federal target institutions had long exceeded its life cycle, and programme "Development of the Pharmaceutical needs urgent upgrades and replacement. and Medical Industry of the Russian Federation Opportunities therefore exist for the UK until 2020? in December 2010. The document manufacturers of medical, laboratory, diagnostic calls for an increase in production by the local and other relevant type equipment. manufacturers of medicines and medical equipment, and it is projected that by 2020, Find general information on the Russian market their domestic market share must reach at least conditions on UKTI?s website. The Doing Business 50%. According to the Minister Khristenko in the Guide for Russia gives an overview of Russia?s next ten years it is planning to invest 188 bn economy, business culture, potential opportunities rubles (USD 6,699 bn) into the programme, and an introduction to other relevant issue. including 122 bn rubles (USD 4,347 bn) from the federal budget. Within a framework of this programme the Russian Government planning to spend approximately 120 bn rubles (USD 4,276 bn) for co-financing projects aimed at localisation of pharmaceutical and medical devices production. All funds mentioned above are being allocated for the healthcare institutions run by State. According to the latest official statistics there are 6,500 state run hospitals and 15,300 out-patient facilities in Russia. The market share of state and private healthcare providers as follows: 99.5% of in-patient medical facilities are run by state and private healthcare out-patient clinics comprise 4% from total number of policlinics in UK Trade & Investment Sector briefing: Healthcare opportunities in Russia industry owned by foreign importers of Opportunities pharmaceuticals and medical equipment, and set up their production facilities in Russia. Russian government outlines spending priorities by 2014 Russia will allocate over USD 5 bn for In 2011 the Russian government announced its children?s healthcare within the next two plans to spend approx. USD 7 bn (more than a years half of the total funds earmarked for healthcare Financing of children?s healthcare will be reform in the next two years) on upgrading increased and appropriations for the purpose healthcare system in the Russian regions. The should be at least 20% of total financing under government will spend a further USD 1,3 bn to the healthcare modernisation programme. For fully upgrade seven major medical research 2011-2012 it is projected to spend 163 bn rubles institutions by 2014 in Moscow, St Petersburg and (USD 5,808 bn) for programme ?Zdorovovye? on Novosibirsk. These are the Scientific Center for development of children?s healthcare. Special Obstetrics, Gynecology and Perinatology attention is to be given to incubation of premature (Moscow), Meshalkin Research Institute of infants 350 million rubles (over USD 12,473 Circulatory Pathology (Novosibirsk), Priorov million has been earmarked solely for this Central Institute of Traumatology and Orthopedy purpose). (Moscow), Research Institute for Transplantology and Artificial Organs (Moscow), Endocrinological Moscow city authorities eyes investment in Research Centre, Federal Center for Heart, Blood healthcare at 1 trillion rubles by 2017 and Endocrinology and Neurosurgical Institute - Early this year Mr Sergey Sobyanin, Mayor of both in St Petersburg. Moscow City, announced the City Administration?s plans to upgrade medical equipment in Moscow in Tenders for government contracts for the 2011 and spend over USD 1,785 bn for development and production of medical purchasing medical equipment, carring out repairs equipment and its components in Russia and upgrades, financing information technology Ministry for Industry and Trade has recently projects and etc. At the meeting with Lord Mayor announced 10 tenders (total cost is 2,189 bn of Financial City in June 2011 he invited foreign rubles) for government contracts for the companies, particularly, British manufacturers to development and production of medical participate in tenders for providing services and equipment and its components locally. In purchasing equipment for projects in transport, particular, 500 million rubles will be spent to set healthcare, public housing and trade. There is also up development and production of basic a positive message from the President taking components for magnetic resonance imaging measures to make public tenders more devices; 25 million rubles (over USD 890 transparent, particularly, for healthcare entities. thousand) - for development and production of high-tech ultrasonic therapeutic devices; 7.5 The healthcare upgrade is a part of major City?s million rubles (over USD 267 thousand) - for Administration healthcare programme for 2012- development of functional requirements and 2016 with a projected funding over USD 39,5 bn. technical characteristics for the laser surgical The program is mainly aimed at increasing the equipment; 15 million rubles (USD 534 thousand) availability and quality of specialized medical care, ? for study of the major trends in foreign markets as well as medical aid to children, teenagers, and pharmaceutical and medical products and 15 pregnant women. million rubles (USD 534 thousand) ? for study of the current state of the Russian medical market Construction of 15 high-tech medical centres and forecast of its prospects in the light of global and development of major medical trends. More details on tenders mentioned above institutions are being carried out are available on the official website for the Funds are currently being provided for the government tenders www.zakupki.gov.ru construction of 15 high-tech medical centres across the country and purchasing of new This is a part of implementation of the Federal equipment for hospitals, vehicles, immunisation target programme "Development of the programs, etc. Particularly, 6 bn rubles (USD 200 Pharmaceutical and Medical Industry of the million) are to be spent for construction of Russian Federation until 2020? aimed at medical facilities focusing on children healthcare organising the manufacturing of modern medical (in total 17), i.e. prenatal centre in St Petersburg, equipment and innovative medicines in Russia. Saransk (Republic of Mordovia) and in Republic of Part of this programme is to localise modern technologies in pharmaceutical and medical UK Trade & Investment Sector briefing: Healthcare opportunities in Russia Dagestan, hospital for children in Voronezh and If you have any questions on the opportunities other Russian regions. above, contact the UKTI] contacts named in this report. Business opportunities aimed specifically 502 Centres of Health opened in Russia at UK companies are added daily to UKTI?s 502 Centres of Health and 211 Centres of website. These leads are sourced by our staff Children?s Health are opened since 2009 across overseas in British Embassies, High Commissions Russia, where patients can receive information, and Consulates, across all sectors and in over 100 doctor?s advice and treatment. This initiative markets. focuses on treatment and prevention of drug You can be alerted to business opportunities on a abuse, obesity, diabetes, tobacco use, chronic regular basis by registering on the UKTI website. alcohol abuse, cardiovascular diseases and cancer Find out more on UKTI?s business opportunities treatment. (official site: www.takzdorovo.ru/) service on the UKTI website E-Healthcare Project This new government funded project with an overall budget of 24 bn rubles (over USD 920.91 million) in 2011-2012, looks at development of telemedicine in Russia, further upgrade of software installed in medical institutions (personal medical file for each patient, personalised datasheet for medical services received by the patient, an appointment with a doctor arranged via Internet and etc), and switching to electronic forms for mandatory medical insurance. Currently, there are over 300 telemedicine centres across Russia, some centres are based in Karelia, Udmurtia, Sverdlovsk and Saratov regions, in particular, such centres are available in the Bakulev Scientific Center of Cardiovascular Surgery, Burdenko Institute of Neurosurgery of Russian Academy of Medical Sciences, Institute of Rheumatology, Russian Academy of Medical Sciences, as well as several hospitals owned by RZhD JSC (Russian railways monopoly). Zero customs duties on some imported medical goods since August 2009 Russian Government Decree N 696 of 21 August 2009 approved zero customs duties on some imported medical goods. The list of these goods to includes equipment for medical and/or surgical studies of internal organs; cameras used in forensic studies; dentist?s drills; and luminescent and amplifying x-ray screens. It falls to the following Chapters of the Russian Customs Code: 8419 39 100 1; 8474 39 100 1; 8474 80 101 0; 9006 30 000 0; 9018 41 000 0; 9018 50 100 0; 9018 50 900 0; 9022 90 100 0. Competition Several UK companies active in medical and healthcare sectors are already present on the Russian market (eg Rosslyn Medical). Main competitors include German, American, Italian, French and Japanese companies. UK Trade & Investment Sector briefing: Healthcare opportunities in Russia 13th International Specialised Exhibition Major events and activities PHARMTECH 2011 05.09.2011-08.09.2011 http://www.pharmtech-expo.ru/en/ Ophthalmologic Optics- 2011 (Moscow) Time: 22-25 November 2011, Moscow Contact: Elena Anisina 6th International Specialized Exhibition Senior Trade and Investment Adviser British Consulate General Ekaterinburg 27.09 - 30.09.2011 Tel: +7 343 253 5605 Mir Detstva - 2011 (Moscow) Email: elena.anisina@fconet.fco.gov.uk 17th International Exhibition. Goods and Services for Outward Trade Mission to the Major Children and Teenagers. New Educational and annual healthcare exhibition in Russia ? Personality Developing Programs ZDRAVOOKHRANENIYE (HEALTHCARE) www.zdravo-expo.ru/en/ 26.09.2011-29.09.2011 Time: 5-9 December 2011, Moscow Dental-Expo ? 2011 (Moscow) Contact: Maria Semchenkova Trade and Investment Adviser Exhibition of Technologies, Equipment and Materials British Embassy Moscow for Dentistry Tel: +7 495 956 7372 Email: maria.semchenkova@fco.gov.uk 05.10.2011-07.10.2011 Hospital ? 2011 (Saint-Petersburg) Find full details of all events in this country and sector on the UKTI website. International Specialized Exhibition on Health New export events are added daily to the site Services and you can register to be alerted to them on a daily, weekly or monthly basis 26.10 - 28.10.2011 EXPOMED - 2011 (Sochi) UKTI?s Tradeshow Access Programme (TAP) 12th Specialized Exhibition of Medical Equipment, provides grant support for eligible Small & Technology and Pharmaceuticals Medium Sized Enterprises (SME's) to attend trade shows overseas. Find out more about 09.11.2010-11.11.2010 UKTI support for attendance at overseas Dental Expo ? 2011 (Saint-Petersburg) events International Dental Forum UKTI contacts 16.11 -19.11.2011 MosExpoDental - 2011 (Moscow) Yana Pavlovskaya Moscow International Dental Exhibition Team Leader, R&D Rich Sectors British Embassy Moscow 22.11 ? 25.11.2011 Tel: +7 495 956 7252 Pharmtech ? 2011 (Moscow) Email: yana.pavlovskaya@fco.gov.uk 13th International Specialised Exhibition www.ukti.gov.uk 06.12.2011-10.12.2011 Elena Anisina Public Health Care ? 2011 (Moscow) Senior Trade and Investment Adviser 21th International Exhibition for "Health Care, Medical Biotechnologies & Pharmaceuticals Engineering and Pharmaceuticals" British Consulate General Ekaterinburg Tel: +7 343 253 5605 Email: elena.anisina@fconet.fco.gov.uk 13.12 - 16.12.2011 www.ukti.gov.uk Ophthalmologic Optics - 2011 (Moscow) 7th International Specialized Exhibition Maria Semchenkova Trade & Investment Adviser British Embassy Moscow Tel: (007 495) 956 73 72 Email: Maria.Semchenkova@fco.gov.uk www.ukti.gov.uk UK Trade & Investment Sector briefing: Healthcare opportunities in Russia Next steps - How UKTI can help ? Arranging appointments British companies wishing to develop their ? Organise seminars or other events for business in the Russian market are advised to you to meet contacts and promote your undertake as much market research and company in the Chinese market planning as possible in the UK. UKTI?s team in Russia, with its wide local knowledge and This work is available via our Overseas Market experience, can provide a range of services to Introduction Service (OMIS) a chargeable British-based companies wishing to grow their service which assists British-based companies business in global markets. wishing to enter or expand their business in overseas markets. This can include: ? Provision of market information To find out more about commissioning this ? Validated lists of agents/distributors work, or accessing other UKTI services and ? Key market players or potential specialist advice, please visit the UKTI website customers in the Chinese market to find contact details for your local UKTI ? Establishment of interest of such office. contacts in working with you Whereas every effort has been made to ensure that the information given in this document is accurate, neither UK Trade & Investment nor its parent Departments (the Department for Business, Innovation & Skills, and the Foreign & Commonwealth Office), accept liability for any errors, omissions or misleading statements, and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned. Published 2011 by UK Trade & Investment. ©Crown Copyright 2011 You may reuse this information (not including logos, images and case studies) free of charge in any format or medium, under the terms of the Open Government Licence. To view this licence, visit www.nationalarchives.gov.uk/doc/open-government- licence/ or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: psi@nationalarchives.gsi.gov.uk. This publication is also available from our website at www.ukti.gov.uk or for more information please telephone +44 (0)20 7215 8000. UK Trade & Investment Sector briefing: Healthcare opportunities in Russia
Posted: 27 November 2011

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