Life Sciences Opportunities

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

Posted on: 27 Nov 2011

Pharmaceuticals and medical devices markets are heavily reliant on imports 78% of drugs (in money terms) consumed by the population are produced abroad. Drug import volume in 2010 amounted to USD 11.8 billion, which is 28% higher than that in 2009.

Sector briefing Life Sciences Opportunities in Russia Why Russia? Headline Expenditure Projections (by BMI) Pharmaceuticals: $17.92bn in 2010 to $20.09bn in 2011 (+12.1%) Healthcare: $76.51bn in 2010 to $86.57bn in 2011 (+13.1%) Medical devices: $5.16bn in 2010 to $5.945bn in 2011 (+15.2%) Russia is the largest pharmaceutical market in Central and Eastern Europe. Due to its population size (141 million) Russia overview of Russia?s economy, business accounts for just under a third of the total culture, potential opportunities and an Central and Eastern European pharmaceutical introduction to other relevant issues. market. Pharmaceuticals and medical devices markets are heavily reliant on imports 78% of drugs (in money terms) consumed by the population are produced abroad. Drug ?Russia is the largest import volume in 2010 amounted to USD 11.8 billion, which is 28% higher than that in 2009. pharmaceutical market in Central and Eastern Europe.? Find general information on the Russian market conditions on UKTI?s website. [insert link to country landing page]. The Doing Business Guide for Russia [link to country Business Guide ? to be added by web team] gives an UK Trade & Investment Sector briefing: Life Sciences Opportunities in Russia opportunities for UK providers of GMP Opportunities compliant technology and equipment. Opportunities for UK companies ? key areas Pharma projects worth $1.4bn are are defined below: currently implemented in Russia Sales of branded generics going up Pharmaceutical projects worth RUR40bn ($1.4bn, or ?980mn) are currently Over the last decade there has been a shift in implemented in Russia, according to the demand from cheap locally produced generics Russian Industry and Trade Minister Viktor to more expensive branded generics of foreign Khristenko. origin. Branded generics account for 47% of sales in value terms. UK companies in Russia Clear drug registration procedure has GlaxoSmithKline occupies 1.8% of the Russian been formulated pharmaceutical market, with sales volume $258.9 million in 2010. A new law ?On the medicinal products circulation? has taken effect on September 1, Swedish?British pharmaceutical company 2010. It states that the registration of AstraZeneca is occupies 1.6% of the Russian medicines cannot take longer than 210 days. market, with sales volume $223.8 million in For generic drugs it is up to 60 days. A single 2010. In April 2011 AstraZeneca started state registration fee is charged: 30,000-ruble construction of a new plant in Kaluga region fee for assessments required for a 20-year with total investment over $150 million. The permit to use pharmaceuticals in Russia, and a plant is scheduled to start production in sthe 225,000-ruble fee for assessments needed to spring of 2013. AstraZeneca is also planning to register drugs that have been tested abroad invest $1.2 billion over the next 5 years in (£1 equals approx. 45 rubles). The registration costruction of R&D centre in St Petersburg. process became more transparent ? information about the process is available on- If you have any questions on the opportunities line. above, contact the UKTI contacts named in this report. Business opportunities aimed Signs of improvement in IP protection specifically at UK companies are added daily to UKTI?s website. These leads are sourced by our In March 2011, Russia's Ministry of Healthcare staff overseas in British Embassies, High and Social Development signed a collaboration Commissions and Consulates, across all sectors agreement with Rospatent, the main objective and in over 100 markets. of which is to raise the efficiency of IP protection within the country. The Health You can be alerted to business opportunities on Ministry took control of the registration of a regular basis by registering on the UKTI medicines from Russia's Federal Service on website. Find out more on UKTI?s business Surveillance in Healthcare and Social opportunities service on the UKTI website Development (Roszdravnadzor) in September 2010 and is now responsible for handling confidential information, including data on pre- clinical and clinical studies. GMP Standards Introduction Russian pharmaceutical producers will have to switch to Good Manufacturing Practice (GMP) standards starting from January 1, 2014. If producers fail to comply with GMP standards by the deadline their licenses will be cancelled. Presently only about 10% of 400 licensed companies in Russia produce medicines in compliance with GMP standards. This opens UK Trade & Investment Sector briefing: Life Sciences Opportunities in Russia 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: Life Sciences Opportunities in Russia
Posted: 27 November 2011

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