The new analysis ‘Strategic Analysis of Russian Pharmaceutical Market’ found that the market will reach $37.15bn in 2016.
The Russian government initiative 2020 Pharmaceutical Development Programme (Pharma 2020) aims at strengthening domestic manufacturers of pharmaceuticals. It seeks to ensure that by 2020, at least 50% of pharmaceuticals (in value terms) circulated in Russia will be of domestic origin.
Introduced in September 2010, Federal Law # 61, ‘About Circulation of Medicines’, simplifies the circulation of drugs and makes authorisation procedures faster and more transparent.
Moreover, implementation of pharmaceutical insurance has been planned as a part of the 2020 Healthcare Development Programme.
Frost & Sullivan research analyst Dominika Grzywinska said the Russian state’s policy of improving the demographic situation in the country and providing adequate healthcare services to its population is projected to be one of the main pillars for the expansion of the pharmaceutical market.
"Multiple initiatives undertaken by the government, aim at enhancing pharmaceutical provision in Russia. Through amending the law and declaring its support for the domestic industry, the Russian government appears to be a guarantor of pharmaceutical market growth," Grzywinska said.
However, uncertainty in the legislative environment, resulting from multiple changes in pharmaceutical law, could potentially restrain growth of the Russian pharmaceutical market during the short term, accoridng to Frost & Sullivan.
Grzywinska said Russian legislation in regards to pharmaceuticals has witnessed numerous changes in recent years with the government working on multiple legislative transformations, including ZLVLS List, GMP introduction and Pharma 2020, among others.
"Although new legislation should not necessarily restrain the market development but rather bring clarity and coherence, the expectation process per se is likely to stretch through 2010 and early 2011, temporarily restraining the market’s development," Grzywinska said.
"Companies which decide to establish production facilities in Russia can count on government support and preferential treatment. Nevertheless, companies need to closely observe the changes to assess their impact on potential growth opportunities."