Analytic review by DSM Group: Russian pharmaceutical market 2010
01.06.2011
In 2010, the state played a leading role on the market: the number of legislative initiatives
was unprecedented. This makes the market more open and ordered.
In 2010, the financial indicators of pharmaceutical market were affected both by the consequence
of the crisis, and by government regulation. In 2010, the pharmaceutical market volume
has amounted to 667 billion rubles (including VAT) in end user prices, which is only 6% higher than
that in 2009.
The Russian pharmaceutical market is import oriented. 78% of drugs in money terms consumed
by the population, are produced abroad. Therefore, the ranking of manufacturers is predominantly
occupied by foreign companies: SANOFI-AVENTIS, NOVARTIS. The second line is occupied
by PHARMSTANDART — the only domestic manufacturer in the TOP-20 of leading players in the Russian
pharmaceutical market.
The major players in the commodity distribution network on the pharmaceutical market are
the distributors. This is due to the geographic specifics of the country — its large area. According
to the results of 2010, the leaders in the distribution segment are CV Protek and SIA International.
Their joint market share amounts to 37%. Specialized distributors (R-PHARM, Pulse) are growing
rapidly.
Pharmacy segment of the Russian market is represented by the huge number of participants.
The largest networks are “36.6”, “Rigla”, “Implozia” — their total share reaches 7%. In 2010,
the pharmacy networks divided into 2 groups: those who continued business optimization (36.6,
Pharmacor, Doctor Stoletov), and those who made investments in expanding the quantitative composition
of the network (Rigla, A5, Melodiya Zdorovya).
In 2010, commercial segment of the Russian market shows low growth rate (+6%). Due to
strict governmental control over vital drug inflation, the market has lost one of its main drivers:
increase in drug prices in the commercial segment was minimal +1%, whereas in 30% of products
(vital drugs) the prices have fallen by 4%. Growth of consumption in kind by + 3% may be considered
a positive factor. In 2010 the sales volume in commercial segment amounted to about 406
billion rubles (13.4 billion dollars). This is only by 6% more than in 2009.
In 2011, the parapharmaceutical segment will be very important for the pharmacy. During
the period of strict regulation of drug prices this part of the range becomes a source of additional
income. In 2010, the capacity of this segment was more than 118 billion rubles, which is
only by 2% higher than in 2009.
The state sector (hospital purchases, essential drug reimbursement program and 7 nosologies)
in 2010 shows a growth rate of 7%. This is one of the most stable segments of the pharmaceutical
market, since its development depends on budget money. The state fully complies with its
obligations, and indexes the program of additional drug supply on the annual basis.
In 2010, 88.4 billion rubles were allocated in the budget for purchasing drugs for beneficiaries.
Drug supply volume to the regions amounted to 80.8 billion rubles. Thus, in 2010, 7.6 billion
rubles was saved that makes 9.4% of the budget. In 2010, the average beneficiary drug cost
increased by 11% and amounted to 840 rubles.
The segment of hospital purchases increased by 9% compared to 2009, and its volume was
66 billion rubles.
Drug import volume in Russia in 2010 amounted to 11.8 billion dollars, which is 28% higher
than that in 2009.
According the DSM Group forecast the Russian pharmaceutical market will grow in 2011
by 12% in rubles and will reach about 750 billion rubles.
The full report on the Russian pharmaceutical market is available:
Russian Pharmaceutical Market 2010 ( *.pdf file 353 Kb )
