RUSSIAN PHARMACEUTICAL MARKET 2006. DSM Group presents the review of the year.

Dear colleagues!

I would like to tell a few words about Russian pharmaceutical market in 2006. The tendency is that the Word of Three Letters gained in great importance.

Firstly, it is of course the magic word DLO. Indeed, pharmaceutical market bounced due to the state force having returned in. The meaningful market volume was achieved in 2006. 12 billion dollars is not just a unique figure for Russia. Russian pharmaceutical market entered TOP 10 national markets in the world with it; so we can expect relative attention from Western companies. On the other hand, Russian doctors get used to prescribe and patients to consume modern innovative medications.

There is also another word — IPO. Russian pharmaceutical market is obviously attractive to foreign investors. On the one hand, state programs influence; they are accustomed to the West where they cover up to 86% of the market finance. On the other hand, the commercial sector is also interesting: people income is growing; “civilized” retail which can deliver wide assortment to the customer is growing either. You don’t still consider IPO working in Russian company? Thus, investors’ money could come to anyone else…

The year 2006 opened new possibilities. The key question of 2007 is to use them.

Good luck to all of you!

Alexander Kuzin
General Director of DSM Group