According to DSM Group’s data pharmacy sales volume of drugs by 18.2% increased in the 1st half of 2007 compared to that of 2006, and amounted to $3.4 billion in retail prices.
However, as DSM Group predicts the whole drugs market (including commercial, hospital and DLO segments) will increase only by 10–12% in 2007 (which is far less than 35% growth in 2006), and will exceed $11 billion. The key reason of smaller growth is DLO segment decreasing, which cannot be made up for by pharmacy sales growth.
The leading drugs manufacturers on the commercial market in the 1st halves of 2007 and 2006 are shown in Table 1.
Table 1. Rating of drug manufacturers by pharmacy sales volume in the 1st half of 2007.
Foreign companies became obvious rating changers.
Pharmstandard increased its sales by 67% and moved from 5th to 2nd position. Two its brands entered TOP-10 of the market: Arbidol is the 1st one and Pentalgin is the 10th one.
Otecestvennye Lekarstva increased more — by 73%. Due to this fact the company entered TOP-20 of the market.
Lek DD is quite an aggressive company with its growth of 35%. Its success is determined by Linex growth, which increased in sales by 61% and moved from 17th to 7th position in TOP of the brands.
Nycomed showed 31% growth. Its brand Concor increased by 60% in sales ($16.4 mln in the 1st half of 2007), and entered TOP-20 of the commercial market.
Nycomed is also an active player of nutritional supplements (NS) market. It is the 4th among leading NS manufacturers with its growth of 67% within that market segment. Gerimax is the most popular NS brand produced by Nycomed. Gerimax sales amounted to $5.4 mln in the 1st half of 2007 which is twice as more than the year before.
Bayer Shering Pharma AG (created in 2007 as a result of Bayer AG and Shering AG merging) placed at 11th position of the TOP. Shering AG with its market share of 1.7% was 13th in TOP by pharmacy sales. Bayer AG was only in 6th ten with its share of 0.5%. Total share let the amalgamated company rise by 2 positions.
Boehringer Ingelheim was the most active in 2nd ten of the TOP. It increased by 58% due to almost double growth of its leading brands Movalis and Lazolvan.
Pfizer and Servier increased by 11% and by 12% correspondingly, but that was insufficient. At the market growth of 18% these companies start to lose their shares in Russia.
There were also some changes among leading drug brands.
Table 2. Rating of drug brands by pharmacy sales volume in the 1st half of 2007.
Three Russian companies are among manufacturers of the most popular drugs; the are Pharmstandard, Farmasoft and Materia Medica. Except for Arbidol and Pentalgin (both produced by Pharmstandard), Mexidol (by Farmasoft) and Anaferon (by Materoa Medica) also entered TOP-20. This was due to their good consuming properties and aggressive marketing politics.
Crataegus for the first time for many years has left its leading positions. Its sales decreased by 40% (from $26,7 mln to $15,7 mln), and it moved from the 4th place in rating to the 20th one.
Cayenne also moved down from 13th to 28th position. Uts sales volume decreased by 8%, from $15,6 mln to $14,3 mln. This was a result of the state efforts in reducing of sales of alcohol medications through pharmacies; and also of the work of law machinery in revealing of illegal manufacture of this medication. By the way, since January 1, 2007 maximum volume of bottle with Crataegus has been only 25 ml (before the mot popular dosage was 100 ml).
Drug import volume in Russia decreased by 17% in the 1st half of 2007 compared to that of 2006. Total import supply amounted to $2.26 billion ($2.95 billion in the 1st half of 2006). This has been the first great decline since the crisis of 1998.
The main reason of this fall is uncertainty of payments for imported drugs supplied in 2006 within DLO program. Both foreign manufacturers and domestic distributors could correct sales forecasts in Russia. Besides, huge stocks existed in logistic chain of DLO program during 2006. These two facts led to drug import decline in 2007.
Maximum import decreased was observed for Servier (- 27%), GSK (-33%) and Solvay (-29%).
The budget for the DLO program in 2007 was 34.9 billion rubles ($1.4 billion). According to Roszdravnadzor data, in the 1st half of 2007, there were drugs supplied at the sum of more than 21 billion rubles ($840 mln) which is 50% of the budget 2007.
This year payments are exercised according to the federal budget, but drugs delivery in pharmacies goes faster. We estimate that the volume of drugs supplied by the end of 2007 will nave been amounted to 50 billion rubles ($2 billion). So, we can face the debt of 15 billion rubles ($600 mln).
By now the debt of 2006 of more than 20 billion rubles ($800 mln) is not still discharged. Total sum of the debt of 2006+2007 can amount to about 40 billion rubles (1.6 billion).
Normative documents describing the procedure and allowing fully discharge the debts of 2006 do not still exist. However, additional budget money and OMIF (Federal Obligatory Medical Insurance Fund) funds can fully cover the deficit of 2006 and 2007.
For more information please turn to Olga Sidorenkova: (495) 780–72–63 ext. 30–55
