Analytic review by DSM Group: Russian pharmaceutical market in the 1st half of 2007.

Dear colleagues!

Well, we can say we have new state of things on the market again. In 2005–2006 the Russian pharmaceutical business mostly developed due to DLO; however at the beginning of 2007 the situation has changed. At the end of 2006 the burst of budget expenses for drugs was replaced by strict economy, so in 2007 the market has not grew due to state money. Commercial segment has been dominating again; it increased by 18% in the 1st half of 2007.

Besides, we have second however less important fact telling us that new era started. A long-standing leader of the Russian market, for many years entering TOP lists, the unique medication “Crataegus” not only left TOP-5 but even hardly stayed in TOP-20. The leader of the rating is medication indeed. At that produced by a Russian manufacturer. And recently launched for the market. We really see that promotion of drugs can gain profit on the Russian market as well.

Good luck with your business!

Alexander Kuzin
General Director of DSM Group