RUSSIA TO JOIN TOP 10 GLOBAL PHARMACEUTICAL MARKETS IN 2008

21.08.2008

According to market research published today by DSM Group, one Russia’s leading market research agencies, the Russian pharmaceutical market is expected to grow over 30% (in US dollar terms) in 2008 compared to 2007. DSM Group expects the overall market volume to reach approximately US$18.4 billion, considerably higher than the US$14.3 billion seen in 2007.

These projected results for 2008, based on the market performance in the first half of 2008, would mean that Russia would join the top ten pharmaceutical markets in the world. DSM Group considers the key driver behind the buoyant growth to be the increasing living standards of the population.

The Russian pharmaceutical market comprises the commercial drug segment, parapharmaceutical segment and the state-owned drug segment.

The Russian commercial drug segment is showing impressive growth this year. While growth rates in the previous year amounted to 15–20%, in the first half of 2008 the commercial pharmaceutical market surged by 30% year-on-year to US$4.55 billion. Increased drug prices were the main contributor to the increase.

The parapharmaceutical market is catching up as well, although growth rate in the sector has slowed down somewhat and is comparable to the overall pharmacy market in 2008. In the first half of 2008, the sector grew by 32%. Pharmacy sales reached US$1.75 billion, with the share of non-medicinal product mix in pharmacy sales rising to 28%.

The state-owned drug segment has been the fastest growing in 2008. Market volume in the first half of 2008 has reached US$2.51 billion, 43% higher than in H1 2007. The reason for this growth was predominantly increased government financing of the Federal Reimbursement Program (FRP).

 

The full report on the Russian pharmaceutical market is available:

Russian Pharmaceutical Market: Overview and Key Trends ( *.pdf file 706.56 Kb )

 

For additional information, please contact:

solga@dsm.ru
+7 903 287 32 69 – Olga Sidorenkova, Press Service, DSM Group

avk@dsm.ru
+7 903 968 92 08 – Alexander Kuzin, Director General, DSM Group