Pharmaceutical industry in Russia: investment opportunities, import substitution
Russia is the perfect place for manufacturers of medical products. Foreign companies gladly import medicines and ingredients. Local companies produce pills and generic medicines. In the context of import substitution Russia forces foreign manufacturers to localization. New medicine plants are either already planned or in construction phase, which gives good sales opportunities to manufacturers of production facilities, analytical and laboratory technologies.
In the first half of 2017 pharmaceutical companies in Russia have produced 11,2% more medicaments compared to the same period of last year. Back in 2016 this value increased by 15,5% over the same period of the previous year.
The total number of produced pharmaceuticals amounted to 4,3 million packages worth 17,5 billion euro.
A lot of German pharmaceutical companies produce in Russia, among them are Bayer, Merck, Boehringer Ingelheim, Berlin-Chemie (Menarini) and Stada.
Russia focuses on localization
Import of medical products to Russia grew in 2016 by 8,7% to 6,7 billion euro.
The import rate amounted to 90%. As part of the strategy for development of Russian pharmaceutical market the government plans to reduce the dependency on import production.
Russian government tries to motivate foreign pharmaceutical companies to localize their production.
Direct investments with transfer of technology and know-how will be rewarded with access to government procurement.
Beginning from the 1st of January pharmaceuticals, which have been only packed (blister packaging) in the territory of EAEU, won’t count anymore as products, manufactured in the Union.
They wont be considered at public tenders anymore, if at least 2 EAEU suppliers have submitted their offers.