From 24 to 26 May 2017 in Innopolis within Cipro...
The pharmaceutical and biotech industry in Russia is undergoing a massive shift in its operating sys
tem. The industry is moving away from its “blockbuster drug” era towards a model that gives preference to personalized medicine. In the last 15 years, the Russian pharmaceutical and biotech industry has experienced stable growth and development. In the year 2007, the Russian pharmaceutical industry was one of the world’s best pharmaceutical industries.
As of 2007, the Russian pharmaceutical market got about 75% of its supplies from imports from countries such as Germany and France. The growth in the wholesale sector of the pharmaceutical industry has led to an increase in licensed medicines. In addition, several Russian pharmaceutical companies are collaborating with renowned foreign pharmaceutical companies.
The biotech companies of Russia are also keen on collaborating with biotechnology companies in foreign countries to develop vaccines, nano-biotechnology and agri-biotechnology.
The commercial drugs market alone comprises of about 50% the overall pharmaceutical market because of reasons such as demand for imported drugs and medicines, increasing spending power of people and an ageing population.
The government of Russia is doing its best to encourage foreign investment in the pharmaceutical industry. The pharmaceutical industry of Russia is set to see tremendous growth thanks to the government support. It has set up a commission to keep an eye on execution of foreign investment in this sector. The French pharmaceutical giant Sanofi-Aventis is opening a production line of insulin pens in the Orel region. The Switzerland based pharmaceutical company Nycomed is making an investment of about 60 million Euros to set up a drug manufacturing unit in Russia.
The government levies heavy tax on foreign pharmaceutical products imported into Russia so that foreign pharmaceutical companies are encouraged to set up units and produce medicinal products in Russia. There has been a growth in the demand of imported drugs in Russia.
The Russian government is developing special bioregions that will offer special incentives to companies that set up units there. The biotech market of Russia has the potential to reach $50 billion by the year 2020. The biotechnology industry is being given top priority in the economic modernization plan of Russia. The government has launched a program called “Biotechnological Development in Russia in 2006-2015” with an aim to set up special economic zones and biotech parks. In addition, the government has developed programs for nano-technology, bio-safety, bio-security, bio-catalysis, systems biology and others.
The development of the Russian pharmaceutical industry is monitored by the Association of Russian Pharmaceutical Manufacturers (APRM). It comprises of the top 16 Russian pharmaceutical companies that account for nearly 50% of the total pharmaceutical production in Russia.
The Russian pharmaceutical industry is set to see tremendous growth in the near future and thus, investing in it is a profitable venture.
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