In a survey of 52 Russian and foreign generic and original drug manufacturers operating in Russia and internationally, including distributors of pharmaceuticals, data indicated that while the Russian pharmaceutical market is on the rise, there is a simultaneous decrease of growth in production. Digitalization, online drug stores, electronic patient documents, telehealth and other factors are influencing Russian pharma companies to focus more on modernized strategies to find their footing in the changing market landscape.

In 2017, the Russian pharmaceutical market as a whole grew 7.9% in ruble terms and 24% in US dollar terms, due to a stronger average weighted ruble/US dollar exchange rate. Russian pharmaceutical output rose 3.2% to RUB 295 billion ($4.4 billion), ranking it 14^th globally in terms of pharmaceutical market size. Imports also increased 21.6% in 2017, while exports grew 14.6%. Nearly 80% of imports were from Europe, specifically Germany at 21%, France at 9% and Italy at 6%.

Patients continued a trend of purchasing less expensive generic drugs, which accounted for 65% of sales, with locally produced drugs representing 72% of those sales. Total public and private investments in the industry were more than RUB 150 billion ($2.2 billion).

According to half of survey respondents, substantial changes in the market are not likely in 2018. Sixty percent of respondents expect revenues to expand in 2018 at an average growth rate of 10%, while 48% of respondents predict operating costs will increase 7%. Approximately one third of companies surveyed forecast a 10% rise in capital expenditure in 2018, and 27% plan to boost their staff by an average of 8%.

Source: Deloitte