In an effort to stimulate the economy, cut drug costs and reduce the dependence on imports, Russia has made its pharmaceutical industry a priority for modernization. The Pharma 2020 strategy aims to increase the percentage of medicines made in Russia from 23% to more than 50% over a 10-year period. Based on the strategy, a 10-year investment of $5.84 billion will focus on R&D, training and infrastructure, and good manufacturing practices. The strategy also encourages foreign drug companies to base operations in the country. A group of drug firms has already agreed to invest $1.3 billion. Novo Nordisk and Nycomed are planning new plants in the country. R&D projects include a $160 million investment by Rusnano, a state-owned investment fund, in the ChemRar research center. Challenges for the plan include Russia’s weak health care system and problematic legislation. A new law regulating drug registration, production and prices is expected to trim bureaucracy, but could jeopardize intellectual property protection. The Russian drug market is growing rapidly, with compound annual growth of 15%–16% through 2015, but still lags behind pharmaceutical-market growth in other emerging nations.

Source: The Moscow Times