Russian pharmaceutical sector has been developing appreciably in the last few years and will continue to do so, mainly on the back of state-funded programs.
Russian President Dmitry Medvedev noted that the state-funded programs have led the country's pharmaceutical market to record dynamic growth, reported ITAR TASS on August 31, 2009.
As per the President, the pharmaceutical market in Russia is currently growing at an annual rate of 10-12% on average. Experts estimate that the by 2020, sales of medicines in Russia will reach upto the mark of 1.5 Trillion Rubles (over US$ 47 Billion).
Russian pharmaceuticals market is witnessing rapid growth and the credit largely goes to the state programs as well as the significant investments that are flowing into the sector. It is expected that with this growth, the country will be able to reach upto the average European level of medicine consumption, which is expected to ultimately translate into longer life expectancy and a better quality of life in Russia. Rapid growth in sales of medical equipment is also expected.
In the meantime, research report titled "Russian Pharma Sector Analysis" by a leading research firm RNCOS, states that Russian pharma market is currently more lucrative in comparison of previous years, recording remarkable performance due to the state support.
In the past years, both the retail segment as well as the parapharmaceutical market witnessed double-digit growth in terms of sales value. Particularly, the parapharmaceutical market has recorded the highest growth rate while the contribution of the retail segment has been the maximum in sales value terms, reveals the report.
However, the sector is definitely facing some challenges that are affecting its growth, such as lack of innovation in the pharma sector that largely depends on manufacturing generic drugs. Russian pharma industry is still continuing to produce the same obsolete products and practically nothing is being done to make original medicines and technologies, claimed the experts.
According to a Research Analyst at RNCOS, "Although Russia's pharma sector has good growth prospects, it needs to shift to modernization in order to meet the international norms. The country is required to set up its own capability and resources."
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