Analytical Report RUSSIAN Pharmaceutical Market Results of 2013

2013 was the first year of implementation of the government program “Development of Healthcare in the Russian Federation until 2020” and other strategies developed in accordance with the decrees of the President of the Russian Federation. The development path of the country in this field is chosen, and it remains to observe the implementation of programs and evaluate their impact on the pharmaceutical market in Russia.

According to the results of 2013, Russia ranked 7th among the pharmaceutical markets of the world. In 2013, the Russian pharmaceutical market volume has amounted to 1,045 billion rubles (including VAT) in end user prices, which is 14% higher than that of 2012. By the growth rate Russia shows the third place.

The Russian pharmaceutical market remains import oriented. 75% of drugs in money terms, consumed by the population, are produced abroad. Therefore, the first places in the ranking of manufacturers are occupied by foreign companies: NOVARTIS, SANOFI-AVENTIS. The third line is occupied by PHARMSTANDART – the only domestic manufacturer in the TOP-20 of leading players in the Russian pharmaceutical market.

In recent years distribution sector of the pharmaceutical market develops according to the clearly given vector – business diversification: all national distributors have within their control structure a subordinate pharmacy network; the second direction, which is actively developing – own manufacturing. In 2013 there was another change of leader – Katren for the first time took the top line with a share of 16.2%. Protek distributor with a share of 15.7% became second due to lower growth compared with the leader. TOP-3 in 2013 is completed by ROSTA distributor. Their combined market share amounts to 43%.

2013 was marked by mergers and acquisitions for retail pharmacies, where the transactors were the leading players in the pharmacy market. Also, we can see an emergence of a new form of cooperation – alliances and management services. According to the results of the year, the leading position is taken by Rigla pharmacy chain, the second place is occupied by Doctor Stoletov pharmacy chain (due to the merger with Ozerki network), and the third place is taken by Implosia. Their overall share reaches 7.3%.

In 2013, commercial segment of the Russian market shows high growth rate (+13%). In 2013 the sales volume in commercial segment amounted to about 609 billion rubles (19.1 billion dollars). 4.4 billion units were sold, which practically is the same as in 2012.

In 2013, the parapharmaceutical segment amounted to 169 billion rubles, which is 14% higher than in 2012. The pharmacies actively develop this direction in their sales by expanding the range of non-pharmaceutical products.

The state sector in 2013 also shows a growth rate of 14%. This is one of the most stable segments of the pharmaceutical market, since its development is based on budget money. According to the results of 2013, 84.4 billion rubles were spent for purchasing drugs for beneficiaries. Compared to 2012 the growth was about 8%. According to the results of 2013, the segment capacity of hospital purchases amounted to 182.6 billion rubles, which is 17% higher than in 2012.

In 2013 RTU drug import volume in Russia amounted to 14.9 billion dollars, which is 4% higher than that in 2012.

According the DSM Group forecast, the Russian pharmaceutical market will grow in 2014 by 13% in rubles and will reach 1,180 billion rubles.

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