For our partners, the Russian pharmaceutical market is a market of new business development opportunities and NovaMedica is a reliable guide in entering it. For the last decade, the Russian pharma market has been steadily growing in general and especially in those therapeutic areas where there were previously unmet needs. These areas see the most active growth and still have unoccupied market niches.
The key therapeutic area with the highest potential for partnership and business development in Russia is diseases of the central nervous system (CNS). Our advanced commercial infrastructure, successful history of product licensing and commercialization, experience in cooperation with international companies, as well as our own R&D and manufacturing site will provide a sound bridge for our partners to enter the Russian market.
For the last decade, the Russian market has demonstrated rapid growth, and experts believe that this trend will persist.
According to the data of IQVIA analysts for 2022, Russian pharma market grew by 13% in monetary terms (to 2 055 bln rubles) YoY. Retail segment grew by 15% (to 1 224 bln rubles), and hospital segment by 3% (to 503 bln rubles) in the same period. Federal reimbursement increased by 15% (to 131 bln rubles), and regional reimbursement by 32% (to 196 bln rubles).
E-com in pharma
The share of online retail in the pharmacy market continues to grow: according to the data of DSM Group, e-com gained 11.6% in 2022 and reached 194.3 bln rubles in turnovers in absolute terms. Analysts expect this segment to grow further in 2023.
Restrictions imposed as part of sanctions and countersanctions significantly affect transportation, logistics and finances, as well as export and import operations, and, consequently, have an indirect impact on availability of drug products in Russia. According to the data of DSM Group, the number of drugs sold in pharmacies started decreasing in the second half of the year, and the number of goods items in pharmacies dropped by 8.1% as of the year-end.
State’s long-term policy to increase the share of locally-produced drugs in the Russian pharma market translates into a steady trend, despite a slowdown in the last years. For example, according to the data of DSM Group, the share of localized drugs in the pharmacy market in 2022 was 45.7% in monetary terms and 65.7% in units. In the state segment, the share of local manufacturers reached 83.5% in units in 2022.
The market of drugs for the treatment of CNS diseases in Russia, which is the target market for NovaMedica and our potential partners, shows steady growth in retail, increasing every year both in value and in units. According to the IQVIA data, in 2022 it was 152 bln rubles, and the key drug selling channel, the retail segment, accounted for 84% of the total volume in monetary terms. The most important trends here are the growing number of patients and replacement of outdated cheap drugs by more expensive improved products.
For almost ten years, NovaMedica has been using the opportunities of the Russian growing pharmaceutical market to build its portfolio, and invites partners interested in promoting their products in Russia to share in our success.
To our partners, we offer a package of services that is as customized as possible and that includes all necessary product promotion stages, from clinical trials to market launch and sales organization. NovaMedica has the entire range of capabilities to ensure high-quality support of its partners at each stage. We have everything required for successful cooperation:
We are ready to contribute all these to joint projects with our partners to pave the way to success in the Russian market together.
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