Bullish On Russian Pharmaceutical Market Despite Risks

Russia - Pharmaceuticals & Healthcare - Thu Jul 10, 2014 

BMI View : Demographic trends, rising incomes and greater state spending on healthcare will drive growth within the Russian pharmaceutical sector. However, we also see risks to investment and considerable barriers for foreign companies. On balance, we remain bullish on the growth prospects for Russian pharmaceutical spending, but highlight local companies as having better opportunities to realise this growth than multinationals.

Russia offers the largest commercial market within the Central and Eastern European (CEE) region for the pharmaceuticals and healthcare sector. We see the country as being the primary growth driver for the region, with both public and private spending contributing to expanding commercial opportunities. Russia's demographic and economic outlook also bodes well for the sector's development. Nonetheless, we stress that there are key risks to this bullish view.

Key Growth Drivers For Pharmaceutical Spending

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  Population Of Pensioners Set To Rise

  Total Pensionable Population (%)

Source