Estonia's Tallinn Gains From Generics Sales To Russia

Estonian company Tallinn Pharmaceutical Factory has reported healthy profits because of high demand for its generics drugs from Russia, according to the Baltic Times. It recorded a profit of $1 million in the first half of this year, and forecasts profits of $1.7 million for the whole year.

Tallinn is selling 82% of its over-the-counter medicines to Russia and other Commonwealth of Independent States countries, but only 7%-10% of its production at home, despite the cheapness of its products. Pharmaceuticals from the European Union account for 60% of the Estonian drugs market. Tallinn is reported to be achieving good sales in Russia and the CIS due to low overheads, minimal advertising and low R&D spending. This makes it possible for the company to sell its generics for two-to-five times less than comparable trade-marked drugs produced in western countries.

The Baltic Times adds that there is a lack of long-term clinical studies on the effectiveness of Estonian drugs, but Tallinn's products are understood to have rated highly in a comparative analysis of painkillers conducted by Tartu University in Estonia. This analysis is believed to have shown the company's drugs as being as effective as western drugs.