Major Opportunities For New Generics In Russia

Russia's pharmaceutical market has recovered from its 1993 low point andis now growing rapidly, John Lindquist, senior vice president of the Boston Consulting Group in London, told Euroforum's conference on pharmaceuticals and health care in Russia and its regions, held in Moscow this month (see also page 11).

BSG estimates that since 1993, the Russian market has been growing at a compound annual rate of over 30%, reaching a value of $3.3 billion in 1996, and that it will be worth $5.4 billion by 2000. Western companies' share of this market grew from 10% in 1993 to 23% last year, rising at a CAGR of 70%, and the market share taken by suppliers from eastern Europe, India and Turkey has also recovered, Mr Lindquist told the meeting.

The market is dominated by generics, which account for 75% of total drug sales in Russia compared with 50% in the markets of central and eastern Europe, but it is also highly receptive to modern generic products supplied at various price levels, and this presents industry with great opportunities, he said.