Pharma companies poised to unlock Russia's potential PwC report

Russia offers substantial growth opportunities for the pharmaceuticals sector, according to report launched by PricewaterhouseCoopers. Titled The Russian Federation - Prescription for Growth, the study concludes that, despite many significant challenges, Russia, with untapped demand for innovative drugs and as a suitable place for conducting R&D, offers considerable potential.

This advice comes as the drug industry's main markets are under serious pressure. North American, Europe and Japan jointly account for more than 90% of total global pharmaceutical turnover, which reached $602.0 billion in 2005, according to IMS Health figures. However, North America and Europe are experiencing quite sluggish growth, with drug turnover rising 5.2% in the former and 7.1% in the latter. Moreover, notes PwC, the Japanese market saw its highest year-on-year increase since 1991, with sales in 2005 up 6.8% on the previous year, but this was still a much slower rate of growth than various emerging countries experienced.

Turnover of pharmaceuticals in the Russian market reached a value of $3.74 billion last year, and it is now one of the fastest-growing pharmaceutical sectors in Europe, with sales forecast to increase by around 10% a year between 2006 and 2010.