Western Drugmakers Advancing In Russia

11 May 1997

The advance of western pharmaceutical majors into Russia's drugs marketbecomes more evident as problems continue for the domestic industry. Foreign majors reportedly consider the market worth the effort and modest investment, despite the lack of purchasing power. For example, Novartis AG has now said that while it is not considering any joint-venture projects, it will open an office in Moscow.

Drug imports are growing, but Health Minister Tatyana Dmitryeva has reportedly told visiting western drugmakers that the Ministry wants to regain control of centralized purchasing, in order to monitor drug import spending more closely. Some say this will mean western firms needing Ministry approval to maintain volume. The aim is to buy fewer drugs abroad and make more at home, she said, and while the Ministry's support for domestic firms will be "unstinting," the sector is starved of investment and eager to "interact with the west." The emphasis would move from imports to joint-venture production in Russia.

Benefits in the Russian market include ample facilities for trialing new drugs, and an extensive but often underrated clinical and research background. It is not yet clear whether the final long-term emphasis will be on joint ventures and inward investment, or traditional imports.

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