Financial crisis to increase share of cheap domestic drugs in Russian market

The ever rising drug prices in Russia will result in the increase of the share for cheap domestic drugs in the Russian pharmaceutical market and a potential shortage of expensive imported drugs during the next several years, according to latest predictions of the Russian Ministry of Health, reported by The Pharma Letter’s local correspondent.

Analysts at the Ministry predict that this year the Russian pharmaceutical market will increase by 7.9% in value terms compared to 2014, however in volume terms the market will decline by 4%-5%. Such trends are due to the ongoing escalating prices in the market, caused by the continuing economic crisis and reduction of purchasing power of local population.

The reduction of consumption of expensive imported drugs is accompanied by the growth of production of generics and cheap drugs of the domestic origin. By 2016 imported drugs will account for 78% of the Russian pharmaceutical market in value terms and about 41% by volume.