Pharma companies to invest at least 1 billion euros in Russia; Ukraine outlook

Because of Russia’s Pharma 2020 program regulations, designed to support local production, an increasing number of pharmaceutical companies are deciding to open their production facilities in the country. The total amount invested by pharmaceutical manufacturers in Russia could reach at least 1 billion euros ($1.4 billion), according to estimates included in the latest report from PMR, a Poland-based research and consulting company, entitled Generic and innovative drugs market in Russia and Ukraine 2011.

Strong support for local drug manufacturing in Russia

In October 2010, the government of the Russian Federation approved the Pharma 2020 program. Its main goal is to overcome the existing technical, scientific, technological and industrial backwardness of the domestic pharmaceutical industry and Russian medicine, to reduce dependence on raw materials from foreign suppliers and to create a technological basis for the transition of the pharmaceutical industry toward innovative models of development. Under the program, domestic production will account for 50% of all medicines available on the Russian market in 2020, in stark contrast to the current 20%-25%.