New opportunities in Russia's pharma market with Healthcare Development Program

The recently-announced Russian Healthcare Development Program is likely to cause major structural changes in the country's pharmaceutical market and create new opportunities for foreign investors. The main aim of the government-introduced program is to ameliorate the quality and availability of health care, thereby improving overall social well-being.

Toward these ends, the Russian government plans to introduce mandatory health insurance, supply out-patient hospitals with modern medical equipment and qualified personnel, create an Electronic Health Records system, and discourage self-treatment by its tightening control over prescription drug sales.

This newest initiative includes the Russian Health Ministry's proposal to enhance the domestic production of "strategically important" pharmaceuticals. A draft list of 55 drugs was announced on December 11. This includes drugs used to treat the main causes of death in Russia: heart disease, cancer, infectious diseases as well as diseases of the respiratory and digestive systems. Currently produced by major international companies including Novartis, KRKA, Sanofi-Aventis, Schering-Plough and Roche, most of these pharmaceuticals will remain under patent protection for the next two to three years.