By Mia Burns (firstname.lastname@example.org)
Several fundamentals of the Russian healthcare industry continue to be strong, according to Frost & Sullivan. Large population base, growing middle class consumers, underpenetrated sectors, and a low installed base all point toward a lucrative market. During a recent webinar, healthcare analysts discussed the challenges in this diverse market and pitfalls to avoid, best practices, and success stories. In addition, they covered insights on effective strategies.
Drug consumption within Russia continues to rise because of several factors, says Dmitry Raspopov, consulting analyst, Russia, Frost & Sullivan. The factors are population income growth, increasing health awareness of the population, the evening out of economic discrepancies between different regions of Russia, increasing government spending, and introduction of fully fledged drug coverage, he told Med Ad News Daily.
The healthcare development program for 2020 encompasses 11 sub-programs with an outlay of $200 billion that address morbidity, education, health service provision, therapy, and quality of human capital, as the analysts outlined in the briefing.
In addition, a strategy for drug provisions until 2025 looks to address the demand and supply balance, distribution, access, and reimbursement, and education and awareness. The development of medical science concerns enabling the transfer of innovation and technology to applied medicine from infrastructure development to product commercialization. A final point regarding the attractiveness of the Russian healthcare market is the development the pharma and medical devices industries from 2013 to 2020.
According to Frost & Sullivan analysts, a major goal of the 2020 pharmaceutical program is to secure at least 50 percent through domestic sources. Another notable milestone is the mandate that all domestic manufacturers comply with good manufacturing practices by January 2014. Analysts say that they anticipate a growing importance of generics within the Russian healthcare market. Raspopov attributes the emphasis on generics to the global trend for cost containment which favors cheaper generics. “The government financially supports Russian companies to develop generics of many branded drugs, which are imported by multinational corporations,” he told Med Ad News Daily. “New legislature now requires doctors to prescribe drugs based on international non-proprietary names, and not on a brand.”