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Russian Pharmaceutical Market 2020 (Pdf, 3.8 Table of contents Summary 3 1. Volume of the Russian pharmaceutical market 6 2. Commercial drugs segment 14 3. Drug reimbursement program (DRP) 37 4. Volumes of purchases of drugs for needs of HCI 55 5. Dietary Supplements 70 6. Cosmetics 83 7. Pharmacy chains 94 8. Distributors 103 9. Manufacturing 111 DSM Group General Director Analytical Report Sergey Shulyak Russian Pharmaceutical Market Results of 2020 Director of the Department of Stategic Research Address: Julia Nechaeva 7, Building 2, 5th Yamskogo Polya Street, Moscow, 125124 Analyst Tel: Irina Sharapova +7 (495) 780-72-63, +7 (495) 780-72-64 Head of PR Zhalya Gadzhieva www.dsm.ru, www.dsmgifts.ru Annual report 2020 Summary 2020 turned out to be unprecedented for (23% each, respectively). It is of note that everyone. Any industry’s performance in the opinion of most Russians the Russian is evaluated on the basis of the impact healthcare system (doctors, medical staff and of Covid-19. It is the pandemic of the other Russian public healthcare workers) did coronavirus infection that was the main their utmost during the spread of Covid-19 driver of the changes on the market and (48%) or even more (22%). in the economy. It has changed many of the established trends and tendencies and Certain laws were passed to support the now it is much more difficult to analyze and industry, including legislative acts supposed forecast the current situation. to prevent problems with the provision of the population with drugs. In March, the State For the pharmaceutical industry the Covid Duma passed through final reading a law on year was some kind of a challenge and a freezing drug prices during pandemics. Now, test for strength. An increase in sales due in certain circumstances, the government to the feverish demand for drugs, the rise of will be able to control prices for products in the public segment, the growing importance pharmacy chains. and acceleration of legislative initiatives - all this significantly influenced both the In April, the State Duma passed a law on overall market dynamics and the market distance selling of drugs. In 2020, the law environment. Furthermore, all this was applied to over-the-counter drugs, but in case happening against the changing conditions of an emergency and a risk of the spread that all of us had to get adjusted to. of diseases dangerous for the public the government may temporarily allow distance So, it is not surprising that among the events selling also of certain Rx drugs. said to be the key events of 2020 were the coronavirus (61% of Russians think so, One of the most significant legislative initiatives according to the VCIOM (Russian Public of the government was the introduction of the Opinion Research Centre) December 2020 procedure for accelerated registration of drugs survey), self-isolation and remote working and medical products in case of an emergency. 3 The initiative enabled Russian manufacturers became a growth driver. The drug names to promptly register and launch on the market varied but owing to a high demand for two drugs for the treatment of the coronavirus them the market in general showed positive infection: Favipiravir and Levilimab. The dynamics in roubles (+10.6%) and fell only accelerated registration made it possible to by 2.3% in packages. offer on the market Russian Covid-19 vaccines and to start mass vaccination already in At the end of 2020, imported drugs in the January 2021. overall market accounted for 56.3% in roubles, and for 31.4% in packages. In volume In 2020, Russia’s pharmaceutical market terms, the market growth was negative both was worth over 2,040 billion roubles, which for made-in-Russia drugs (-4%) and foreign- is by 9.8% more than in 2019. In volume made ones (-3%). In rouble terms, localized terms, sales of drugs dropped by 4% to come drugs grew by 13%, and imported ones - to 6.17 billion packages. by 8%. Those figures account for the non- achievement of the Pharma-2020 Strategy The ultimate performance of the targets. pharmaceutical market in 2020 was conditioned on the consumer and the The top-ranking manufacturers remained consumer’s response to Covid-19, namely, foreign companies: Sanofi, Novartis the consumer demand shift factor. An and Bayer. There are three Russian increased demand for a certain group of manufacturers in the top 20: OTCpharm, drugs, driven by the news about methods of Biocad and Pharmstandard. the treatment of the coronavirus infection, increased sales or, sometimes, caused As before, the main players in the new shortages of drugs, as manufacturers were online sales segment are pharmacy chains. not always ready to promptly meet the That is why most of the eCom business emerging needs. volumes are within the pharmacy retail sector. In 2020, pharmacy eCom was worth Alongside high dynamics in the commercial around 93.2 billion roubles (drugs and segment, public purchases of drugs continue parapharmaceuticals), which corresponds to be a growth driver owing to additional to 6.6% of the pharmacy market capacity. In funding of national projects. The highest December, the figure grew already to 8.2%. growth in the purchase volumes in 2020 Whereas the sales dynamics across the was recorded for drugs for needs of HCI. market makes for around 10%, the online The major growth drivers were the «Fight turnovers grew against 2019 by 62%. Cancer» programme and the federal heart disease project launched in 2020. 2020 saw the continuation of the trend towards consolidation of major players, The situation in the commercial segment though mainly through internal expansion of drugs in 2020 was quite confused: from rather than through mergers. As a result, panic buying in March to nearly negative the share of the top 20 players grew to dynamics in the summer. «Anti-covid» drugs 68%. The top performer by consolidation 4 Annual report 2020 of pharmacies and pharmacy chains was largest distributors on the pharmaceutical ASNA, with a 14.4% share. Among traditional market was 74.1%. chains, the maximum share was held by Rigla chain: 6.7%. Erkapharm GC remained According to our forecasts, in 2021 the the third, with a 4.8% share. market will be worth 2,171 billion roubles, which is by 6% more than in 2020. Any other One of the notable events in the distributor growth factors are hardly probable. One of segment was the change of the leader. In the great expectations is the return to the 2020, distributor Puls with 14.7% came on «pre-covid» consumption patterns. top. Distributor Protek with 14.0% moved down to the second position. The third- ranking was distributor Katren with 13.8%. At the end of the year, the total share of the 10 5 Volume of the Russian 1. pharmaceutical market When written in Chinese, the word ‘crisis’ is composed of two characters. One represents danger and the other represents opportunity. John Fitzgerald Kennedy In 2020, the world was following the news It was decided that as on July 1, 2020, drugs in on the spread of the coronavirus pandemic: Russia would have to be labelled. In its Order the number of infected people, methods of No. 955 dated June 30, 2020, the government treatment, restrictive measures and their set special procedures for imports and impact on the economy, the second and, release for use of unlabelled drugs. probably, the third waves, development of vaccines, the number of vaccinated people, Following the introduction of the identification and so on. Either way, the topic remains a and tracking system, many pharmaceutical first-priority one in view of the global spread manufacturers, distributors and pharmacy of the infection and high fatality rates. chains started lamenting about failures Covid-19 is, certainly, the major factor for the in the information system for monitoring development of the pharmaceutical market movements of drugs along the supply chain, last year. It influenced the market in many which froze drug sales. As it all happened at ways, involving economic processes, state the time of a peak in the demand, the Ministry regulation, and consumer demand. of Industry and Trade provisionally allowed release of drugs a notification basis. We always analyze the market environment, in the first place, in terms of the applicable Given the epidemiological situation in the legislation. In this context, the pandemic country and an increased demand for drugs, turned out to be kind of an accelerator that the mandatory labelling operator «The speeded up the enactment of certain laws. Centre for Development of Perspective Technologies» (CRPT) stopped charging drug But for Covid-19, labelling would have labelling fees. certainly be named as the key event of the year. But in the period of the coronavirus, It was done when pharmacies started facing labelling became a stress test for the shortages of certain drugs, especially, amid a industry. The decision was made though higher demand for medications badly needed the pharmaceutical market participants for the treatment of the coronavirus infection. warned that amid the pandemic it could cause extremely adverse consequences At the end of 2020, the Centre for Development for everyone: producers, pharmaceutical of Perspective Technologies announced that companies, retailers and, ultimately, for pharmacies and medical organizations consumers, i.e. patients who need drugs. the introduced facilitated procedures for drug 6 Annual report 2020 labelling would have no limit in time, and for Many procedures can be now performed economic agents they would remain in force electronically; GMP certificates have until July 1, 2021. been extended; options for remote GMP inspections of manufacturing sites are To create conditions for a smooth transition available, and so on.
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