Living Through Medication: A Guide
In the first eight months of this year, the Russian pharmaceutical market has seen a 10% decrease in the number of new businesses registered compared to the same period last year, according to Victoria Kolganova. This marks a decade-long trend of decreasing business registrations in the sector.
Currently, there are 43,400 active organizations registered in the Russian pharmaceutical market. Out of the 1,900 new businesses registered this year, 57 have already ceased operations. This trend is particularly noticeable in the pharmaceutical production segment, where the appearance of fewer businesses is a natural process, believes Alexander Bykov, Director for Healthcare Economics at "R-Farm".
The wholesale distribution market of the Russian pharmaceutical market has been dominated by a few large companies for many years. This year, there were 1,100 new organizations in the wholesale segment, compared to 1,210 the year before. Similarly, the number of wholesale agents increased by 138 this year, compared to 147 in 2024.
The retail segment of the market is dominated by large federal and regional networks. However, the state's fight against business fragmentation in pharmaceutical retail may lead to a decrease in the number of players, according to Alexander Kuzin, CEO of "Aptechnaya Set 36.6".
The pharmaceutical production sector is capital-intensive with a long payback period, making it a challenging environment for new entrants. This, coupled with the labor market situation, influences the motivation of entrepreneurs to work in the pharmaceutical market, adds Mrs. Vatutina. The personnel problem is particularly noticeable in pharmacies, where sometimes specialists without specialized education are hired.
Mrs. Vatutina predicts that the shortage of personnel is likely to only increase. However, Alexander Bykov believes that this shift makes the pharmaceutical market more stable as entrepreneurs act more cautiously. The transition to the general tax system for some players who previously had tens and hundreds of legal entities on the "simplified" system has made the registration of new enterprises meaningless, according to Alexander Kuzin.
The largest participants in the Russian pharmaceutical industry include "FK Pulse" (362.4 billion rubles), NPC "Katrens" (303.5 billion rubles), "FK Grand Capital" (165.4 billion rubles), "Protek" (344.6 billion rubles), "Pharmstandard" (152.1 billion rubles), LLC "Bayer" (101.8 billion rubles), and LLC "AstraZeneca Farmasютикалз" (99.1 billion rubles). In the past year, 63 new pharmaceutical production companies have entered the Russian market, compared to 90 in the same period last year.
Despite the challenges, the news does not contain specific information about new companies in the Russian pharmaceutical market, their identities, or strategies for competing against established players. This lack of information underscores the need for further investigation into the trends and dynamics of the Russian pharmaceutical market.
Read also:
- Railway line in Bavaria threatened by unstable slope - extensive construction site at risk
- Wind Farm Controversy on the Boundary of Laois and Kilkenny
- Puerto Rico's Climate Lawfare Campaign experiences another setback with the dismissal of its deals.
- Delaware's contentious offshore wind project faces uncertainty as the Trump administration reverses course on clean energy initiatives.
