Indian Drug companies are set to increase their presence in the Russian generic market by aggressively introducing new price competitive products. Despite few odds, the Indian Drug industry is gearing itself to tap ushering opportunities in the Russian market. The Indian companies are actively pushing the Anatomic Therapeutic Chemical (ATC) and International Non-proprietary Name (INN) generics in the Russian markets. The Russian government is also taking steps regarding reforms in pharmaceutical procurement and other regulatory activities. This will further boost the confidence of the Indian generic exporters.
The Russian pharma market is dominated by generics sales with a total market share of 89-91 per cent followed by ethical drugs 9-11 per cent. The share of branded generics segment moved up to 52 per cent during the year 2003 from 47 per cent in the previous year. Similarly generic share in the total sales increased to 27 per cent from 25 per cent. However, share of trade mark generics declined to 21 per cent from 28 per cent.
The pharmaceutical market in Russia is mainly divided into four segments viz., OTC, branded generics, generic, generics and patented drugs. The OTC segment turnover touched to US$ 1.76 billion during 2003 from US$ 1.06 billion in the 2000. Branded generics (prescription based or Rx) is the largest one with turnover of 2.66 billion. This segment was achieved turnover of US$ 1.58 billion in the year 2000. The turnover of generic generics, however, started moving now and touched to US$ 0.56 billion. The Patented drugs notched up market size of US$ 0.52 billion.
The Indian companies are playing crucial role in Russian pharmaceutical market. However, the share of volume of Rx is declining continuously over last three years. During 2001 the volume of Rx was 70 per cent, which declined to 53 per cent in 2003. However, the share of OTC segment is rising to 47 per cent in 2003 from 30 per cent in 2001. The growth in value of prescription based drug was stagnant during 2002 and 2001. The same was declined during the year 2003 to 67 per cent.
The Indian companies are expanding there marketing efforts to grab higher market share in terms of Rx generics. Indian companies achieved a market share of 6.6 per cent during 2003 as compared to 6.4 per cent in respect of 6.4 per cent and 6.1 per cent in 2001.
The Indian companies dominated the market share in leading therapeutical areas. The Indian companies have increased their market share during 2003. For instance, the market share in respect of non-narcotics and anti-pyretics segment with total sales of US$ 18.1 million in the Russian market, the Indian companies had captured a market share of 12.6 per cent as against 8.9 per cent in 2001. Total eight companies are selling there products. Indian companies moved fast in cold preparations (without anti-infectives) group of ATCs and increased their market share to 11.8 per cent from 3.3 per cent in the market size of US$63.4 million and increased their share in anti-rheumatics, non-steroidal plain segment ( total market size of US 43.8 million) to 13.3 per cent in 2003.
Though the Indian companies were able to increase market share in above mentioned categories, they lost their share in few segment of ATC like oral fluorquinolones, expectorants, acid pump inhibitors, etc.
Indian companies are dominating the antispasmodic/analgesic combinations, urinary quinolones and combinations with anti-hypertensives and/or diuretics segment with a market share of 24.7 per cent, 45.9 per cent and 92.6 per cent respectively. However, the market share in a few group of ATCs is declining but Indian companies are still holding significant market share in groups like oral fluoroquinolones (52.2 per cent), Acid pump inhibitors (64.2 per cent) and iron combination products (68.2 per cent). The firms are holding market of 20 per cent or more in at least ten products in Russian market.
Indian companies are also marching ahead with higher market share in respect of INN. 14 companies are marked by share of 9.87 per cent of ciprofloxacin which has a market size of US $ 20.98 million. Similarly, three Indian companies are enjoying market share of 9.81 for the Ketorolak which has a market size of US$ 20.84 million. The companies have also started active promotion of INNs like rifabutin, paclitaxel, chondroitin sulfate, loratadine, vinpocetine, etc in Russian market.