According to a study conducted and published by Chemexcil and the Ministry of Commerce of Industry, in support with the Indian Missions in the CIS countries during early 2005,CIS countries open abundant opportunities for Indian pharma companies. As the Indian companies have proved their manufacturing and R & D capabilities, CIS countries comprising Russia, Kazakhstan, Uzbekistan, Kyrgyzstan, Tajikistan, Turkmenistan, Azerbaijan, Armenia, Georgia, Ukraine and Belarus can benefit enormously by establishing tie ups with their Indian counterparts.

Russia

The trend of pharmaceutical import in the Russian market is fast changing. Western companies and multinationals are rapidly increasing their market share, while Indian exporters and distributors continue to remain strong in the market. The top 20 medicines list is also dominated by foreign brands, predominantly of Western companies.
The study recommends that Indian pharma companies should set up production bases in Russia to realise the full benefit of the situation.

Antibacterial medicines, medicines for cold and cough, anti-rheumatic medicines, multi-mineral/poly-vitamin medicines are the leading segments having attractive retail sales in Russia.

Kazakhstan

Kazakhstan is still dependant on imports of medicines. The current production meets only about six per cent of total supply of medicines in the country. Under the approved national programme on health, the Government of Kazakhstan expects the local production to grow up to 35 per cent in 10 years. Overseas companies are being encouraged to establish joint ventures with Kazakhstan companies. The government offers various incentives for investors. Majority of the facilities in the country still do not comply with GMP standards.

In an effort to improve their export potential, they are now seeking opportunities to upgrade their facilities to meet the standards.

Low efficiency of testing labs in issuing quality certificates required for every batch of the product and high dependency on local suppliers of raw materials are some of the areas of concern for Indian pharma companies eyeing to make investments in Kazakhstan, the study pointed out.

Uzbekistan

As per trade statistics, pharmaceuticals have been the largest single item of Indian exports to Uzbekistan. Core Healthcare of Ahmedabad has set up a joint venture in 1997 in the name of Core Pharmasanoat Ltd, Ajantha Pharma entered the country with its joint venture company Surkhan Ajantha Pharma in 1993, Gufic of Mumbai has set up a joint venture company by name Gufic Avicenna Ltd in 1997, and Dr Reddy's Laboratories in 1998 set up a joint venture company by name Reddy-Pharmed Ltd.

There is scope for medical equipment like disposable syringes, IV sets and blood transfusion sets which are mostly imported by Uzbekistan.

Kyrgystan

A small portion of pharmaceuticals requirement is met through local production in Kyrgyzstan. There are over 1800 organisations relating to the pharmaceuticals sector of which over 40 are producers. There are over 700 pharmacies. The country mostly depends on pharmaceutical imports. Kyrgyzstan imported drugs and pharmaceuticals worth US $ 127.8 million during the period 1999-2003.

According to the study, the products usually imported by Kyrgyzstan from India are anti-biotics, cardiovascular drugs, and drugs for liver disorders, pain-killers, multivitamins. The government does not interfere in the pricing of drugs and pharmaceuticals, thus attracting companies to tap the market. Sale of spurious and substandard medicines is a major concern in the country, and this provides an opportunity for Indian pharma companies to provide quality medicines.

Russia, India, Iran, Poland, Germany are the main exporters of pharma products to Tajikistan. The country gets international funding from UN, ADB and NGOs for procuring drugs and hospital equipments.

Azerbaijan

The import of pharmaceuticals by Azerbaijan in 2000 was about US $ 37 million which grew to US $ 60 million in 2002. About 50 countries export pharmaceuticals to Azerbaijan including India.

Georgia

The total size of the pharma market in Georgia is estimated at US $ 50 million annually. Of the countries exporting pharmaceuticals, Russia and Ukraine are the major players. Aggressive marketing and correct drug pricing would enable Indian pharma companies to enter the market. Indian companies such as Ajanta Pharma and Maharishi Ayurveda have tied up with Georgian companies to market the products.

Ukraine

Ukraine is the second important CIS market that Indian pharma companies can target. Ukranian Government has extended the deadline for pharmaceutical producers to become GMP compliant from 2002 to 2007. In 2003, the total import of pharmaceutical grew by 31 per cent in value and reached US $ 529 million. Major portion of imports by Ukraine has been from the EU countries. Germany has been the leading exporter to Ukraine.

The pharma industry in India is one of the largest and advanced among the developing countries. It manufactures bulk drugs for several major therapeutic segments. The industry's growth is driven by exports of bulk drugs, formulations and generics. The strengths of the country has been USFDA / WHO compliant manufacturing units, increasing investments in R & D, technical manpower. This makes India a prospective partner for CIS countries.