Indian pharma continues to be upbeat on the Commonwealth of Independent States (CIS) markets. With India being the third largest pharmaceutical manufacturer in terms of volumes after China and European Union , it cannot afford to miss the opportunities in the region , opine spokespersons of many leading pharma companies in India.

While there is a big demand for generic drugs for a growing life style disease population and geriatric segment in the region, the harsh weather conditions also require a continuous supply of antibiotics, anti histamines, anti pyretic and expectorants.

 The demand for a wide cornucopia of drugs has made Indian pharma to beef up its presence in the region and set up more manufacturing facilities. There is also a huge scope for joint ventures and collaborations in the region for manufacture, marketing and clinical research.

The Federation of Indian Chamber of Commerce and Industry (Ficci) has been making efforts to explore business opportunity in the CIS which came into existence in 1991 after the disintegration of the former Soviet Union . It includes the Russian Federation, Ukraine, Moldova, Georgia, Armenia, Azerbaijan, Belarus, Kazakhstan, Uzbekistan, Kyrgyzstan, Turkmenistan and Tajikistan.

The CIS countries have a combined population of about 300 million and a total GDP of US $ 3 trillion and offered excellent opportunities for Indian exports in 2012. The GDP ranges  from US$ 2.4 billion in Russia to US$ 11 million in Moldova. The growth rate averages between 6 per cent to 8 per cent. The per capita income on purchasing power parity (PPP) basis is US$ 1800 to US$ 2500, according to Ficci.

The current trade between India and the CIS region is relatively low as compared to other countries. The Ficci aims to create a platform to discuss the opportunities and challenges in doing business with the CIS and encourage Indian pharma businesses to engage in a more comprehensive manner with the countries in the region.

Ficci in partnership with Department of Industrial Policy and Promotion (DIPP) had sent its business delegation to Russia on the occasion of seventh India-Russia Trade and Investment Forum held at St. Petersburg from September 19 to 20, 2013.

 The high level delegation of 120 Indian business leaders led by Union Minister of Commerce and Industry Anand Sharma discussed various business opportunities with their Russian counterparts at India-Russia Trade and Investment Forum at St. Petersburg.

Special focus was on the three round tables on pharmaceutical and medical industry, tourism and medical tourism and trade in goods, services and innovative products.

The Commerce Minister Sharma noted the emerging opportunities in both the countries and said that the three round tables had identified the specific projects where India could cooperate with Russia.

At the forum , pharmaceutical sector received major attention as India is looking at the opportunities that the 2020 pharma programme offers. Commerce Minister Sharma sought regulatory simplifications for Indian companies who not only want to have market access but also look for establishing manufacturing base in Russia.

In the recently concluded 19th India Russia Working Group on Trade and Economic Cooperation (IRWGTEC) meeting in Moscow, the Indian side had conveyed the details of barriers in the trade of pharmaceutical products to Russia. These barriers included substantial delay in all approvals and dossier evaluation due to insufficient number of competent specialists, huge number of backlog of dossiers accumulated by the Russian health authorities, lack of information about stage of approval etc. All this leads to avoidable delay in supplies, commencement of production, and launch of new product in the market, said Commerce Minister Sharma who added that that since Indian pharma companies are keen to establish manufacturing bases in Russia, it is imperative that Russian government should address their concerns in an expeditious manner.

 “In the past, the India Russia Trade and Investment forum has provided great opportunities to network with Russian businesses. The visit gave the Indian delegates a great opportunity to build stronger business relations with healthcare and pharmaceutical companies in Russia,” said Nirankar Saxena, senior director, Ficci.

Commenting on the strengthening of ties trade ties between India and Russia Federation, pharma experts pointed out that the CIS could not be ignored for exports. India’s expertise in generics could only find a market in the region. The Indian entrepreneurs could succeed in this region despite the challenges of language barriers and 210 waiting period for drug registration together with the increased cost of registration process amounting to Rouble 3,00,000 or US$10,200.

According to pharma consultants, India companies had a better chance to succeed in CIS because it is home to the largest number of USFDA approvals, EMA and MHRA audits. This gives the companies are better edge in the market to succeed.

 The new regulations which are enforced since 2010 would only go on to create better trade relations. Globally even the US and EU had stringent guidelines in place which Indian companies were only gearing up to adhere, said pharma consultants.

From Aurobindo, Ranbaxy, Venus Remedies Dr. Reddy’s JB Chemicals, Torrent

Pharma, Glenmark and Elder Pharma’s branded domestic formulations were acquired by Torrent are all present in the CIS.

From Karnataka the companies which have made presence in the region are Biocon, The Himalaya Drug Company, Micro Labs and Bal Pharma.

According to Archana Dubey Mitra, Vice President, Exports, Bal Pharma Ltd, CIS market definitely holds good potential and offers promising opportunity for quality players. Though the new regulations are welcome, the fees is too high to export and market multiple products. The 210 days seems to be good for the companies which could submit dossiers with zero errors. Also, language would play a major role to fast track registration.

 For Biocon too, the new regulations in the CIS have opened up new opportunities. From the levy of $10,200 or Roubles 3,00,000 for the single fee to be paid for new drug regulation to the 210 days of clearance period for registration process and the mandatory clinical trials , all indicate the transparency in the trade. This is a big boon for large companies as the region holds good potential for growth and Russia in particular with remarkable growth rate of 13 per cent, having strong support from the government is definitely bound to grow by leaps and bounds and is attracting the attention of global majors, said Kiran Mazumdar-Shaw, CMD Biocon in an earlier interaction.

There is also a huge demand for herbal products like drugs personal care. Hence, with their range of products, companies like The Himalaya Drug Company and Dabur cannot ignore the CIS.