Russia's share of global biotech market just 0.1% - Sharonov
ST. PETERSBURG. May 28 (Interfax) - Russia's share of the global biotech market is just 0.1%, Andrei Sharonov, the head of Moscow School of Management Skolkovo said, adding that the economic advisability of investment to localize pharmaceutical production is not always evident.
"Russia has just 0.1% of the global biotech market," Sharonov said during a discussion at the St. Petersburg International Economic Forum (SPIEF) on Saturday. The Russian pharmaceutical market totaled 1.130 trillion rubles in 2016 and is growing at roughly 7% a year by value. But it is stagnating in terms of the number of packages, which is reflected in rising prices in the segment," he said.
Purchases by individuals account for approximately two-thirds of the entire market," Sharonov said. "Accordingly, the share of state purchasing is about one-third and in general includes separate categories of individuals and the hospital segment," he said.
Investment in localizing production in Russia has reached $2.3 billion in response to changes in legislation, he said. "However, it must be noted that the economic advisability of this investment is not always evident due first of all to market saturation and secondly to shifting regulations," he said.
Russia is still behind the leading countries in terms of life expectancy, which points to problems with the healthcare system and the availability of pharmaceutical products, he said.
The global biotech market is growing at roughly 10% a year and by 2020 may reach roughly $600 billion. The global pharmaceutical market will grow approximately 6%-6.5% a year and reach $1.2 trillion by 2022 thanks to the arrival on the market of a new wave of medicines, including new cancer treatments," he said.
Alexei Alekhin, a department head at the Industry and Trade Ministry, said the ministry is creating instruments for development of the industry. More than 50 projects worth over 3 billion rubles in the biotechnologies area are being supported.
In addition, subsidies will be provided for clinical research and to organize production of pharmaceutical preparations. Moreover, a venture fund might be created that would begin operating in 2019, Alekhin said.