Research of Growth Factors of the Russian Pharmaceutical Market

Abstract

The domestic pharmaceutical market is of great strategic importance for ensuring national security: the drug supply of the country and, ultimately, the health of the population depend on the level of development of the industry and its autonomy. Under the current conditions, the key factor in the development of the domestic pharmaceutical market is import substitution, the achievement of which is a strategic long-term goal of the industry. If before the events of 2014, the import substitution strategy was regarded as a benchmark, then the change in the political situation has actualized this issue, making it paramount. The study analyzed the indicators of the volume and capacity of the domestic pharmaceutical market in comparison with the main socio-economic indicators of the country, characterizing the standard of living of the population, identified the main trends and factors. It has been established that the pharmaceutical market has been steadily growing over the past 4 years, although it is developing in leaps and bounds, as a result of which, by 2019, the total value of the market has reached 1,843 billion rubles. Evaluation of data in foreign currency showed similar trends in the variation of market volumes, and the growth rates of the pharmaceutical market in the entire study period are higher than the growth rates of the average per capita income of the population and other socio-economic indicators reflecting the standard of living of the population. This indicates that the current growth trends in the pharmaceutical market are not due to inflationary processes in the economy, but are influenced by intra-industry factors.

Economic Factors Of Russian Pharmaceutical Market Development

“…This was a detailed blow to drug supply since it was the countries of Europe that for many years were the largest importers of drugs in the Russian Federation (Ovod, 2020). As a result, in the period 2015-2016, the availability and level of provision of the country's population with the necessary pharmaceutical products, including essential medicines, significantly decreased, which also inevitably contributed to the increase in prices in the pharmaceutical market (Ovod, 2021).…”