Potential Cooperation Between Russia and India Regarding the Production of Pharmaceuticals Beneficial for Both Parties
Frost & Sullivan’s analysts comment on India’s plan to invest in the Russian pharmaceutical industry
India is ready to invest in the Russian pharmaceutical industry, including India-Russia joint ventures, as India's Commerce and Industry Minister, Anand Sharma, said during his visit to Russia last week. Among other resources and technologies, India is very keen in developing biotechnologies, nanotechnologies and other sciences such as genomics and bioinformatics, thereby entering the Russian healthcare industry.
“India is one of the largest manufacturers of generics in the market. At present, Russia is making a list of all the prescribed medicines it needs and Indian and Russian governments are working on a protocol which will stipulate production, manufacturing capabilities and safety standards. Top drug therapeutic areas in Russia include CNS, anti-diabetics, cold and cough medications,” says Frost & Sullivan Research Analyst, Ms. Swetha Shantikumar.
“In the late 90s and early 2000s, there was a very strong pharma import activity from India to Russia. At that time, Russia's main objective was to clear its debt through the Centralized Purchase System (CPS) by buying out useful commodities from India, in which pharmaceuticals also formed a major bulk,” she continuous.
“A potential cooperation between Russia and India seems very beneficial for both parties. Indian manufacturers can benefit from the fact that Russia is in the midst of pharmaceutical sector reform, known as Pharma 2020, which aims at strengthening the domestic production capacities,” adds Frost & Sullivan Consulting Analyst, Miss Dominika Grzywinska. “Therefore, those pharmaceutical companies which decide to open their production facilities in the country can count on certain sets of privileges, such as lower taxes or easier access to reimbursement lists. The entry of Indian pharmaceutical companies will help Russia fulfill the assumptions of the Pharma 2020 reform, i.e. making pharmaceuticals more accessible to citizens, strengthening domestic production and containing the ever-growing expenditure on drugs.”
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