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1
Russian Pharmaceutical Market Fluxes and Refluxes
Alexander Kuzin General Director DSM Group April
3, 2008
2
Growth rate of the market became 2 times less
Drugs market value ( mln, in consumer prices)
Drugs state sector
Parapharmaceutics commercial sector
Drugs commercial sector
2005
2006
2007
Source DSM Group, monthly retail audit
3
End of cheap money era
Source DSM Group, free publications
4
Stock market latest 9 months
Source rbc.ru
5
July 02, 2007 April 01, 2008 RTS Index
1912 2064 8 Pharmstandard 2
286 mln. 2 438 mln. 7 Veropharm
425 mln. 564 mln. 33 Pharmacy chain
36.6 712 mln. 504 mln. -29
???????? ?????
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??P-10 pharmacy chains on the commercial market
Source DSM Group, companies data
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??P-10 pharmacy chains on the commercial market
PRETENDERS to the 3rd POSITION
Source DSM Group, companies data
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Pharmacy chains finish of growth?
Source DSM Group
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The concept has changed focus is on profit
Source DSM Group
10
Pharmacy chains almost do not have foreign
capital
Foreign capital share in pharmacy chains is less
than 1 from the pharmacy maket value
11
Foreign capital actively comes to distributors
segment
Source DSM Group, free publications
12
Concentration has been growing in distributors
segment
Source DSM Group
13
TOP-10 distributors in 2007
Note turnover includes VAT
Source DSM Group, companies data
14
TOP-10 distributors in 2007
Source DSM Group
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Distributors markup decreased from 20 to 14
Source DSM Group (without DLO data and Russian
medications)
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??P-10 manufacturers in 2007
Position in 2006
Share in 2006
Position in 2007
Share in 2007
Changes
Manufacturers
1
1
-
SANOFI-AVENTIS
5,3
4,3
2
2
-
NOVARTIS
3,5
4,2
3
3
-
F.HOFFMANN-LA ROCHE
3,4
3,6
5
4
1
A.MENARINI'S GROUP
3,1
3,0
11
5
6
PHARMSTANDARD
2,3
2,8
4
6
-2
JANSSEN PHARMACEUTICA
3,4
2,8
6
7
-1
BAYER SCHERING PHARMA
2,7
2,6
10
8
2
NYCOMED
2,4
2,5
7
9
-2
GEDEON RICHTER
2,7
2,5
13
10
3
LEK D.D.
2,2
2,2
PRIZER and
SERVIER left TOP-10
Source DSM Group
17
Price index for various product groups
11,9
Consumer price index
15,6
Foodstuffs
13,3
Services
8,5
Oil
6,5
Nonfoods
3,6
Drugs
Source DSM Group, Goskomstat
18
Commercial drugs market growth is due to
changing in consumption structure towards
expensive drugs
25,0
Source DSM Group, monthly retail audit
19
TOP-20 companies units sales increase differs
from market trends
Source DSM Group, monthly retail audit
20
TOP-20 drug trade names of the commercial
market grow due to increase of sales in units
Source DSM Group, monthly retail audit
21
DLO 2008 results new names in TOP-20
Source DSM Group, data for January-February 2008
by realized prescriptions in DLO
22
Average unit price has been growing in 2008 as
well
Dynamics of average unit price, rbl.
498
415
332
155
2005
2006
2007
2008
(
preliminary data)
Source DSM Group, data for January-February 2008
by realized prescriptions in DLO
23
Share of expensive drugs will have grown in future
BUDGET 2008
RESULTS Jan.-Feb. 2008
Expensive drugs budget 33 billion rubles 51 31
Regional budget 32 billion rubles 49 69
Source DSM Group, data for January-February 2008
by realized prescriptions in DLO
24
Drugs consumption in units has been decreasing in
DLO
Source DSM Group
25
Pharmaceutical market will have grown 4 times
more by 2020
Source DSM Group
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GOOD LUCK!
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