FUTURE OF RUSSIAN HEALTHBIO INDUSTRY

04-2013Identified marketopportunitiesPositive development factorsChallengesEducational & consultingservicesAttracting Russiancompanies to FinlandThere is a strong need for educationalservices (personnel for newly constructedpharma plants, research& developingpersonnel, HealthBio sector managers etc.)and Finland is well known for the high levelof both professional and universityeducation. We think it would be quite easy tooffer these services to local companies – butonly in case they will be adopted for the localneeds and translated (that is why themarketability score is not the highestpossible).We may suppose that in the future more andmore Russian companies would like to enterthe European countries and thus considerproduction outside Russia. Finland has verygood R&D and manufacturing infrastructure,and there can hardly be any obstacles toattracting Russians to Finland.Market size is however not very high, becausethere are many obstacles for its development(growing local competition, foreign playerssending their personnel for training at their plantsworldwide, not enough resources of smallplayers). Practically all the same can be saidabout professional consultancy – there is a needand it will obviously grow in the future, and themarketability is high, but the demand for theseservices from Finnish companies would hardlybe too high.Our macroeconomic score is not quite high ,because impetuous development of Russianpharma and bio industries are mainly based onstate support and the products are designed andmanufactured for the local market and inaccordance with local standards. We expect thatdespite certain interest, finally only a small groupof Russian companies with niche products willcome to Finland.Traditional export ofhealthcare products,including medicines,laboratory and medicalequipment etc.As it is stated in the report, there are stillopportunities for traditional export and import,especially when products are unique and basedon high tech solutions. However,Marketability score is not very high, as it is veryexpensive to enter the Russian market, there aremany bureaucratic barriers and delivery costs aregrowing from year to year. Market potential also notvery high because of the Russian protectionalisticpolicy.