FUTURE OF RUSSIAN HEALTHBIO INDUSTRY

04-2013Identified marketopportunitiesPositive development factorsChallengesJoint biotech venturesand daughter companies,inc. pharma and medtechproductionSubcontracting forinternational and RussianpharmaHuge market volume (sales of localizedproducts all over Russia to both private andpublic sector) is doubled with high macroeconomicpotential of growing pharmaindustry, investments, consumer demandetc.Some niche opportunities should howeverexist, especially in the North West wherecooperation with Finnish companies could belogistically and financially acceptable.Entering the market is not an easy and cheaptask, so we give a moderate score formarketability.According to the research, there are not so mayopportunities of this kind: international pharma &medtech manufacturers are using existing R&Dfacilities and partners abroad, Russians aretrying to integrate all stage of productdevelopment into the same organization and donot rely on subcontracting,Growing logistic and customs costs may bringnew challengesPPPWe see the market potential of public privatepartnership projects as very high and knowthat at least in Saint Petersburg theauthorities would like to involve Finnishcompanies into PPP schemes. In the futurethey may become one of the maininstruments of the healthcare sectordevelopment, and it may be recommendedto track changes in this sector on a regularbasis.However, taken underdeveloped legislation andfinancial risks into attention we think it verychallenging to join the local PPP projects justnow.