Current state of the pharmaceutical industry in Russia
The Russian market for medical equipment and products is actively developing and is estimated at approximately 500 billion rubles. However, despite the positive dynamics, the share of domestic products in the total market volume is from 20% to 31% . By the end of 2023, it reached 25.4%, which indicates continued dependence on imports and the need to intensify efforts towards import substitution.
Moscow is one of the leaders in the production of medical equipment: it increased the production of instruments and equipment by 52% from January to August 2021. The capital produces artificial lung ventilation devices, pulse oximeters, cardiopulmonary resuscitation equipment and other important products.
Government support and incentive measures
The public sector plays an important role in the development of the domestic pharmaceutical industry. The Russian government is implementing a number of programmes and measures aimed at supporting Russian pharmaceutical companies and stimulating the production of medicines and medical products in the country.
Main measures of state support:
- financing of scientific research in pharmaceuticals
- subsidies for manufacturers of medical devices
- preferential lending to pharmaceutical companies
- creation of technological clusters and innovation centres
- introduction of the “Third Wheel” mechanism, which limits the purchase of foreign drugs in the presence of Russian-made analogues
- ensuring stable demand for products through offset contracts
According to the Ministry of Economic Development, the production of medicines and materials will grow by 33.1% by 2027 compared to the current level. Growth is expected to be 9.9% in 2025 and 4.8% annually in 2026 and 2027.
Problems of import substitution and ways to solve them
Despite the measures taken, the import substitution process faces a number of difficulties:
- insufficient level of development and production of new drugs
- dependence on imported raw materials and equipment
- lack of qualified personnel in the pharmaceutical sector
To solve these problems, it is necessary to:
- develop technologies for production of medicines and medical products
- create conditions for attracting investment in the development and production of drugs
- support domestic pharmaceutical manufacturers by providing preferential loans, tax breaks and other incentive measures
- accelerate localisation of the full production cycle, including the synthesis of active pharmaceutical ingredients (API)
Examples of successful projects
A number of successful import substitution projects in the pharmaceutical industry are already being implemented in Russia. Russian pharmaceutical companies are mastering the production of drugs previously imported from abroad and are introducing new domestic analogues to the market. Achievements include:
- development of the first vaccine based on mRNA technology (Gam-COVID-Vac M, developer: N.F. Gamaleya National Research Centre of Epidemiology and Microbiology)
- creation of an innovative drug for the treatment of oncological diseases (Oncaspar, manufacturer: R-Pharm)
- launch of serial production of complex biotechnological drugs
- production of medical equipment for diagnostics and therapy
Tula scientists are successfully implementing import substitution projects in pharmaceuticals, ensuring the release of nine new drugs, including an anti-inflammatory gel and ophthalmic drops. Other 30 new drugs are prepared for serial production, the expected production volume in 2025 is about 1.5 billion rubles.
According to the plan of measures for import substitution in the pharmaceutical industry of the Russian Federation, by 2025 it is planned to organise a full cycle of production of a number of vital drugs, including amlodipine, warfarin, sodium heparin and others.
Prospects for the development of import substitution in pharmaceuticals
The development of import substitution in the medical sector remains a strategic direction for Russia. In the future, state programmes will be aimed at:
- increased investment in scientific research
- expansion of exports of Russian pharmaceutical products
- creation of new technologies to increase the competitiveness of products
- improving the regulatory framework in the pharmaceutical industry
By 2030, the volume of the Russian pharmaceutical market should reach 3.7 trillion rubles, and the share of drugs – 42.6% . The state plans to increase the share of Russian drugs on the market to 70% within seven years