Pharma on the pulse
of Moscow Industry

Moscow accounts for about a quarter of all pharmaceutical products shipped throughout Russia. In the coming years, business support mechanisms will make the capital one of the main centers in the national pharmaceutical industry.
The main drivers of market growth are growing government investments in the procurement of pharmaceutical products as well as the implementation of the Pharma-2030 strategy. It is primarily aimed at further import substitution and localization of new production facilities. Coronavirus showed the importance of the work already done under Pharma-2030 and the need for further support to the industry. It is worth noting that the country has also a strong focus on exports. By 2030, the exports of domestic drugs are expected to grow by about five times versus 2018 figure up to USD 3.8 bn.

Moreover, the need for certain drugs does not always mean that their production will be economically feasible for the company. For example, when it comes to the essential drug list, the maximum allowable prices are set at the state level, and the price increase for APIs (these are often raw materials imported from abroad) makes production unprofitable.
ABOUT 30 LARGE AND MEDIUM-SIZED PHARMACEUTICAL COMPANIES OPERATE IN THE CAPITAL.

38.3% WAS THE GROWTH IN THE MOSCOW PHARMACEUTICAL PRODUCTION FROM JANUARY TO NOVEMBER 2020. THE 9-MONTH INVESTMENTS REACHED RUB 4.98 BN, A 60% INCREASE OVER THE SAME PERIOD IN 2019.

ALMOST RUB 176 BN ARE THE REVENUE OF THE MOSCOW PHARMACEUTICAL MANUFACTURERS FOR 11 MONTHS OF 2020 MONTHS, WHICH IS ALMOST 32% HIGHER THAN IN THE SAME PERIOD OF 2019. THE SHARE OF MOSCOW IN THE TOTAL VOLUME OF PRODUCTS SHIPPED BY PHARMACEUTICAL MANUFACTURERS IN RUSSIA AMOUNTED TO 26% OVER THIS PERIOD OF TIME.
Moscow supports manufacturers. For example, companies that have obtained the industrial complex status enjoy significant preferences in terms of profit, property and land tax, etc. From 2016 to 2019, companies saved about RUB 168.7 m щn taxes due to this status. As for incentives for setting up production facilities, the optimal mechanism for public-private partnership in this industry is offset contracts. Moscow has already concluded five offset contracts with cumulative investments of almost RUB 13 bn. Three of them are related to the drug production.

These support mechanisms are bringing Moscow to the fore as one of the main national pharmaceutical industry development centers, and the access to technology and highly skilled personnel will greatly facilitate the localization of production in the capital.
E-mail: pressprom@mos.ru
Audience: 16+