Eduard Voytenko: embargo on the drugs import from the US may affect certain segments of the pharmaceutical industry
Eduard Voytenko CEO at Baikal Communications Group commented to the TASS news agency what will happen in the country’s pharmaceutical market if the State Duma of the Russian Federation passes the law «On measures of influence (counteraction) to unfriendly actions of the US and (or) other foreign states».The bill, in particular, provides for the prohibition or restriction on imports of agricultural products, raw materials, food, alcohol, tobacco or drugs into Russia from the US and other unfriendly countries. However, medicines, which have no analogues in Russia, will not affect the limitations.
«Nowadays, the share of US producers in the Russian pharmaceutical market is about 10%. The main importer is the European Union (more than 70%). In terms of output, the Russian market is on the 14th place in the world and, at best, will retain this position in the coming years. Roughly speaking, the volume of imports is approaching the $ 10 billion mark. As seen in the import structure, our country depends critically on the EU, perhaps less from the US, in general. But, if we talk about the consequences of prohibitive measures for the market, then we need to have a look at the segments. Russia is still very dependent on the import of medicines and pharmaceutical raw materials, especially in specific spheres. It may happen that, for some patients, American drugs will have nothing to be replace with adequately. At the same time, the untwisted cycle of agiotage, connected with import substitution in pharma, will not benefit anyone. In this industry it is impossible to quickly and efficiently recreate drugs that will be completely analogous to foreign modern medicines. The patients and, in the long run, the domestic producer will suffer. If we remove the competitors from the market by force, the companies will, of course, have more opportunities to replace products in the domestic market, but this will be niche artificial development without global prospects».