In 2020, the total volume of online sales or reservation of medicinal products (pharmaceutical drugs and parapharmaceuticals) in Russia amounted to RUB 137.5 bln (end-user prices, VAT included), which is 9.3% of the market volume. The e-commerce segment in this ranking is represented only by organizations selling medicinal products on a regular basis; these volumes do not include the revenue of gray online businesses importing original drugs to Russia from other countries, as well as services selling generics unregistered in Russia.
As of January 1, 2021, a total of 67,296 pharmacies were operating in Russia. (Only pharmacies purchasing goods from distributors were counted.) Compared to January 1, 2020, the number has decreased by 1,539. The downward trend started back in April 2020, a clear impact of the COVID-19 outbreak in Russia, as well as the set of measures taken to stop the spread of the epidemic. Then the situation deteriorated due to general economic problems, including the decreasing incomes of the population, as well as the fact that it is no longer possible to impose UTII on labeled goods.
In 2020, the Central Federal District manufactured RUB bln 291.4 worth of ready-made pharmaceuticals (manufacturers’ prices, VAT included), accounting for almost 55% of the total drug production in Russia in monetary terms. However, the growth rate in monetary terms is somewhat lower than the national average – +20%, while the national average exceeded +25.6%.
2/21/2021 2020 Ranking of Russian Pharmacy Chains
January 2021 saw an occasion, curious in every aspect, which is the capitalization of the Russian Internet retailer Ozon exceeding the stock market valuation of the X5 Retail Group. It is noteworthy that the revenue of the companies for 2020 differs by more than 10 times. Moreover, Ozon did not plan to pay dividends in the near future. In fact, the company was given a truly huge credit of trust, which was naturally fueled by the boost of e-commerce last year.
For the Russian pharmaceutical market, 2020 seems to be the year of hype and defect. Both of these phenomena are absolute evil for all market participants, with distributors being no exception. However, wholesalers are obviously those of the few participants in the distribution system who can at least try to turn the situation to their advantage. Their opportunities here are quite extensive, ranging from demanding prepayment to imposing products that are not in demand, etc. This approach, well tested in the last years of the Soviet economy, found application in the new market realities, although it was mostly local in nature.
In 2020, Russian manufacturers produced RUB 534.3 bln worth of pharmaceutical drugs (manufacturer’s prices, VAT included), which is in monetary terms (rubles) 25.6% higher than in 2019. The positive growth rates have been maintained for the second year in a row; it was +26.6% last year. The production volume in physical terms (units) amounts to 4.87 bln units, with the growth rate of +4.3%. If calculated in minimum dosage units (MDU), the growth rate is remarkably higher (+5.9%) and the production volume is 81.9 bln MDUs.
2/16/2021 Survey by RNC Pharma and Medvestnik: 82% of Russian Doctors Not Yet Ready to Take Reasonable Risks when Providing Medical Care
44% of Russian doctors are ready to take reasonable risks only if their work is assessed by an independent panel of experts, according to a survey conducted by the RNC Pharma analyst company and the platform for doctors Medvestnik.
In 2020, the sales of veterinary drugs in the Russian retail market amounted to RUB 20.3 bln (retail prices, VAT included), which is in monetary terms (rubles) 0.2% lower than in 2019. The growth rate in physical terms (in minimum dosage units, MDU) is -3.4%, with the market volume of 191 bln MDUs.
Between January and September 2020, the total volume of online sales or reservation of medicinal products (pharmaceutical drugs and parapharmaceuticals) in Russia amounted to RUB 95.2 bln (end-user prices, VAT included), which is nearly 9.2% of the market volume. The e-commerce segment in this ranking is represented only by organizations selling medicinal products on a regular basis; these volumes do not include the revenue of gray online businesses supplying original drugs to Russia from other countries, as well as services selling generics unregistered in Russia.
12/25/2020 Analysis of Intersections Occurring when Pharmacies Cooperate with More than One Pharmacy Association (Q1 – Q3 2020)
While working with pharmacy associations, manufacturing companies and therefore, customers of marketing activities will inevitably have to face the following issue: some pharmacies cooperate with more than one association, which leads to the duplication of sales in the accounting reports. That, in turn, leads to the problem of fair settlements with associations, which could then result in incorrect planning and accounting distortion between different departments, as well as bring complications when assigning tasks to medical representatives, etc.