PM flags investment pill for pharmaceutical and medical sector
Speaking at Khimki, near Moscow, the Russian Prime Minister outlined a 10 year development program which will need 185 billion roubles with the government agreeing to finance 66% or 123 billion roubles from the budget, and the rest to be attracted from the corporate sector.
Putin added that the program follows state modernization plan and would increase the share of the market taken by Russian production.
“The program should be worked out together with the Ministries as quickly as possible, as one of our top modernization industry plans with concrete objectives and ways of implementation to get the ball rolling with out any unreasonable postponements.”
By 2020 Russian pharmacy producers will have 50% of the pharmaceutical market and 60% of the medical equipment industry according to Industry and Trade Minister, Victor Khristenko, adding that it would be a major boost for the domestic sector.
“According to the year results the Russian pharmaceutical market should reach 555 billion roubles and medical equipment market is close to 110 billion rubles share, but the share of domestic producers at the same time is extremely small – only 22% and 17% respectively.”
Health Minister, Tatyana Golikova noted that the volume of domestic products in the pharmaceutical Russian market has been growing during 2010.
“69% of the most essential for life medicine has been produced in Russia comparing with 67% of last years production.”
The pharmaceutical state development program is divided into 7 stages. The development of scientific and technical potential of the pharmaceutical industry with a total budget of 11 billion roubles will be financed by the state and investors in equal proportion. Nevertheless, such projects as the development of medical industry innovation potential including production of high-tech diagnostic equipment, innovative biomaterials for medical devices with a total budget of 11.7 billion roubles will be 60% financed from the budget.
The government is looking to establish conditions for technological development and innovative industry Ivan Glushkov General Director Stada CIS pharmaceutical company says that currently this area has little practicality.
"The reason why the government eases private business participation in financing of technological development and innovative potential is because it needs to be set up first with favorable conditions and competitive demand. As soon as we have all this conditions business will launch its own funds and projects in this sector”