Indian pharmaceutical industry eyeing the Russian territory
May 14, 2013: The Indian government is looking at strengthening its ties with Russia in the pharmaceutical market.
In a bid to expand the global presence of the domestic pharmaceutical industry, the Indian government has insisted on the fact that Russia should open its doors for the Indian pharma companies. During his recent visit to St. Petersburg, the Commerce, Industry and Textiles Minister, Anand Sharma has urged the Russian Government to let Indian pharma majors forge partnerships with Russian pharma companies. In addition, the minister also asked the Russian authorities to expedite the list of 500 drugs that the country currently imports from the Indian market.
During the last visit, the Indian authorities have asked Russia to put in place a nodal agency which will be responsible for implementation of the MoU between the two countries in the pharmaceutical market. It may be noted here that the agency will primarily focus on areas like quality control and standard requirements on conformity assessment of pharmaceuticals and bio-pharmaceuticals.
For the record, the Russian pharmaceutical market has moved up from $6.6 billion in 2005 to $19 billion in 2011 growing at a compound annual growth rate of 23%. On the flip side, there are handful of non-tariff barriers that are in place especially in drugs registration and research and development of new drugs which makes it difficult for foreign companies to get a free access to this market.
As far as the progress from India is concerned, the country has already deputed The National Institute of Pharmaceutical Education and Research (NIPER) as the nodal agency from its side while Russia is yet to depute an appropriate name from its end.
The alliance is critical because India is also keen on participating in Russia’s Pharma 2020 Programme which will include setting up manufacturing facilities in the Russian market along with making the registration process streamlined and sharing information about the drugs imported by Russia and on production volumes of strategically identified medicines. It may be noted here that the bilateral trade between the two countries stood at $5.965 billion in 2011 while both sides have set a target of achieving $20 billion trade by the end of 2015.