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Development trends of the Russian pharmaceutical market

Sherstobitova T.I. Penza State University, Penza, Russian Federation ( )

Smorchkova E.D. Penza State University, Penza, Russian Federation ( )

Journal: Economic Analysis: Theory and Practice, #7, 2018

Importance New market conditions call on pharmaceutical product manufacturers to improve classical approaches to the promotion of over-the-counter (OTC) pharmaceuticals, products for healthy lifestyle, and to develop new approaches.
Objectives The purpose of the study is to identify development trends in the Russian pharmaceutical market, including the market of nutritional supplements and other OTC products, opportunities of the Russian enterprises in these markets, to reveal factors having a positive and negative impact on the pharmaceutical industry.
Methods We employ methods of observation, analysis of statistical data, PEST analysis to determine major trends in the market, review of literary sources and materials from the Internet, as well as comparison.
Results We reveal and analyze trends and major factors of the pharmaceutical market development in four spheres: technological, political, legal and demographic. The analysis highlighted the factors that have a positive and negative impact on the pharmaceutical industry. The pharmaceutical industry enterprises can consider environmental factors for their successful functioning in the market.
Conclusions Positive trends in the pharmaceutical market development include popularization of healthy lifestyle, possibility to attract additional sources of financing by pharmaceutical production manufacturers, high development of technologies in this field. Negative factors include consolidation of the pharmaceutical industry leading to reduced profitability of producers, significant decrease in the sales volumes of Russian producers, and freezing of investments in this area. To reduce the impact of negative factors, it is important to use modern tools of promotion taken together and periodically monitor new opportunities.

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