API production in Russia: scarce but slowly developing - July 2011

Over the past few years a trend toward slow development has been observed on the part of producers of pharmaceutical substances in Russia. Domestic manufacturers of substances have not only resumed production but also broadened the range of manufactured substances. However, API production in Russia is still not a particularly substantial component of the business of pharmaceutical companies. It has been estimated that only 15% of API consumed in Russia are produced on the domestic market, according to the latest PMR Publications report “Pharmaceutical contract manufacturing and API sourcing in Russia, Ukraine and the Baltic States 2011”.

After 1991, production of pharmaceutical substances in the Russian Federation was reined in because of the limited profitability of the produce, in addition to the abolition of tax allowances for manufacturers of medicines. At present, most of the market is accounted for by substances made by Chinese and Indian producers.