Slide1: Russian Pharma Market in 2005 & 1st Q 2006 Main Tendencies & Forecasts Yuriy Krestinskiy PHARMEXPERT Market Research Center


Slide2: Russian Pharma Market Infrastructure in 2005* Foreign manufacturers 475 Domestic manufacturers 410 Out patient clinics 22 400 Hospitals 10 200 Wholesalers 1 100 Drugstores’ kiosks 35 000 Drugstores 22 500


Slide3: Monitoring of Drugs Retail Sales and Hospital Drugs Procurements in Russia, Monitoring of State Reimbursement Program; Pharmexpert – Market Research Center Number of different Medicaments’ Categories in Russia in 2003-2005


Slide4: Russian Market Value in three types of prices in 2003-2005 * VAT is incl Pharmexpert estimation


Slide5: Russian Pharma Market Value in 2003 – 2005* Consumer prices, VAT is incl. Pharmexpert estimation 5.5 bln USD 6.35 bln USD 8.37 bln USD 15% growth 32% growth


Slide6: Russian Pharma Supply Value in 2005 & 1st quarter 2006 Statistic Committee, Pharmexpert VAT & taxes are not included


Slide7: The procedure of the Russian pharmaceutical market volume calculation for main levels of the distribution network export +unaccounted export ~10% unaccounted supply ~7% Market Value in consumer prices Domestic production unaccounted by official statistic pharmaceutical domestic manufacturers ~20% + Import Supply Hospitals Aver. distribution markup ~34% Wholesaler Retail Aver. distribution markup ~25% average retail markup ~30% aver. manufactures discount ~ 15% 3rd level manufacture of substances ~ 7% of statistical volume of the produced pharmaceuticals in bulk ~ 5% of the import volume Aver. customs duty 10% Market Value in distributors prices 2nd level 1st level Market Value in manufacture prices + - - + + Credit notes ~ 5% of the import volume Expert estimations Statistics


Slide8: ` Market value of one quarter consists of sales of sales of products, supplied to the market during previous 12 quarters Distribution model Pharmexpert estimation


Slide9: Sales & Stocks on the Russian Pharma Market in 2006 Year of products origin Pharmexpert estimation Taxes & VAT are not included Ex-manufacture prices


Slide10: Stocks on the Russian Pharma Market in 2004-2006 Pharmexpert estimation Taxes & VAT are not included Ex-manufacture prices


Slide11: Russian Market Value in three types of prices in 1st quarters 2004-2006 * VAT is incl Pharmexpert estimation


Slide12: Drug Consumption per capita in Russia in 2001-2006* **forecast DLO is included Pharmexpert estimation VAT is incl


Slide13: Drug Consumption per capita in Russian Regions in 2005* Pharmexpert estimation VAT is incl In USD


Slide14: MS of all compensative Programs in the total Value of Russian Pharma Market in 2005-2004 (USD) MS of State compensation programs (in USD) In consumer prices, VAT is included 2004 2005 MS Growth 26,6% Pharmexpert estimation


Slide15: Out of pocket 64% 17% 3 % 9% Retail Market 7% Hospital Market Federal Reimbursement Program Regional Financing 12% Federal Financing 24% Market value = 100% Pharma Market Financing Structure in 2005 – - the 1st quarter 2006 Pharmexpert estimation


Slide16: Average Price per One Drug Unit in USD in 2003-2005 Monitoring of Drugs Retail Sales and Hospital Drugs Procurements in Russia, Monitoring of State Reimbursement Program; Pharmexpert – Market Research Center


Slide17: MS (% from USD) of Generics and Innovative Drugs On the Russian Pharma Market in 2005 MS (% from USD) of Generics and Innovative Drugs In Different Pharma Market Segments in 2005 MS in Commercial Segment (%) MS in Hospital Segment (%) MS in State Reimbursement Programe (%) Import 85 % Domestic 15% Innovative drugs – 100% Generics Innovative * Innovative drugs: INN is under patent protection Pharmexpert estimation


Slide18: OTC & Rx MS (%) – Value Terms in different Market Segments in 2005 Monitoring of Drugs Retail Sales and Hospital Drugs Procurements in Russia, Monitoring of State Reimbursement Program; Pharmexpert – Market Research Center


Slide19: OTC & Rx MS (%) – Volume Terms in different Market Segments in 2005 Monitoring of Drugs Retail Sales and Hospital Drugs Procurements in Russia, Monitoring of State Reimbursement Program; Pharmexpert – Market Research Center


Slide20: Import & Domestic MS (%) – Value Terms in different Market Segments in 2005 Monitoring of Drugs Retail Sales and Hospital Drugs Procurements in Russia, Monitoring of State Reimbursement Program; Pharmexpert – Market Research Center


Slide21: Import & Domestic MS (%) – Volume Terms in different Market Segments in 2005 Monitoring of Drugs Retail Sales and Hospital Drugs Procurements in Russia, Monitoring of State Reimbursement Program; Pharmexpert – Market Research Center


Slide22: TOP 15 MS % Pharmaceutical Corporations on the Russian Pharma Market in 2005 * Market Growth – 32% Monitoring of Drugs Retail Sales and Hospital Drugs Procurements in Russia, Monitoring of State Reimbursement Program; Pharmexpert – Market Research Center


Slide23: TOP 10 Russian Pharma Wholesalers in 2005 Protek = 1,988 bln USD ** direct delivers to pharmacies and hospitals


Slide24: TOP 10 Russian Pharmacy Chains in 2005 36,6 = 100% 36,6 general value = 198 mln USD


Slide25: In consumer prices VAT is included Russian Pharma Market Forecast **forecast ? Pharmexpert estimation


Slide26: www.pharmexpert.ru