FUTURE SCENARIOS
Consistent growth also expected for the next 5 years. The subsequent stabilization should continue to record sustained levels
Russia is becoming one of the new frontiers for international pharmaceutical groups. And not just for the global drug battleships. Even for many groups that in global comparison can be defined as medium-sized. And the case of Nycomed, a Swedish group with a Swiss branch, offers an interesting reading of what is happening on the Russian market.
Nycomed is present in many segments but its key products, from a sales point of view, are in the areas of gastroenterology, neurology, osteoporosis. In 2007, the group achieved a total turnover of 3.5 billion euros. Controlled by a patrol of investors, among which the private equity funds Nordic Capital and Csfb Alternative Capital stand out, the group first grew internally, then made a leap through the integration of Altana Pharma.
«We consider ourselves a strong group in Europe - says Hakan Bjorklund, Chief executive officer of Nycomed - albeit with a global presence. Now we would like to strengthen our already good position on traditional markets, but at the same time looking with great attention to some emerging areas, including above all Russia/Cis, Asia, Latin America». An attention which, as far as Russia in particular is concerned, has so far been widely reciprocated. The group's figures confirm this: in 1999 Nycomed achieved sales of 11 million dollars on the Russian market, today it records 500 million. Applying the current exchange rate, in practice the figure went from 7 million euros to 320 million euros in less than nine years.
The group estimates that the Russian pharmaceutical market could grow at a steady pace over the next five years, at a rate of around 30% per year. Then a relative stabilization could come, but always at fairly high levels. There are three main elements which are giving great speed to Russia in this sector: the accentuation of economic growth; some improvements in the national health system; the overall development of health expenditure.
But Recordati, the Italian pharmaceutical group, has also decided to follow the same path without hesitation. In 2007, the group led by Giovanni Recordati achieved a total turnover of over 628 million euro and is active above all in the cardiovascular and genitourinary segments. Having concretely verified the potential of sales in Russia, the group has accelerated its pace and acquired in recent months the French Fic Médical, a distribution company well present on the Russian market and on other former USSR markets. Recordati's estimates on the growth rate of the pharmaceutical sector in Russia essentially coincide with those of Nycomed: in the last five years the rate was 25% and in the next few years it could be even higher, at least for a series of core products. Lino Terlizzi Il Sole 24 Ore of 01/07/2008 WORLD p. 23
