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Pharmaceutical exports from India

Russia has invited Indian bio-technology firms, especially those in the small and medium category, to set up joint ventures. Russian biomedical company Diod plans to spend $5 million of the proceeds from the IPO on building a pharmaceutical plant in India in 2011 together with India's Aurobindo Pharma.

Prof Raif laid special emphasis on Pharma development, which is a priority segment for Russia. “In the last five years, the Russian Pharma industry grew from $4 billion to $15 billion and is expected to touch $ 60 billion by 2020. They want Indian companies to set up businesses in Russia for the development of new Pharma products, not only for the Russian and Indian markets, but also for other neighbouring markets. The new Russian regulation policy for the Pharma industry, adopted later this year. The new policy seems to make the process of foreign companies establishing units in Russia much easier.

On agri-biotech, Prof Raif said Russia was in the process of inviting foreign technology for processing of food grains, an area where the country was relatively lagging. “We have a surplus of 20 to 30 million tonnes of grain for export, but lack of proper technology and logistics is a challenge. We would welcome Indian expertise in this area,” he said. In the bio-technology sector, India holds a two per cent global share, with the bio-pharma industry, valued at $ 5.2 billion, registering a 14.25 per cent annual growth.

Top Indian pharma companies are also avidly eyeing the Russian market. India's pharmaceutical exports to Russia scaled up to $532 million in 2008 and are expected to go up substantially this year. Although the Indian pharma companies have been in business since the Soviet times, their share of the Russian market remains a little more than 5 per cent. But with the new Russian policy, the picture is going to change dramatically. Dr. Reddy’s Laboratories Ltd managed to notch up $130 mn sales in Russia in 2009, a sharp jump of 27 per cent from2008. Ranbaxy, too, has cornered a sizeable chunk of the Russian market. Indian drugs fare well in the Russian market on account of its quality and cost competiveness. “During the financial crisis, it was especially important that Indian medicines in the Russian market are inexpensive,”

“The pharmacological market is developing in Russia. It’s a growing market. Indian producers are fairly well represented here and have recommended brands. The development of the pharmacological industry in Russia is a national priority.

Russia, on its part, has prioritized the modernization of the health system and the development of pharmacology as twin strategic goals necessary for national renaissance. “The Russian market is one of the most promising and attractive for pharmaceuticals. In terms of economic growth, Russia is on a par with other countries in BRIC-MT [Brazil, India, China, Mexico and Turkey],”