Contract Manufacturing Set To Receive Boost
BMI View : With import restrictions on the horizon, we believe the pharmaceutical market dynamics are set to become attractive for contract manufacturer organisations (CMO) in Russia. The country remains one of the biggest growth opportunities for pharmaceutical companies in emerging markets and we expect Western CMO interest to rise over the next two to three years.
Contract manufacturing is set to pick up in Russia as restrictions on imports increase and contract manufacturing organisations find a niche for delivering medicines on behalf of foreign players to the local market. The Russian government's plans to increase self-sufficiency in pharmaceuticals are cultivating the market dynamics in which CMOs can thrive.
We note that several push factors are causing multinationals to localise production, enter joint-ventures or outright acquire Russian companies, notably:
Pharmaceutical Spending To Continue Long Term Growth Pharmaceutical Sales, 2010-2023