Research and Markets: Growth Prospects and Emerging Opportunities in the Russian Healthcare Industry

DUBLIN--()--Research and Markets (http://www.researchandmarkets.com/research/324b07/economic_360_for_r) has announced the addition of Frost & Sullivan's new report "Economic 360 for Russia: Growth Prospects and Emerging Opportunities in the Russian Healthcare Industry" to their offering.

Despite having numerous hospitals, clinics and highly qualified medical personnel, the quality of public services and their accessibility has remained low in Russia. This is due to a continued lack of funds, medical and technical equipment and supplies as well as ineffective organisation. The incompetence of the public sector healthcare service providers has led to people opting for private healthcare. During 2004-2010, paid medical services increased by 81.0 per cent and public services only by 16.0 per cent. These statistics indicate that while market demand is escalating, the public sector has been unable to meet the needs of the patients. Russia has a high incidence of diseases and fatal accidents; therefore, life expectancy in the country is lower than in western European countries. This low health index creates a vast and favourable market for private medical clinics and hospitals, and could lead to a 14.0 per cent annual growth of paid medical services in 2011-2014.

The rising demand for healthcare has given a huge boost to the pharmaceuticals sector, and has revived the sectors of clinical trials, biotechnology and medical devices. The pharmaceuticals sector was worth $16.40 billion in 2010 and its compound annual growth rate (CAGR) during 2004-2014 is likely to be 13.9 per cent. Although it is not as advanced as the ones in Western Europe, it is expected to grow on the back of the Government's strong support of domestic production through the Pharma 2020 programme. An improved chain of distribution of medicines and better regulations will aid Russia's battle against counterfeiters. Meanwhile, the biotechnology sector was valued at $1.60 billion in 2010 and is poised to perform even better. In 2004-2009, Russia's share in the world biotechnology market was 0.2-0.8 per cent and showed no increase, defying the global trend. Participants should focus on the potential growth areas of bio-safety, bio-diversity, renewable and bio-catalysis, bio-nanotechnology and genetic engineering.

In 2009, 577 clinical trials were conducted in Russia. By 2010, the clinical trials sector had reached 624 trials, an increase of 7.5 per cent. The sector will benefit from the growth in the pharmaceuticals sector. The demand for medical equipment and devices is expected to grow at a CAGR of 4.6 per cent from 2004 to 2014. The medical devices and equipment sector has generated $3.27 billion from sales in 2010 and grown by 25.0 per cent from 2009. It is estimated to grow at an impressive rate of 19.0 per cent annually until 2014. Almost half of the total market revenues in 2010 were derived from diagnostic equipment such as roentgen devices, angiographs, computer tomographs, magnetic tomographs and ultrasounds. Most of the modern medical equipment is imported, but the Government is looking to increase domestic production in co-operation with foreign investors. In 2009, only 20.0 per cent of the Russian hospitals possessed modern IT systems. The majority of clinics had IT systems supporting accounting and HR departments as well as collecting statistical data; however, this is just a base for implementing complex IT systems. The Government's e-health project is likely to catalyse higher demand for healthcare IT, which reached $240.0 million in 2010 and continues to grow.

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Laura Wood, Senior Manager,
press@researchandmarkets.com
U.S. Fax: 646-607-1907
Fax (outside U.S.): +353-1-481-1716

Contacts

Research and Markets
Laura Wood, Senior Manager,
press@researchandmarkets.com
U.S. Fax: 646-607-1907
Fax (outside U.S.): +353-1-481-1716