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1
Russian Retail Pharma Sector Tendencies
Future Forecasts
Speaker Alexander Kuzin General Director, DSM
Group March 29, 2007
2
Pharmacy market value
Source DSM Group Monthly retail audit of the
Russian pharmaceutical market QMS meets ISO
90012000 requirements
3
Commercial drugs market growth is due to
changing in consumption structure towards
expensive drugs
Source DSM Group Monthly retail audit of the
Russian pharmaceutical market, QMS meets ISO
90012000 requirements
4
Russian economy 1 (one) trillion dollars in 2007
1998 2004 2005 2006 2007 F
GDP, billion 306 589 762 980 1173
GDP growth rate, -5,3 7,2 6,4 6,7 5,8
Share in GDP of 1990, 58,5 86,7 91,9 98,4 104,2
Inflation, 84,4 11,7 10,9 9,0 8,0
Price of Brent trademark oil, /barrel 12,8 38,3 54,4 64,9 60,0
Credit rating SP ???- BB BBB BBB ???
Russian pharma market volume, billion 4,8 6,7 9,0 12,3 14,1
Sources MERT, Goskomstat, DSM Group
5
Real growth of drug commercial segment
outpaced GDP growth rate
Source DSM Group Monthly retail audit of the
Russian pharmaceutical market QMS meets ISO
90012000 requirements
6
Pharmacy chain 36.6 is ?1 in 2006. Who will be ?1
in 2007?
Source DSM Group
7
Retail nets grow more than 3 times faster than
commercial pharmacy market
Source DSM Group
8
Nets concentration will have 3 times increased by
2010
Source DSM Group
9
A pharmacy net of 2010, leader covers 15 of
commercial market
Source DSM Group
10
Russia time axis
Pharmacy chain 36.6 0,39 billion 838 outlets
Walgreens 47,4 billion 5461 outlets
Alliance Boots 12,3 billion 2738 outlets
Revenue Outlets qty.
t
Sources DSM Group, http//www.walgreens.com, Al
liance Boots for 2005
11
Pharmacy nets pretending to NATIONAL status exist
in 42 regions
Pharmacy nets 36.6 Pervaya Pomosch Farmakor Zdo
rovye Lyudi Rila Doktor Stoletov
Regions with pharmacy nets pretending to national
status are colored
12
Pharmacy nets pretending to NATIONAL status do
not compete to each other on 90 of RUSSIA
territory
Pharmacy nets 36.6 Pervaya Pomosch Farmakor Zdo
rovye Lyudi Rila Doktor Stoletov
Regions where no nets are in TOP-5 or only one
net of pretending to national status is, are
colored
13
Nets concentration in Moscow is higher than in
Russia
Source DSM Group
14
Market shares of leading pharmacy nets in Moscow,
2006
Source DSM Group
15
Russian drugs retail market is ?10 by its volume
and ?1 by growth rate among the biggest world
markets
Russian pharmaceutical market by DSM
Group China data of 2005
Sources IMS Health, DSM Group Monthly retail
audit of the Russian pharmaceutical market.
16
The market future is in beauty and healthcare
goods
Source DSM Group
17
www.dsm.ru
Thank you for the attention!