Reduction in the number of newly established pharmaceutical firms in Russia observed
In the Russian pharmaceutical industry, a significant decline in new company registrations has been observed from 2023 to 2025. This drop might indicate market maturity, according to the Ministry of Industry and Trade.
Despite this trend, the pharmaceutical market in Russia has continued to show steady growth in total revenue over the past three years. In 2022, the industry earned a total of 647.7 billion rubles, which increased by 4.96% in 2023 to reach 679.8 billion rubles. The following year, in 2024, the industry saw a more substantial growth of 20.90%, bringing the revenue to almost 821.9 billion rubles.
Several factors could contribute to the decrease in new registrations. One such factor is the challenging economic and trade environment in Russia, due to sanctions and geopolitical tensions, which may deter new companies from entering the market due to increased operational risks and costs.
Another factor could be the reduction in drug imports, indicating difficulties in accessing foreign markets or a shift towards domestic production. This could impact the willingness of new companies to register, especially those that heavily rely on imports.
Changes in government procurement might also reduce incentives for new companies to enter the market. A decrease in state purchases of drugs could be a significant factor, as it could affect both existing and new companies.
The pharmaceutical market in Russia saw a slight decrease in volume in 2023, with a 0.3% decline in rubles compared to the previous year. This decline could be attributed to reduced imports and government procurement, reflecting the challenges faced by both existing and new companies.
However, there might be opportunities for domestic players to fill gaps in the market, potentially stabilizing or even increasing revenue for companies that can adapt and produce locally.
It's important to note that the analytics covers companies that operate under several OKVED codes denoting pharmaceutical activity, including "Production of pharmaceutical substances", "Production of medicinal products", and "Production of materials used for medical purposes". As of July 2025, there were 59 companies with foreign participation in the Russian pharmaceutical industry, with new entrants from India, China, and the United Arab Emirates.
While some companies have left the market, they were essentially inactive as their revenue was 0%. The number of liquidations has decreased over the past two years, with 48 liquidations from January to July 2025, compared to 71 in the first half of 2022.
The peak of registrations in the last two years was in the first half of 2023, with 70 new companies registered. Analysts attribute this increase in activity to localization of production, state support, and the need to expand the range of domestic medications.
In conclusion, while the reasons for the decrease in new pharmaceutical company registrations in Russia are not definitively known, economic and trade conditions, import reductions, and changes in government procurement are potential factors that could contribute to this trend. Despite the challenges, the pharmaceutical industry in Russia continues to show growth, with opportunities for domestic players to adapt and thrive.
[1] Economic and Trade Conditions: https://www.reuters.com/world/europe/russia-economy-contracts-sharpest-pace-two-years-2022-07-14/ [2] Import Reductions and Government Procurement Changes: https://www.rns-group.co.uk/news/russia-pharmaceutical-market-trends-and-forecasts-2022-2026/ [4] Impact on the Overall Industry Revenue: https://www.statista.com/statistics/1204675/russia-pharmaceutical-market-revenue/
In light of the challenging economic and trade conditions in Russia, new investments in the pharmaceutical industry might be hesitant due to increased operational risks and costs. (economic and trade conditions, finance, investing, business)
Despite the decline in new company registrations, the Russian pharmaceutical market nevertheless demonstrates impressive growth, with opportunities for domestic players to adapt and thrive by filling gaps in the market. (industry, growth, business)
