Contract pharmaceutical manufacturing sites in Russia are very relevant

A round table on Contract Manufacturing of Pharmaceutical Products was held on November 22, 2017, at Pharmtech & Ingredients 2017, the 19th international exhibition of equipment, raw materials and technologies for pharmaceutical manufacturing.

The event moderator was Alexander Kuzin, the General Director at NovaMedica. In his opening remarks, he outlined the relevance of contract manufacturing in Russia.

The next speaker was Anna Plesovskikh, the Head of External Communications Department at SID & GP. She presented the review of the contract manufacturing in Russia in the first six months of 2017 prepared by the Department for Economics and Analysis of Pharmaceutical and Medical industry of SID & GP.

“Today, the contract manufacturing (by using the outsourced production capacities under the conditions agreed for the full compliance with technology and product quality control of the customer) is an important element of cooperation. In ex warehouse prices, its output is worth about 23 billion rubles. Moreover, 80% are the orders of foreign companies for contracting their manufacturing to the Russian production sites. The remaining 20% account for collaboration of Russian companies with domestic players”, said Anna Plesovskikh. “On the corporate level, in H1 2017, 67 foreign companies contracted the manufacturing of their drugs to 31 production sites in Russia. The share of top five companies is 62%, which is a good figure, but it is not as high as the similar indicator for the companies hosting the contract manufacturing (85% of the output comes from the top five). This means that, currently, the demand exceeds the supply. However, there are alternatives, such as buying an existing company or building a production facility from the scratch. In H1 2017, almost 20% of the output came from localized products, out of which one third was manufactured by the companies using their own production capacities in Russia.”