Russia. Specifics of pharma market monitoring in Russia’s largest regions
Moscow region
Moscow region, which increasingly resembles an urban agglomeration, deserves a very special attitude. When planning work in this area, an error is quite possible if Moscow region is treated like, for example, Saratov, Tula or Tomsk regions. This is an area in which some 7.2 mn people live, who can boast high income (relative to Russia’s average per capita income); it includes around ten cities with a population between 100,000 and 200,000 and is rather attractive in terms of potentially successful sales of numerous types of products, including drugs.
The drug sales in Moscow region approximated 470 mn USD in value terms and exceeded 115 mn units in real terms as of the end of H211.
It would be feasible to segregate within Moscow region four territorial blocks which are relatively similar in terms of their economic and socio-demographic indicators. Among them, the biggest share of drug sales in value terms (35%) falls on the Northern block [1] of Moscow region (including the cities of Korolyov, Khimki, and Mytishchi) and the smallest share (18%) — on the Southern block (including Podolsk) (Fig. 1).
Figure 1.
Moscow region, which increasingly resembles an urban agglomeration, deserves a very special attitude. When planning work in this area, an error is quite possible if Moscow region is treated like, for example, Saratov, Tula or Tomsk regions. This is an area in which some 7.2 mn people live, who can boast high income (relative to Russia’s average per capita income); it includes around ten cities with a population between 100,000 and 200,000 and is rather attractive in terms of potentially successful sales of numerous types of products, including drugs.
The drug sales in Moscow region approximated 470 mn USD in value terms and exceeded 115 mn units in real terms as of the end of H211.
It would be feasible to segregate within Moscow region four territorial blocks which are relatively similar in terms of their economic and socio-demographic indicators. Among them, the biggest share of drug sales in value terms (35%) falls on the Northern block [1] of Moscow region (including the cities of Korolyov, Khimki, and Mytishchi) and the smallest share (18%) — on the Southern block (including Podolsk) (Fig. 1).
Figure 1.
In order to segregate the territorial units deserving special attention within Moscow region above blocks/directions should be further divided. Let us review 10 cities in which the drug sales in value terms account for 31% of the aggregate sales in Moscow region (Fig. 2).
Figure 2.
The highest drug sales both in value and real terms among Moscow region cities were demonstrated by Mytishchi. In Balashikha and Khimki, which have comparable population numbers, drug sales in H211 were nearly twice lower. This is probably due to different per capita incomes, which, by all means, should be taken into account when planning drug sales in those cities. For example, it might be feasible to promote drugs falling into the higher price range in Mytishchi but those within the average and below average ranges — in Balashikha and Khimki.
The distribution of sales in accordance with the ATC groups showed that in all the territorial units the first line is occupied by Group R05 “Cough and cold preparations” that has a 6-7% market share, depending on the city (Table 1). There are a few more groups in a high demand, such as R01 “Nasal preparations”, M01 “Anti-inflammatory and anti-rheumatic products”, G04 “Urologicals”, and A07 “Antidiarrhoeals, oral electrolyte replacers and intestinal anti-inflammatories”.
Table 1. ТОР5 ATC groups [2] by sales in value terms (USD) in Moscow region detailed to bricks, July -December 2011
An analysis of trademarks most frequently sold in the out-of-pocket segment, detailed to the cities of Moscow region, shows the differences in consumer preferences: there are cities in which Arbidol is the leader, while in others the top position has been won by Nurofen, Essentiale, Nimesil, and Actovegin (Table 2).
Table 2. Table 2. ТОР10 TM’s by sales in value terms (USD) in Moscow region detailed to bricks, July -December 2011 - download here
The ТОР10 corporation list, composed of drug sales leaders (in value terms) of Moscow region, includes nine foreign companies (Table 3). Pharmstandard is the only local manufacturer which occupies an uncontested third position with a 4.3% market share in value terms. This is largely due to just one drug, Arbidol, being the sales leader in several cities.
Table 3. ТОР10 corporations by sales in value terms (USD) in Moscow region detailed to bricks, July—December 2011 - download here
The average price of a conventional drug unit varies from 6 USD in Krasnogorsk to 3.6 USD in Elektrostal (Fig. 3). More than 60% of the drugs sold have a price within the average price range, i.e. between 3 and 20 USD. The share of drugs cheaper than 3 USD equals 14-16% in the cities where the average price of a conventional unit is 4 USD or below.
Summary: An analysis of major territorial units detailed to smaller bricks has enabled us to identify several unique characteristics of each area. Where such characteristics are taken into account, the planning and auditing of drug sales will be efficient. This approach is especially essential for the analysis of areas boasting higher per capita income and larger population (e.g. such as Moscow region).
Source: Pharmexpert
Figure 2.
The highest drug sales both in value and real terms among Moscow region cities were demonstrated by Mytishchi. In Balashikha and Khimki, which have comparable population numbers, drug sales in H211 were nearly twice lower. This is probably due to different per capita incomes, which, by all means, should be taken into account when planning drug sales in those cities. For example, it might be feasible to promote drugs falling into the higher price range in Mytishchi but those within the average and below average ranges — in Balashikha and Khimki.
The distribution of sales in accordance with the ATC groups showed that in all the territorial units the first line is occupied by Group R05 “Cough and cold preparations” that has a 6-7% market share, depending on the city (Table 1). There are a few more groups in a high demand, such as R01 “Nasal preparations”, M01 “Anti-inflammatory and anti-rheumatic products”, G04 “Urologicals”, and A07 “Antidiarrhoeals, oral electrolyte replacers and intestinal anti-inflammatories”.
Table 1. ТОР5 ATC groups [2] by sales in value terms (USD) in Moscow region detailed to bricks, July -December 2011
An analysis of trademarks most frequently sold in the out-of-pocket segment, detailed to the cities of Moscow region, shows the differences in consumer preferences: there are cities in which Arbidol is the leader, while in others the top position has been won by Nurofen, Essentiale, Nimesil, and Actovegin (Table 2).
Table 2. Table 2. ТОР10 TM’s by sales in value terms (USD) in Moscow region detailed to bricks, July -December 2011 - download here
The ТОР10 corporation list, composed of drug sales leaders (in value terms) of Moscow region, includes nine foreign companies (Table 3). Pharmstandard is the only local manufacturer which occupies an uncontested third position with a 4.3% market share in value terms. This is largely due to just one drug, Arbidol, being the sales leader in several cities.
Table 3. ТОР10 corporations by sales in value terms (USD) in Moscow region detailed to bricks, July—December 2011 - download here
The average price of a conventional drug unit varies from 6 USD in Krasnogorsk to 3.6 USD in Elektrostal (Fig. 3). More than 60% of the drugs sold have a price within the average price range, i.e. between 3 and 20 USD. The share of drugs cheaper than 3 USD equals 14-16% in the cities where the average price of a conventional unit is 4 USD or below.
Source: Pharmexpert
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