Belarus Pharmaceutical Industry Overview 2015

ECONOMY IN BRIEF

The Republic of Belarus is the 66th economy in the world by nominal GDP ($76.1 bn in 2014). With GDP per capita amounting $8,040 (74th in the world in 2014) (World Bank).

After the independence had been declared and Alexander Lukashenko was elected as a President of the Republic in 1994, the country chose a path of “market socialism”, meaning the government was to take control over prices and currency exchange rates. The introduction of capitalist reforms and privatization measures led to economic crisis in the middle 90s. Like the rest of the former Soviet Union countries, Belarus was characterized by a general lack of preparedness of the country’s institution and society for the market system of relations.

The Republic of Belarus is considered as a country with the economy based on raw materials. However, the country has one of the highest standards of living in the CIS region with upper-middle income level. It inherited a well-developed industrial base, broad agricultural base, and high educational level. Among the main industries in Belarus are petrochemicals, potash, foodstuffs,
timber, metal-cutting machine tools, tractors, trucks, earthmovers, motorcycles, televisions, synthetic fibers, fertilizers, textiles, radios, and refrigerators. Peat, the country’s most valuable mineral resource, is used for fuel and fertilizer and in the chemical industry. Belarus also has deposits of
clay, sand, chalk, dolomite, phosphorite, and rock and potassium salt.

PHARMACEUTICAL INDUSTRY OVERVIEW

The pharmaceutical industry is a strategically important sphere for Belarus regarding international trade, as 40% of drugs produced by local companies are exported. The pharmaceutical industry comprises production of drugs, medical devices, distribution of outputs, wholesale and retail trade. In Belarus, pharmaceutical market is conventionally divided into the retail market and hospital market. 

Like other industries in Belarus, the pharmaceutical industry is highly regulated by the government, especially regarding price regulation. The pharmaceutical industry is also among the most rentable in
country’s economy (about 19% ROI in the corporate sector).

Pharmaceutical market of Belarus rose 57.8% over the last five years (2010-2014) in values. Despite the economic crisis in 2011, which led to 3.8% market decrease, the market has been rising 12.8% on the average annually. In 2014, pharmaceutical market sales amounted to $1.1 bn (7% y-o-y), with about 71% share of foreign manufacturers.

As of 2015, drugs consumption in Belarus is at the highest level among the CIS countries after Russia, amounting $113 per inhabitant.

The full report is available here.

Source: UPharma Consulting