Russian market for iv solutions

Summary Report October 2007

Parioforma Ltd

55 Princes Gate

London SW7 2PN

United Kingdom

www.parioforma.com

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61 face-to-face interviews in hospitals across Russia:

◦ Respondent breakdown:

Head of Pharmacy: 79%

Doctors/ Clinical Pharmacologists: 13%

Clinical Pharmacists: 3%

Head Nurses responsible for buying: 5%

12 interviews with top managers in Russian companies

8 interviews with distributors

8 interviews with Western companies

8 interviews with the Ministry

Parioforma Ltd – 55 Princes Gate – London SW7 2PN – United Kingdom

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Total Market: Basic solutions (by value)

$0

$20

$40

$60

$80

$100

$120

$140

2001 2002 2003 2004 2005 2006 2007 (E) 2008 (F) 2009 (F) 2010 (F) 2011 (F)

Basic solutions sales by value, mln. USD

• Estimated at ~USD $75 mln in 2006

NB: In-house production not included. Source: RMBC sales audit, Diamond-Vision import data, ex-manufacturer prices calculated assuming average wholesaler margin = 25% and VAT = 10%.Packs recalculated in litres

NB: Includes imports and domestic manufacturing but not In-house production

§ For a list of solutions included under each heading see appendix



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Total Market: Basic solutions (by volume)

0

10

20

30

40

50

60

2001 2002 2003 2004 2005 2006 2007 (E) 2008 (F) 2009 (F) 2010 (F) 2011 (F)

Sale

s in

mln

lit

res

$0.0

$0.5

$1.0

$1.5

$2.0

$2.5

Ex-m

an

ufa

ctu

rer

pri

ce in

US

D

Basic solutions sales by volume, mln. litres

Basic solutions price per litre, USD

NB: In-house production not included. Source: RMBC sales audit, Diamond-Vision import data, ex-manufacturer prices calculated assuming average wholesaler margin = 25% and VAT = 10%.Packs recalculated in litres

Equivalent price per litre used



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DRIVERS: RESTRAINERS:

• Substitution of hospital in situ

production

• Change of medical practice

• Price increases

• Increased volumes of more expensive

commercially produced solutions

• Expanding economy

• Hospitals financially constrained

• Infusion solutions under-funded

• Variations in funding

• Lack of market education



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0

5

10

15

20

25

30

35

40

45

2004 2005 2006

Mln

s, litr

es

Domestic Basic Solutions

Imported Basic Solutions

Source: RMBC sales audit, Diamond-Vision import data, ex-manufacturer prices calculated assuming average wholesaler

margin = 25% and VAT = 10%.Packs recalculated in litres

• Market for basic solutions is dominated by domestically manufactured solutions



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38% of hospitals interviewed continue to produce infusion solutions in-

house

The bulk of production is composed of NaCl and glucose (~80%)

Main reason for the decline in in-hospital production is the increasing

restrictions by RosZdravNadzor

The majority of respondents agreed that in-hospital production would

continue to decline over the next 5 years

Respondents noted that the decline in in-house production will be

accompanied by a switch to manufactured solutions



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• Most infusion solution sales go through hospital tenders

• Pharmacy sales are direct patient purchases

Source: RMBC sales audit, expert opinion

Pharmacy vs. Hospital Sales of Basic IVs in

mln litres 2006

19%

81%

Through pharmacy sales

Through hospital sales

Pharmacy vs. Hospital Sales of Plasma

Expanders in mln litres 2006

32%

68%

Through pharmacy sales

Through hospital sales



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• Cheaper to utilise polymer line (for

new entrants)

•Transportation of glass costly and

complicated

• Special features

• More convenient to use

• Rigid plastic replicates the form of

glass

• Preference for glass persists

• Glass recycled for in-house

production

• Majority of domestic players continue

to offer glass

• Upfront unit cost

• Poor quality of domestically produced

PVC



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200ml and 400ml dominate

Source: RMBC sales audit, Diamond-Vision import data, RMC/Aston estimates

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2004 2005 2006 2007 (F) 2008 (F) 2009 (F) 2010 (F) 2011 (F)

100 ml

1000 ml

500 ml

250 ml

400 ml

200 ml



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Source: RMBC sales audit, Diamond-Vision import data, ex-manufacturer prices calculated assuming average wholesaler margin = 25% and VAT = 10%.Packs recalculated in litres

Total market: Plasma Expanders

$0

$5

$10

$15

$20

$25

$30

$35

$40

$45

$50

2001 2002 2003 2004 2005 2006 2007 (F) 2008 (F) 2009 (F) 2010 (F) 2011 (F)

Plasma Expanders sales by value, mln. USD

*

• Estimated at ~$23 mln in 2006



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• Increased financing of hospitals

• Increasing complexity of surgeries

• Developing private healthcare

• Heavy investment in sales &

marketing of branded product

manufacturers

• Financial constraints


• Price sensitivity

• Market education required



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0

1

2

3

4

5

2004 2005 2006

Mln

s L

itre

s

Domestic Plasma ExpandersImported Plasma Expanders

Source: RMBC sales audit, Diamond-Vision import data, ex-manufacturer prices calculated assuming average

wholesaler margin = 25% and VAT = 10%.Packs recalculated in litres

• Domestic solutions dominate by volume

• Market moving in favour of imported solutions by value - reflecting marketing efforts

$0

$5

$10

$15

$20

$25

2004 2005 2006$ M

lns

Domestic Plasma ExpandersImported Plasma Expanders



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200ml and 400ml dominate

Source: RMBC sales audit, Diamond-Vision import data, RMC/Aston estimates

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2004 2005 2006 2007 (F) 2008 (F) 2009 (F) 2010 (F) 2011 (F)

100 ml

450 ml

250 ml

500 ml

200 ml



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Premixes are used rarely

Novocaine was the most frequently purchased ready-mixed solution by study respondents

The second most frequent class was anti-infectives/ anti-bacterials


• Increased financing of hospitals

• Safety

• Time efficiency

• Developing private healthcare

• Financial constraints

• Limited availability


• Price

• No market education



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Basic Solutions

Sodium Chloride

Dextrose

Ringer’s Acetate/ Quintasol

Ringer’s solution

Mannitol/ Mannit

Hartmann’s Solution

Acesolum

Disolum

Trisolum

Chlo-salt

Mafusol

Sodium Bicarbonate

Calcium Chloride

Potassium Chloride

Plasma Expanders

Starches 6%/ 10%

Dextrans

Gelatins

Polyvinylpyrrolidon (PVP)

NB: Blood products were outside the scope of the study



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Parioforma Ltd. is an international business consultancy founded in 2005 and

headquartered in London, UK.

For further information or to discuss your needs please contact us…

LONDON OFFICE ASSOCIATE OFFICES

Contact: Charles Rowlands

[email protected]

55 Prince’s Gate

Exhibition Road

London SW7 2PN

United Kingdom

Tel: +44 (0) 7803 907577

www.parioforma.com

USA Intrix Corp, Darien

Connecticut

Eastern

Europe Vanguard, Moscow

Brazil Intrix Corp, São Paulo

Japan TRN, Tokyo


mailto:[email protected]


Russian market for iv solutions

Health & Medicine

Transcript of Russian market for iv solutions