ISA Perspectives- Russia: Localisation vs. Isolation

As 2010 drew to a close, several multinational pharmaceutical companies (MNCs) made significant investments in Russia, drawing questions from other MNCs around the value of making similar investments. While the Russian government has been resistant to explicitly specify the types of benefits offered to MNCs making these investments, it seems clear that there is an undercurrent connecting the state and industry. To explain some of the issues surrounding Russian localisation, the Global Market Access practice at ISA published a white paper on the environment and drivers for localisation.

The publication, led by Cyrus Chowdhury, Vice President of the Global Market Access (GMA) practice at Insight Strategy Advisors, explores some of the historical precedence and environmental factors influencing MNCs to make these investments in Russia.
“Russia has long been a very pro-business environment for the pharmaceutical industry. However, Moscow’s strategic imperative, Pharma2020, is likely to shift the balance of commercial power from multinationals which import their products to those which manufacture and produce pharmaceutical products in Russia,” explains Mr. Chowdhury. “If a multinational wishes to seriously pursue success in Russia, it must not just understand the pharmaceutical industry, it must also understand the political economics driving the pharmaceutical industry. The allowances on the access and pricing side of the equation have always been a bit vague, but as we see more cases of localisation-driven access, we can more clearly discern the value of localisation.”

The position paper may be viewed by following this link:
ISA Perspectives – Russia: Localisation vs. Isolation

During the next few months, Mr. Chowdhury will be sharing further implications of these ongoing developments during speaking engagements around the world, including ISPOR Europe. Interested parties can learn more about this issue by contacting Mr. Chowdhury directly at cyrus.chowdhury@insightstrat.com

ISA has an experienced multinational team of consultants in Geneva, New York, Philadelphia and Shanghai. Other practice areas include Commercial Development, Oncology & Specialty Therapeutics, and US Managed Markets.
The Global Market Access practice at Insight Strategy Advisors provides pharmaceutical and biotechnology companies advisory services for maximizing market access across the global marketplace. Engagements include, but are not limited to, pricing and market access assessments, portfolio optimization strategies, partnership due diligence, and NGO facilitation.