Pharmaceutical production: features, trends, investment

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Without exaggeration, we can say that providing citizens with medicines and preparations is an important component of the national security of the state. And pharmaceutical production is the most important socially significant sector of the economy.

Government Support

Today, the social significance of such products as pharmaceuticals, the production of which is established in our country, has reached such a level that the government is forced to pay serious attention to projects involving the development of this industry. It should be noted that in recent years a number of policy documents have been adopted that contribute to the organization and development of production, including pharmaceutical substances, but the situation in this area still does not inspire optimism, and here's why.

Important features of the industry

Pharmaceutical production has its ownpeculiarities. They are represented by:

• high science-intensive products;
• significant duration of the process of developing new drug components, as well as related drugs;
• long life cycle of drugs, including all stages - development, production and sale of products;
• character, as well as the duration of the production cycle required for the production of finished products;
• a wide variety of types of technological processes that are used in such an area as the production of pharmaceutical substances;
• large variety of raw materials and materials, as well as equipment used in the production cycle;
• multi-stage technological processes.

Investing

From the point of view of a potential investor, the production of pharmaceutical products has a number of distinctive features. And the main negative points that you should pay attention to look like this:

1. Higher investment attractiveness of the production of finished products, that is, drugs, in comparison with the production of medicinal substances. This trend was formed under the influence of modern economic conditions. The explanation for this fact can be the high material and energy intensity of the production of standardized semi-finished products, which led to a decrease in the profitability of their production, and sometimes to unprofitability of such production.
2. The recent increase in the cost of material resources, which caused a significant increase in the costsubstances produced in our country. The consequence of this is an increase in prices for them to a level exceeding the world level. Such trends have resulted in pharmaceutical manufacturing being unable to offer competitive products.
3. Providing foreign manufacturers with easy access to the pharmaceutical market of our country. This has created tremendous competition for every domestic manufacturer, which in most cases is not able to resist the active expansion of inexpensive substances of low quality to the domestic market.

Main pharmaceutical market trends

According to some estimates, the volume of the pharmaceutical market, according to the results of recent years, in our country reaches 1 trillion rubles. At the same time, domestic medicines in the total volume of sold products of this type account for only about 25% in monetary terms and approximately 60% in kind.

Sharp questions

Today, one of the most pressing issues that worries those interested in the development of domestic pharmaceutical production is the origin of standardized semi-finished products, which are the basis for the production of finished drugs in our state. Unfortunately, the conclusions of experts do not inspire optimism for domestic producers. Pharmaceutical production of medicinal components in our country is practically not developed.

Import of pharmaceutical substances

As for imports, in recent years, a situation has developed when about 80% of the volume of imported pharmaceutical substances in monetary terms is occupied by Germany, France, Italy and China.

It is noteworthy that, when considering the natural expression of import volumes, completely different figures are obtained. So, its largest share today is China - it is more than 70% of the total volume. Considering the ratio of specific shares calculated according to physical and cost indicators, we can conclude that the substances produced in the named country are characterized by a significantly lower price compared to similar products from other countries.

What is being imported

Imports mainly include components of very long-known drugs, represented by acetylsalicylic acid, paracetamol, metamizole sodium, metformin, ascorbic acid and others that are in demand among the population mainly due to low cost, funds.

Expert assessment suggests that the share of domestic production is characterized by a negligible figure, 8-9% of the total pharmaceutical market.

Conclusions

Probably, the above facts make it possible to state the obvious need to restore the production volumes of the products in question. The technology of pharmaceutical production of substances should be restored and applied inin full. The development of this sphere is necessary first of all in order to ensure the national security of the state.

Such statements are not empty words at all. Many manufacturers are faced with the fact of providing the domestic economy with substances from foreign suppliers on a residual basis. And this cannot but cause concern.