Veterinary Products and Services (Russian Market)

Development of technologies for the production of medicinal products for veterinary use

Main article: Development of technologies for the production of medicinal products for veterinary use (state program)

History

2024

Prime Minister Mikhail Mishustin allocated 500 million rubles for veterinary laboratory systems in the regions

On September 13, 2024, Prime Minister RFMikhail Mishustin signed an order to redistribute funding for the development of a system of veterinary laboratories in the regions. In total, 500 million rubles are allocated for these purposes.

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As part of the program, additional funds in 2024 will be Bashkiria received by both, Udmurtia as well as, and Kaluzhskaya. Samara Sverdlovsk Yaroslavskaya region The money will go to repair and technical re-equipment of laboratories, which will allow them to receive accreditation in the national accreditation system in the future. The decision was made as part of work to achieve the goals of State the program for the development agriculture and regulation of markets agricultural for products, raw materials and food. The funds are distributed among the regions as follows (thousand rubles):

· Republic of Adygea - 600.6;

· Republic of Bashkortostan - 18,556,6;

· Republic of Buryatia - 19,077;

· Republic of Karelia - 741;

· Republic of Mari El - 2571.2;

· Republic of Sakha (Yakutia) - 817.3;

· Republic of Tatarstan - 14,836,2;

· Udmurt Republic - 92,570;

· Chuvash Republic - 911.3;

· Trans-Baikal Territory - 209.1;

· Perm Territory - 5841;

· Stavropol Territory - 4091.4;

· Khabarovsk Territory - 859.1;

· Amur Region - 4207.9;

· Arkhangelsk region - 9020.6;

· Volgograd region - 2080.6;

· Voronezh region - 24 100.3;

· Irkutsk region - 1425.2;

· Kaluga region - 7826.8;

· Kirov region - 17 957.8;

· Kostroma region - 7467;

· Kurgan region - 2317;

· Kursk region - 108 548;

· Moscow region - 23 470.5;

· Nizhny Novgorod region - 6246.8;

· Novgorod region - 5872.5;

· Orenburg region - 7080.3;

· Oryol region - 951.7;

· Penza region - 1536.4;

· Samara region - 4556.2;

· Saratov region - 5814;

· Sverdlovsk region - 7093.3;

· Tambov region - 17 352.3;

· Tver region - 8928.6;

· Tomsk region - 2789.4;

· Ulyanovsk region - 34 479.8;

· Yaroslavl region - 2399.8;

· City of St. Petersburg - 23 618.4;

· Khanty-Mansiysk Autonomous Okrug - Ugra 1177.^[1]

The Ministry of Agriculture allocated 13 billion rubles for the development and production of veterinary drugs

On July 12, 2024, it became known that the Ministry of Agriculture of Russia announced the allocation of 13 billion rubles for the development and production of veterinary drugs in the country. This initiative is being implemented within the framework of the subprogramme, designed for the period from 2025 to 2030, and is aimed at strengthening the domestic veterinary pharmaceutical industry.

According to the draft government decree published on the regulation.gov.ru portal, it is planned to allocate more than 1 billion rubles from the federal budget, and over 12 billion rubles will be attracted from extrabudgetary sources. These funds will be used to develop technologies for the production of veterinary drugs in Russia.

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The Ministry of Agriculture sets ambitious goals for the development of domestic production of veterinary drugs. It is planned to increase the share of its own production of chemical and pharmaceutical veterinary drugs to 70%, and domestic veterinary vaccines in the livestock segment - to 37%.

Particular attention will be paid to the development and production of veterinary drugs for the prevention and treatment of diseases in key animal husbandry sectors: cattle breeding, pig breeding, poultry and aquaculture. This will reduce the dependence of the Russian agro-industrial complex on imported medicines for animals.

On July 12, 2024, the State Duma adopted in the first reading a bill on state support for manufacturers of veterinary drugs. This bill provides for the inclusion of organizations and individual entrepreneurs engaged in the production of enzyme preparations and medicines for animals in the list of recipients of state support under the law "On the Development of Agriculture."

The State Duma Committee on Agrarian Issues emphasized the need to harmonize the proposed changes with the main directions and principles of state agrarian policy. If the bill is passed, it will enter into force on September 1, 2024.^[2]

2023

The Russian market for veterinary services for the year grew by 17% to 45.6 billion rubles

In 2023, the turnover of the veterinary services market in Russia reached 45.6 billion rubles, rising by 17.4% compared to 2022. The growth was facilitated by an increase in the number of pets and an increase in the coverage of their veterinary services. This is stated in the BusinesStat study, the results of which were published on June 21, 2024.

According to estimates, in 2019 the costs in this area amounted to about 25.8 billion rubles. In 2020, a decline of 5.1% followed - to 24.5 billion rubles. The reason was the COVID-19 pandemic, which provoked a sharp decrease in demand for veterinary services and a decrease in the solvency of the population. Then came a period of steady growth. So, in 2021, the market turnover increased by 27.1%, reaching 31.1 billion rubles, and in 2022 an increase was recorded at 24.9 with a final result of 38.9 billion rubles.

A review by BusinesStat said there were several reasons for the veterinary market's rapid revenue growth. One of them is an increase in prices for services due to an increase in staff salaries, rental rates for premises, prices for imported equipment and drugs. In addition, against the background of inflation, other operating costs of veterinary clinics grew. In this situation, in order to attract customers, veterinary clinics develop a set of services and improve the service: they expand the diagnostic base, switch to a round-the-clock mode of operation, offer home visits to specialists, and also provide preliminary online advice on animal treatment and care.

In general, according to BusinesStat, in 2019-2023, the turnover of the veterinary services industry in Russia rose by 76.7%. Among the significant market players are named "Vet Union," "Vet City Center," "Alpha BC," "Multidisciplinary Veterinary Center" Two Hearts "and" Vetgospital^[3].

The production of veterinary drugs in Russia over the year increased by 10%

In 2023, approximately 37.6 million packages of veterinary drugs were produced in Russia. For comparison, in 2022, the volume of output was estimated at 34.2 million units. As such, year-on-year growth was at 10%, according to the BusinesStat review published on June 24, 2024.

The study examines medicinal products for the treatment, prevention of diseases and increasing the productivity of companion pets and farm animals (with the exception of diagnostic reagents and test systems). These are, in particular, anthelmintics and anticoccidic drugs, antibiotics, vaccines and toxoids, vitamins, micro- and macronutrients, preparations against fleas and skin parasites, anti-inflammatory drugs. Among the leading enterprises of the industry are named "NVC Agrovetzashchita S-P," "Nita-Pharm," "Scientific and Production Company" Vik, "" NPF "Ecoprom" and "Shchelkovsky Biokombinat."

According to estimates, in 2019 the volume of production of veterinary products in Russia amounted to 26.9 million packages. In 2020, there was an increase of 3.7% - up to 27.9 million units. In 2021, production reached 29.6 million packages, rising by 6.1%, and at the end of 2022, an increase of 15.5% was recorded. In general, in the period from 2019 to 2023, the production of veterinary drugs in the Russian Federation increased by 39.6%.

It is noted that problems with the supply of imported products against the background of the formed geopolitical situation allowed Russian enterprises to increase the volume of shipments of veterinary products. Despite the sanctions restrictions, domestic companies sought to maximize the available capacity, launched new factories and workshops, and also found reserves to increase production on existing lines and sites. The development of the industry was facilitated by active - direct and indirect - support for the state.^[4]

The share of domestic veterinary drugs in Russia reached 50%

In 2023, the provision of the Russian agro-industrial complex with domestic veterinary drugs amounted to 50%. Such data were provided by the Minister of Agriculture of Russia Oksana Lut on May 30, 2024.

She stressed the importance of intensifying the production of vaccines and other veterinary drugs, as well as the need to ensure their high quality - no worse than that of foreign analogues.

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The only question is intensification, and, of course, that these vaccines in terms of quality and herd conservation are effective, no worse than foreign counterparts. Here, too, we discuss with enterprises, we have understanding, "she said.

According to the Ministry of Agriculture, in 2023 the share of domestic vaccines for animals was 30%. In 2024, there are already large Russian companies that are developing vaccines for farm animals and poultry. According to the plans of the ministry, by 2030 the provision of the agro-industrial complex of Russia with domestic veterinary drugs should grow to 70%.

Today, 70% of vaccines in livestock and poultry come from abroad. According to the plan of the Ministry of Agriculture in 2030, 53% of vaccines for livestock and poultry should still come from abroad.

Earlier, Zhavoronkov said that after the introduction of restrictions on the import of veterinary drugs in 2022, the market situation worsened significantly. According to him, the import of medicines for animals into Russia has practically stopped, which has led to a serious shortage and an increase in prices.^[5]

Digital labeling of veterinary drugs is launched in Russia

On December 1, 2023, an experiment on digital labeling of drugs for veterinary use will start in Russia. The press service of the Ministry of Industry and Trade announced this on November 15, 2023. Read more here.

2022

The veterinary services market in Russia showed an increase of 9.4%

In 2022, 37.4 million veterinary services were provided to residents of Russia, which is 1.1% more than a year earlier. And in comparison with 2018, the market volume grew by 9.4%, experts from the analytical agency BusinesStat calculated. The study was released in May 2023.

As stated in the report, the growth of the veterinary market in 2022 was facilitated by a general increase in the number of pets in Russia, the gradual development of a responsible and conscious attitude towards pets in society, an increase in awareness of Russians about the need to prevent veterinary diseases and timely vaccination. The researchers attributed the negative factors to:

• shortage of imported drugs;
• the high cost of veterinary care in the private sector of the market;
• stagnation of incomes of the population;
• low availability of low-cost services in public veterinary clinics.

The veterinary services market in Russia showed an increase of 9.4%

Geopolitical instability, disrupted supply chains, inflation, a decrease in real incomes, difficulties in the labor market influenced the entire zoo industry. Against the background of the imposed sanctions, a shortage of imported products arose: reagents for laboratory research, vaccines, anesthetics, drugs for anesthesia, imported drugs for chemotherapy and many consumables were practically lost. The timing and cost of deliveries increased. The rush demand for imported drugs, which arose in the spring of 2022, destabilized the market and affected the price policy of distributors. In 2022, the real cash incomes of the population decreased, which led to a change in purchasing behavior. Due to the lack of drugs and the general increase in the cost of veterinary services, part of the population was forced to abandon preventive doses and reduce the number of vaccinations, say BusinesStat.^[6]

Rosselkhoznadzor received the right to enter into the register of prohibited resources sites selling prohibited veterinary drugs

In August 2022, Prime Minister Mikhail Mishustin signed a decree giving the Federal Service for Veterinary and Phytosanitary Supervision (Rosselkhoznadzor) the right to enter sites in the register of prohibited resources.

According to the document, the Rosselkhoznadzor can make decisions on the inclusion in the "black list" of sites in relation to information disseminated on the Internet containing a proposal for retail trade in medicines for veterinary use, including by remote means, retail trade of which is limited or prohibited in accordance with the federal law "On the circulation of medicines," and (or) information containing a proposal on the retail trade of medicines for veterinary use, including by remote means, by persons who do not have a license to carry out pharmaceutical activities and permission to carry out such trade, if obtaining a license and permission is provided for by the legislation on the circulation of medicines.

Rosselkhoznadzor got the opportunity to enter sites in the register of prohibited resources

Thus, the register of prohibited will include pages of various online stores offering users medicines for veterinary use, the sale of which is limited or prohibited in Russia.

Decisions on the inclusion in the register of prohibited sites of resources with illegal information about medicines for human use are made by the Federal Service for Supervision of Healthcare (Roszdravnadzor).

Blocking sites with prohibited veterinary drugs is an important step in cleaning up the market, but it will not allow you to completely get rid of harmful drugs. This opinion was expressed in an interview with Parlamentskaya Gazeta by the head of the Federation Council Committee on Agrarian and Food Policy Alexei Mayorov. According to him, in relation to drugs for animals, it is necessary to implement a tracking system similar to the control of drugs for humans.^[7]"

2021: Illegal circulation of veterinary drugs increased by 22.8%

In 2021, illegal imports of veterinary drugs in Russia reached 53 million units, which corresponds to 22.8% of the total market for such products. Such data were provided by experts from the National Research University Higher School of Economics (HSE).

According to them, according to the data, Rosstat RNC Pharma and, FCS Russia the volume of sales of veterinary products in 2021 amounted to 231 million packages. The main sales channel (78-80%) remains direct sales of drugs to large agricultural enterprises, retail sales Internet sales (including) account for about 20% of the total market (48-53 million packages per year).

Illegal circulation of veterinary drugs in Russia for the year increased by 22.8%

In addition, the study authors assessed the potential costs and benefits of market participants from the introduction of digital labeling. An assessment was made of the additional income of bona fide participants from the "whitewashing" of the market (growth in sales and profits) and state revenues in connection with an increase in income tax revenues, social fees and other payments.

{{quote 'According to our estimates, the profit of bona fide market participants with a 50% reduction in illegal turnover may grow by 1.6-1.7 billion rubles, and the net gain of bona fide manufacturers from the introduction of mandatory labeling may amount to 800 million rubles a year, the experts added. }} In their opinion, these results indicate a systematic practice of falsifying veterinary drugs and misleading consumers when buying drugs for animals.

The Rosselkhoznadzor proposes to make the labeling of veterinary drugs mandatory. According to the authors of the initiative, this will help trace the movement of drugs from the manufacturer to the final consumer and will reduce the number of counterfeit products on the market. From July 1, 2020, mandatory labeling of drugs began in Russia. By 2024, it is planned to create a unified labeling system for all types of goods in the country.^[8]

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