The crisis is not a barrier to investment
Published on 14 October 2020 by Anna Andriyanova
The coronavirus pandemic has become a real challenge for the global economy. Companies had to revise their investment plans: significantly reduce the volume of investment or even "freeze" large investment projects. According to the Central Bank, in the first half of 2020, the inflow of foreign direct investment in Russia amounted to $ 4.2 billion. This is almost 4 times less than in the same period of 2019.
This year, after a deal with Takeda, STADA became the largest foreign investor in the Russian pharmaceutical market. The company's total direct investment in the Russian economy during its 15 years on the market amounted to approximately 1 billion euros. In addition, STADA continues to invest into expanding its already strong manufacturing footprint in Russia. With our highly competitive manufacturing sites in Nizhny Novgorod and Obninsk, we have one of the highest levels of localization in Russia at around 70%, and we plan to transfer even more products from abroad to our two Russian manufacturing sites, manufacturing locally not only for Russia and the CIS region, but also for STADA globally.
The Russian market is the second most important market for STADA globally, our mission is to “Take care of people's health as a trusted partner”. We strive to improve the healthcare system by providing Russian patients with access to high-quality medicines in a comprehensive range of therapeutic areas. Already today, we are among the leaders in the Russian pharmaceutical market, with a market share of 6.3% in CHC and 4.2% in the Rx and CHC Retail market, we are the no. 2 company in CHC and Retail in Russia.*
We are convinced that we have strong further growth potential. While many companies take an – in our opinion – short-sighted view and cut down their investment to Russia in these difficult times, we believe that standing firm and even doubling down on investment is in the interest not only of patients in Russia and the Russian economy, but that also we as a company will see a further strengthening of our market share in Russia and our continued financial success.
*According to IQVIA+DSM, July 2020 YTD.