The Specificity of Foreign Pharmaceutical Companies' Localization Strategy on the Russian Market

This work is devoted to the specificity of foreign pharmaceutical companies’ localization strategy on the Russian market compared with other developing countries. Foreign companies, which Russian market share is more than the 50% in terms of price, benefit from the ownership of production facilities and the use of contract manufacturing, which has been proved by the cluster analysis. This fact is partially caused by the government restrictions against foreign producers, which is typical for the developing countries. This kind of policy together with some incentives for the foreign companies enable Russia to have a stable increase in medical production on its territory. It is worth mentioning that all the production of foreign companies in Russia is considered to meet the demand of the local market, while in some other countries these companies export some part of their products. Contract manufacturing prevails the new plant construction and when the foreign company’s production capacity in Russia is not enough it is more likely to negotiate a treaty with another company than to build one more cite. The further changes in the government policy might encourage foreign producers to build their laboratories in Russia as it is functioning in India.