The Trade Council Russia Healthcare

Transcription

1 Healthcare Activity Plan 2015 Q3-4 This folder provides an overview of all the different activities and possibilities the Trade Council Russia offers in In the folder you can find invitations to fairs, market visits, sector clubs and much more. We are always ready to answer the questions you might have concerning the activities, so don t hesitate to contact us Keep yourself updated with the newest activities and market developments on the market - follow the Trade Council in Russia on LinkedIn: click here

2 THE AMBASSADORS INTRODUCTION 3 HEALTHCARE SECTOR IN RUSSIA 4 HOW CAN THE TRADE COUNCIL HELP YOU? 8 Eurasian Economic Union (EAEU) New opportunities? 8 Get to know the Market of Russia, Kazakhstan, Belarus and other CIS countries 9 Events 10 Setting the right framework for Danish businesses in Russia 11 EKF 12 HEALTH NETWORK RUSSIA ACTIVITY PLAN 2015 Q Market visit Belarus 18 Market visit - Russia 20 2

3 THE AMBASSADORS INTRODUCTION Russia is the potentially biggest near-market that Denmark has. Over the last years Denmark has been exporting for about 12 billion DKK per year. The final result for year 2014 was different and the export was just under 9 billion DKK. Considering the Russian ban on food import from Europe, which hit Danish exporters hard, this is an interesting figure. Why were we not hit harder? The answer is that Danish exports to and investments in Russia are far more diversified you find Danish companies engaged in all sectors. The current difficult political climate has not changed this fundamentally. And there is no need to shy away from the Russian market, if you are careful and have a well-thought through strategy. When discussing the how with Danish companies who have been on the Russian market for some years, they point to the fact that Russia has always been a challenging market. It has its peaks and its lows, but so far it has come back every time. Their lessons learned can be summarised in 3 P s. Presence If you want to have Russia as a market, you need to be here when it goes up and when it goes down. Some Danish companies expand when the market is down. The square meters in the shopping centres are cheaper and the local governments are more eager to welcome you in local projects. It pays off in the long run - they remember those who stay! Patience Things takes time in Russia. Few starts out with a big and great success on the Russian market. A key factor to achieving success is to know the right people. A key role for me and my colleagues at the Embassy is to open all the right doors for you to help you establish relationships with the right people and get a solid foothold faster. Companies, who have been here for more than 20 years, still use our services to meet the right level of decision makers and buyers. Persistence The companies who have something to offer that is relevant for the Russian market and who stay, will find that there is money in Russia. Currently the Russian government are implementing an anti-crisis plan that include major infrastructure projects and support for the Russian industry. Another major focus is on increasing the internal Russian food production. This is a big task where all steps from field to table need to be improved. This is a huge opportunity for Denmark and Danish companies. Denmark has been through this process many years ago and we have the know-how and machinery that will create real value for the Russian counterparts. Starting to work with Russia will always be a big task, and this is no less true today. The current political environment should, however, not prevent Danish companies from taking advantage of the opportunities that do exist. That would be an opportunity lost. This is where I hope you will let the Danish Trade Council Russia (The Commercial Department at the Embassy in Moscow and the General Consulate in St. Petersburg) help you, get the right understanding of the market, get the right contacts, all in the aim to get the contracts and the sales! We are also covering Belarus, Kazakhstan, Kirgizstan, Tadzhikistan, Turkmenistan and Uzbekistan and will be able to assist your access to these markets as well. I and my colleagues at the Embassy and the General Consulate stand ready to guide and advise you also on the political framework. I hope to see you in Russia. We are looking forward to assisting you in achieving success. H.E. Thomas Winkler Ambassador of the Kingdom of Denmark to the Russian Federation 3

4 HEALTHCARE SECTOR IN RUSSIA The Russian Healthcare market is a market in growth. The lack of efficient tools and equipment with a growing elder burden is a development that Denmark and the Danish system know very well. Here the Danish companies are in the forefront of developing innovative and efficient solutions. However the structure of the market is challenging and the financial situation is adding to the challenge. Even with these challenges there are Danish companies on the market working hard and earning money. The Russian healthcare system is divided into national, regional, and municipal levels. The national government controls the budget, policy, and registration of technologies, while regional and municipal governments have control over their facilities and budgets. The national government collects taxes and distributes funds to the regional and municipal levels through Mandatory Health Insurance funds. This covers about two-thirds of the cost of procedures. To make up the difference, Russian citizens also have access to voluntary health insurance and private medical care. This system continues to evolve. In 2010, the government implemented the Strategy 2020 initiative to attract investment, create jobs, produce safe and effective products, and reduce the country's dependence on foreign healthcare products to a maximum of 50% by 2020 (Source: In January 2013, the government approved a national healthcare development plan for the period. The programme consists of 11 initiatives that focus on several areas including preventive care, health & wellbeing of mothers & babies, and medical rehabilitation/physiotherapy. The government's national Health project aims to improve healthcare standards. Since the project's implementation, numerous medical facilities have been upgraded. Medical devices The Russian medical device market is expected to contract by a CAGR (compound annual growth rate) of 2.9 % over the period, due to the weakening of the ruble. Russia was one of the fastest growing markets in the region for many years, but current economic situation is expected to change in 2015, which will adversely affect medical device market growth, as less money is made available for healthcare. Additionally, imports may fall as the currency devaluation has made foreign products very expensive. In 2013, the Russian medical device market was estimated at USD 6,716.9mn, or USD 47 per capita. This market size is comparable to Canada; in per capita terms, the market is similar to Croatia. The CAGR was estimated at 0.3%, but the market is expected to contract by a CAGR of 2.9% over the period, to USD 5,785.2mn, or USD 41 per capita by Over 70% of the medical device market is supplied by imports. Russia imported medical devices valued at USD 4,848.9mn in 2013; this represented a fall of 21.8% compared with 2012 and a CAGR of 1.1%. Imports have grown every year since 2003, with the exception of 2009 and In the 12 months to September 2014, Russian medical device imports decreased by 26.1%, to USD 4,525.5mn. Rehabilitation equipment According to a market research of rehabilitation services conducted by Synopsis medical research centre in 2012, about 12% of the population of Russian Federation suffer from chronic diseases of the musculoskeletal system. The growing number of such patients increase the demand for rehabilitation services. Rehabilitation centres located in Leningrad and Moscow regions (including recently started projects) seem to be more interesting target group. Nowadays both individual and corporate investors are interested in this sector. During the last two years a number of new projects of rehabilitation centres were initiated both in Moscow and Saint Petersburg One can also notice that a range of services is growing and a comprehensive approach to rehabilitation is being implemented. 4

5 Most popular rehabilitation equipment: - training simulators (cardiovascular, bike and bodysimulators for the different groups of muscles and joints) - Equipment for water treatment (Charcot s douche, multifunctional medical baths etc.) - walking aids - equipment for the massage and manual therapy - Rehabilitation equipment may also be acquired by rehabilitation clinics located in resort areas (Krasnodar region, the Caucasus etc.) The introduction of new methods of rehabilitation seems to be not so complicated as introduction of new diagnostic and treatment technologies. Home care rehabilitation equipment is also in demand. Both exercise therapy and physiotherapy are very popular methods of medical rehabilitation since the Soviet times. Nearly all public and private clinics are equipped with basic physiotherapy equipment. Both public and private sectors are mainly equipped with Russian made physiotherapeutic technique. Nowadays Russian manufactures produce more than 100 types and positions of different physiotherapeutic devices. Their lifetime is years, but there are a lot of year old devices still in use. On the one hand, this is an evidence of high quality of domestic production; on the other hand, the time has come to replace those old devices with new and modern ones. International standards for rehabilitation services have changed, patients demands have diversified and increased, and there is a clear demand in Russia for new physiotherapy equipment. However, it is necessary to say that the situation in private healthcare sector is not so crucial and an average lifetime of physiotherapy equipment in use is only 7 years. Besides healthcare institutions, potential clients to buy physiotherapy equipment are nursery schools, private secondary schools and sanatoriums. Russian manufacturers of this equipment are far beyond their western competitors both in design and fficiency of their products, but it is hard to compete with them on price. Thus a foreign supplier of physiotherapy equipment, who is interested in Russian market, should carefully examine the market situation and clearly draw out its competitive advantages in comparison to local competitors. The leading importers of physiotherapy equipment come from the Czech Republic, United Kingdom, Japan and Germany. Orthopaedic devices & prosthesis are among most popular devices imported to Russia. (Source: FINPRO consulting) 5

6 Pharma The pharmaceutical industry in Russia has been witnessing strong growth over the last couple of years, with the alimentary/metabolism segment leading the market. The industry grew by 17.5% in 2009 and is expected to reach a value of $10.7 billion by the year The Russian pharmaceutical market accounts for just 3.6% of the European pharmaceutical industry in terms of value. Despite global economic downturn Russian pharmaceutical market remains strong and continues to attract foreign companies. With sales of medicinal products exponentially rising over the last 10 years, both large and midsize Pharma are actively expanding its presence in the Russian market. The forecast for the next 10 years suggest a robust growth of pharmaceutical sales. ( At present time Russian pharmaceutical and medical device market is hugely dependent on outside import. There is a difference of allocation of the state resources, when it comes to medical equipment, which is mostly state funded and pharmaceuticals, mostly a retail market. Medical equipment and pharmaceuticals (public sector accounts for around a quarter of Russia s pharmaceuticals market) are procured for use in the public sector via electronic tenders, organized in accordance with the recently revised general state procurement legislation. However, in early February 2015 in the framework of the anti-crisis plan and import replacement measures the Russian government restricted state purchases of certain imported medical equipment and goods. Also, the ministry of industry and trade just came up with a proposal to restrict admission to tenders of imported pharmaceuticals, if there are two or more proposals to deliver similar pharmaceuticals from domestic producers. The Russian pharmaceutical market ranks second in volume terms after the foodstuff market and is one of the most dynamic and promising specialized markets. The Russian pharmaceutical market ranks among the top ten pharmaceutical markets in the world. In 2011, Russia was 8th in the world. The value of the Russian pharmaceutical market was 28.1 billion USD in end-user prices, which is a 12% increase compared with (Source: DSM Group). The volume of the market for pharmaceuticals in pharmacy procurement prices decreased by 6,8% in November 2014 in comparison with October 2014 and totalled up to 44,7 bln RUR. The average price of a pharmaceutical package increased for 2,9% and ran at 130,4 RUR in November From the beginning of 2014 the inflation rate for pharmaceuticals at the pharmacy shops of the country totalled at +8,5% in RUR and -21,1% in US dollars. The market structure of pharmaceuticals did not change radically in November 2014 in comparison with the same period in The reduction of quantity of pharmaceuticals with the price range of RUR per package continued in 2014 (from 20,3% in November 2013 to 17,6% in November 2014), pharmaceuticals of the lowest price segment (i.e. cheaper than 50 RUR per package) saw reduction of the market share from 7,3% to 6,7%. And pharmaceuticals with price tag of 500 RUR per package shared 28,4% of the market in November 2014 which is 2,1% more than in November At the end of November 2014 г. 55% of pharmaceuticals sold were of domestic origin (in physical terms) however due to their low price in comparison with the imported pharmaceuticals in terms of value they show 24% of sales. The commercial segment of the market at the end of November 2014 was presented by prescription products at 51% and for OTC drugs at 49%. (Source: What can the Trade Council do for You? Trade Council Russia can assist you in finding reliable Russian business partners, locating potential partners, searching for enterprises which meet specific requirements and select the most compatible. Trade Council Russia can be of help by providing all necessary contacts, organize meetings and negotiations with representatives of Russian companies. We offer market visits to Russia and Kazakhstan which might be of interest to newcomers to our markets. Please refer to the following pages for more information. 6

7 Join the Healthcare Network Russia The Healthcare Network Russia is an initiative launched by the Trade Council, promotes interests of Danish companies working within healthcare and social protection sectors. Please find more details in the following pages. For more information please contact our sector expert in Healthcare and Life Sciences. Svetlana has worked at the Danish embassy since 1997 advising Danish companies both large and SMEs on market entry, market trends, partner search, PR activities. Svetlana Chernova With her knowledge and experience of Russian corporate culture and functioning of the government agencies, Svetlana can assist Danish companies in different issues in connection with companies activities in Russia, including development of good relations with Russian partners and clients. Commercial Attaché Head of the Healthcare Sector Advisory Team 7

8 HOW CAN THE TRADE COUNCIL HELP YOU? Area of specialisation: Russia, Belarus, Kazakhstan, Kirgizstan, Tadzhikistan, Turkmenistan and Uzbekistan. We understand that time is money. We are here to help you save time on the Russian market and to get your products sold faster. Eurasian Economic Union (EAEU) New opportunities? The activities of the Trade Council Russia not only cover Russia but also most of the CIS countries: Tadzhikistan, Uzbekistan, Kyrgyzstan, Kazakhstan, Turkmenistan, and Belarus. The potential for cooperation between Danish companies and these countries within many sectors, including technology and energy sector, is getting more and more attractive due to the creation of the Eurasian Economic Union (EAEU), which was launched on 1 st January The Customs Union and the Common Economic Space between Russia, Belarus, Kazakhstan, and Armenia represent two elements of the most ambitious regional integration projects launched in the post-soviet space since Kyrgyzstan has recently become a member, while Tadzhikistan has shown interest in joining the EAEU as well. The Eurasian Economic Union aims to create a single economic space of more than 170 million people and a gross domestic product of around USD 3 trillion. One of the main objectives for the EAEU is to create a common energy market, and Trade Council Russia will closely monitor the development and possible opportunities for Danish companies in this connection. 8

9 Get to know the Market of Russia, Kazakhstan, Belarus and other CIS countries 1. Free of Charge Service A Free of Charge Service is a great way to quickly get a general overview about the available possibilities for your company within the Russian market. It could include a personal consultation about export, general overview for a company s strategy in the market or any other support within one consultancy hour. 2. Market survey The market survey helps the company define a strategy or decide whether to enter the Russian market. In correlation with The Trade Council the project will be defined very clearly in order to fully understand what your company expects from the survey and the kind of decisions the survey should lead to. A market survey could include information about: The accessibility to the market The size of the market and different segments The product s or service s fit to the market Identification of distribution channels, the competitive environment, prize levels, and legislation. SWOT analysis of the market entry 3. Market visit The Market Visit Programme is a service provided by The Trade Council to Danish small and medium sized enterprises (SMEs). The Market Visit Programme targets a group of companies with mutual interest that are looking for new market opportunities. This program is perfect for companies who wish to get a personal insight in the current trends and opportunities on the Russian market. The Market Visit could include: A meeting program for visiting potential partners and private and public institutions Participation in conferences, exhibitions etc. Field visits to relevant projects, retail outlets or other branch related localities 4. Marketing campaign The Trade Council can help you become visible on the Russian market. A marketing campaign is ideal for newcomers to the market and those who need help in order to achieve their marketing goals. We will use our experience and knowledge about the Russian market to help your company becoming more visible. A marketing campaign could include the following activities: Spreading the information about your company in written/online sources of information Series of publications in the right sources of information (magazines, newspapers, blogs) Press-event and launch at the Embassy LinkedIn, FB publication on Trade Council s internet resources 5. Partner Search A Russian partner helps the Danish company to market its products and services on the selected market. The Trade Council has extensive knowledge about many sectors, the business environment, and business culture and will do everything to help you to find a suitable partner. Together we will identify your specific needs and approach to the market and use our network, technical skills, and solid experience in partner search to set up meetings with 9

10 relevant candidates. The Trade Council can support you with translation, logistics and advice on your meetings with the potential partners. 6. Participation in exhibitions The Trade Council arranges a turnkey national exhibition stand, which will guarantee your company presence on the Russian market and bring you close to the Russian customers. 7. Vitus The Vitus programme helps Danish SMEs to enter new markets through a fast and effective kick-start. The aim is for ten chosen Danish SME s to quickly realize their export potential. This is done through an intense collaborative partnership between the companies and a commercial adviser on the Russian market. The goal for the program is that each participant achieves an export success within the 12 months that the program last. 8. Export start The Export Start Programme has existed since 2001 and is a government service provided by the Trade Council to Danish SMEs. This programme is applicable to any kind of Trade Council service within the amount of consultancy hours and could be used for a partner search, market entry assistance etc. The programme targets companies with a proven export related business plan which are looking for ways to expand their businesses on the Russian market. Events 1. Reception/Dinner at the Ambassador residence This is a unique chance for your company to host an event in the attractive surroundings of the Ambassador residence which is an old and charming Russian mansion in the absolute centre of Moscow. The setting is perfect for meeting potential partners or Russian officials and the Ambassador s presence will contribute to attract the right Russian attendants. We are always flexible and will ensure that the event meets your specific needs. 2. VIP events at the embassy, residence or Danish cultural institute The embassy may be a great alternative venue for hosting all kinds of other events. We can help you arrange catwalks, publicity events, media events etc. 3. Round tables We can arrange round table discussions with high-ranking Russian officials to discuss legal issues or other matters which requires the attention of the Russian authorities. The involvement of the embassy can ascertain the seriousness of the matter at hand. 10

11 Setting the right framework for Danish businesses in Russia 1. Negotiations support The embassy may assist your company with translation, counselling and guidance. We can assist you as a company to know what to expect from a meeting with a potential client/distributor and help you to understand what exactly is being said to try and avoid potential misunderstandings. 2. Conflict resolution support The Trade Council may use our experience in conflict resolution to assist you in resolving a given conflict. We may facilitate a restart of a dialog with the right people and within the right structural framework. 3. Company registration support The Trade Council can help you with the general framework of the registration process. We can assist with contact to legal support and offer incubator services. 4. Product certification support The Trade Council may assist you with an overview of the procedure and facilitate a liaison with a certification agency. We have knowledge about which product has mandatory registration and which has voluntary registration. Peter Mygind Rasmussen Minister Counsellor, head of the commercial department pemyra@um.dk 11

12 EKF The best security a company can have EKF is Denmark s Export Credit Agency. We help Danish companies make it possible and attractive for customers abroad to purchase Danish products. We do so by helping raise financing and by insuring companies and banks against the potential financial and political risks of trading with other countries. We assist both large and small companies, and we are pleased to provide solutions tailored to your company s specific needs. EKF was established in 1922 as only the third export credit agency in the world. Over the years, we have acquired unique expertise in the challenges faced by Danish companies in trading and investing around the globe. EKF is owned and guaranteed by the Danish state but operated as a modern financial enterprise. With a guarantee from EKF, you have the backing of the Danish state, and that makes a difference in the world beyond Denmark s borders. Use EKF as a sales argument We help you and your international customers to secure the financing that can make your export transactions a reality. For example, by securing your customer a loan that is to be used solely for buying your goods. By letting EKF and a bank help your customer with the financing, you can offer your customer an extended credit without running any unnecessary risk. This can give you an advantage in the competition with other suppliers. And even though your customer buys on credit, you get your payment immediately. Today, it takes more than just a good product to succeed in the export markets. With backing from EKF, you can offer your foreign customer a financing solution together with your product. The customers have an additional incentive to select you as a supplier, if you bring along a financing solution as well. Perhaps you re dreaming of > securing the order even though the customer s bank is refusing to finance the deal > helping your customer with credit without taking any unnecessary risk yourself > giving your customer an extra reason to choose you rather than your competitors > your distributor having the money to buy even more of your goods > covering your losses if your customer suddenly goes bankrupt or cancels an order > being able to concentrate on new business instead of the risk of losses on old business? EKF can help you with this. See our brochure here or find more information about EKF at EKF in Moscow Royal Danish Embassy, Moscow 9 Prechistensky Pereulok Mosow Russia Tel moscow@ekf.dk 12

13 CLUB INVITATION HEALTH NETWORK RUSSIA

14 Health Network Russia An initiative from the Ministry of Foreign Affairs, The Trade Council in Russia, developed in dialogue with Danish companies. In co-operation with the Danish Ministry of Health, Danish Regions and Region Central Denmark. Health Network Mission We want to position the Danish healthcare system, products, and technologies in the mind of Federal, regional, and municipal decision makers within the Russian healthcare sector with the aim to insure a good long tern framework for introducing and selling Danish products and know-how in Russia. Why Health Network Russia? The case for combining Global Public Affairs and export promotion Russia actively invests money into HC sector in different regions of Russia There is no ban on import of drugs Active development of Public-Private partnership The budget of HC programme 2020 was reduced only by 8% The Danish HC system is respected as an attractive model A challenging market protectionism, bureaucracy, ect. 14

15 Planed joint activities in 2015 In view of coming changes in healthcare legislation: Round table for regulatory issues with participation of experts from the Russian Ministry of Health trip (spring). You get: access to decision makers, influence on framework conditions. Two study trips to Denmark for the Russian Regional Administration, healthcare and social policy authorities. Regions TBD (suggested: Moscow city, Moscow region). Trips to the Russian regions: o Tararstan o Khanty-Mansijsk, Tjumen You get: direct access to the regional administration, possibility to market your company and product, to investigate possibilities and condition for cooperation in the selected regions. Event in connection with a healthcare exhibition (Zdravoolkhranenie 2015). December Quarterly newsletter. Membership Health Network Russia is targeting eligible Danish and Russian companies with a recognized international brand in the health sector and either a proven track record in Russia or a clear strategy on market entry in Russia as well as Danish and Russian authorities. The Trade Council Russia offers an annual membership in Health Network Russia at the cost of DKK Membership includes: Bilateral Events (delegations visiting Denmark) Case-by-case, cost-sharing for participating members 15

16 Round table with the Ministry of Health Members: DKK 5.000, non-members DKK Road shows Minimum 30% discount for members Individual projects Case-by-case based on TC s standard fee, DKK 945 per hour A tailor made project to the specific needs of the individual company: Opening doors, receptions, overcoming bureaucracy, etc. If you are interested in becoming a member in Health Network Russia or should you have any questions, please contact me. Best Regards, Svetlana Chernova Head of the Healthcare Sector Advisory Team Commercial Attaché sveche@um.dk +7 (495) Embassy of Denmark, Moscow 9, Prechistensky per. / Moscow +7 (495) / 16

17 ACTIVITY PLAN 2015 Q3-4 Date: Event: Sector: September: Healthcare Market Visit Belarus Healthcare October: Second half of October Moscow city Government visit to DK Healthcare End of October Healthcare Network Russia joint lunch Healthcare December: 9-12 Healthcare fair market visit Healthcare 17

18 INVITATION Market visit Belarus Sector: Health & Medtech Minsk September

19 Are you looking for growth opportunities? Have you been considering Belarus as a potential market? Join the Danish business delegation to Minsk on of September and get to know medical market of Republic of Belarus Participation will help your company to get knowledge of the market and identify specific opportunities for growth. At the same time joint export promotion is a good way to meet potential partners, customers and get a projects through the B2B meetings. In order to get a better understanding of the market, its opportunities and challenges, you will be able to participate in presentations. Brief Profile, June 2015 Territory: General Information: sq. km Population: 9,48 million (Apr 1, 2015), 25,7% live in rural areas Largest city: Minsk (population 1,9 mln) Big cities: Average salary: Official unemployment: Gomel, Mogilev, Vitebsk, Grodno, Brest BYR 6 mln. per month (418,9 USD) in Jan ,2% in 2014 Tentative program Briefing on political, economic and legal matters. Meetings with potential partners and customers. Roundtable discussion with representatives of the relevant authorities in Belarus. This is a unique chance to discuss issues and specific opportunities for your company.. Visit to medical institutions Reception with representatives of sector key decision makers/partners hosted by the Danish Ambassador. Networking with representatives of Healthcare Network Russia. Please confirm your interest in participation before August 4, For more information please contact: Svetlana Chernova, Head of the Healthcare Sector Advisory Team sveche@um.dk Tlf.: Particiapation fee Participation in the program is free for the members of the Healthcare Network Russia and DKK 6000 for Non-members of Healthcare Network. 19

20 INVITATION Market visit - Russia Sector: Health & Medtech Moskva 7-11 December