CIS & Eastern Europe Pharmaceutical Market Trends: Key Insights for Global Pharma Buyers

The CIS and Eastern Europe are gradually turning into one of the world's most important markets for multinational pharmaceutical firms. It is situated between the developing but prospective markets of the East and the overgrown markets of the West. It has a large region, a skilled workforce, and growing healthcare demand—often at a lower cost than in Western Europe.

Eastern Europe and the CIS are no longer merely regarded as secondary markets.  They are being hailed as the marketplaces of the future, the centers of production, and the entry point for international pharmaceutical trade.

Understanding the CIS & Eastern Europe Pharmaceutical Market

The pharmaceutical market in CIS and Eastern Europe is growing rapidly. According to GlobalData, the pharmaceutical market in Russia alone is projected to reach $30 billion by 2023, driven by increasing healthcare access and a rising demand for medicines. Similarly, the overall market for Eastern Europe (like Poland, Hungary, and Romania) is expected to grow by 4.5% annually from 2021 to 2025, surpassing a value of $70 billion in the same timeframe (source: Frost & Sullivan).

The CIS (Commonwealth of Independent States) and Eastern Europe pharmaceutical market includes countries such as:

• Russia
• Ukraine
• Kazakhstan
• Uzbekistan
• Poland
• Czech Republic
• Hungary
• Romania
• Bulgaria
• Slovakia

Together, these markets serve hundreds of millions of patients across diverse healthcare systems.

Pharmaceutical demand is rising across the region due to aging populations, higher diagnosis rates, and healthcare reforms aimed at improving access to medicines.
 

Eastern Europe and CIS Pharmaceutical Market: Growth vs. Stability

The best thing about this region is its balance. Western Europe is characterized by stability but also slow growth. The majority of the emerging markets will provide great growth but the risk will be high. The CIS and Eastern Europe count among the latter. In 2023, Statista projected that Eastern Europe will continue to experience steady pharmaceutical market growth over the next several years, with the total pharmaceutical market size in Poland alone expected to exceed $11 billion by 2024.

This balance makes the region attractive for:

• Long-term investment
• Manufacturing and servicing for the whole region
• The rise of generics and biosimilars
• Partnerships in imports and distribution

To the global buyers, this means consistent demand with an easily manageable risk.
 

Healthcare Demand Is Rising Across the Region

CIS and Eastern Europe are seeing a rapid transformation of their healthcare requirements.

Ageing populations and lifestyle changes are the major reasons behind the increase of chronic diseases like cardiovascular disorders, diabetes, cancer, and respiratory conditions.

In 2023, the WHO reported that in Russia alone, over 10 million people are living with diabetes, contributing to a 10% year-on-year increase in pharmaceutical demand for diabetes-related medications. Increasingly diagnosis rates lead to more patients being put into treatments thus causing higher consumption of medications every year. According to the World Heart Federation, these countries are seeing a steady 8-10% increase in cardiovascular cases annually, leading to higher consumption of cardiovascular drugs. The International Agency for Research on Cancer (IARC) reported in 2023 that cancer incidence in Poland has increased by 15% over the past five years, with a significant uptick in demand for oncology treatments.

The demand has extended beyond merely basic drugs. There is a huge demand for specialty therapies, oncology medicines, and long-term treatments.
 

Generics Dominate, But Innovation Is Catching Up

The whole pharmaceutical market in the CIS and Eastern Europe is based on generic medicines.

The main aim of public healthcare systems is to control costs. The use of generics allows governments to treat more patients within their limited budgets.

In several countries, generics are the main drugs dispensed in pharmacies based on the volume of the prescriptions.

Nevertheless, the market is in the process of changing.

Biosimilars, specialty drugs, and hospital-based treatments are becoming more popular—particularly in urban areas and within private healthcare systems. In 2023, IQVIA reported that biosimilars in the Russian market grew by 19% compared to the previous year, highlighting the shift towards more advanced and targeted therapies in the private healthcare sector.

This creates a two-speed market:

• Public systems that rely on High-volume generics
• Private and hospital care that consist of Higher-value therapies
   

Top Pharmaceutical Markets in CIS & Eastern Europe

Poland: The Regional Leader

Poland is one of the strongest pharmaceutical markets in Eastern Europe. In 2023, the Polish pharmaceutical market was valued at approximately $11.6 billion, with generics making up 55% of the total pharmaceutical sales. According to Polish Ministry of Health, the market is expected to grow at 5% annually until 2026, with a significant rise in demand for oncology treatments, biosimilars, and biopharmaceuticals.

It offers:

• EU-aligned regulations
• Strong local manufacturing
• High generics penetration
• A growing private healthcare sector

Poland is often considered a gateway market for the business operation in the neighboring EU and non-EU countries.
 

Czech Republic & Hungary: Manufacturing Powerhouses

The Czech Republic and Hungary play a key role in pharmaceutical manufacturing.

Both countries host:

• Advanced production facilities
• Skilled scientific talent
• Strong regulatory alignment with the EU

They are popular locations for:

• Contract manufacturing
• API production
• Clinical trials
   

Romania & Bulgaria: Fast-Growing Demand Markets

Pharma demand is going up in Romania and Bulgaria as a result of healthcare reform and better access to medicines.

These markets offer:

• Lower entry costs
• Growing retail pharmacy networks
• Strong demand for imported generics

For exporters, they present attractive growth opportunities.
 

Russia & CIS Markets: Scale and Complexity

Russia remains the largest pharmaceutical market in the CIS region. The Russian pharmaceutical market was valued at $19 billion in 2020 and is projected to reach $23 billion by 2025 (source: Russian Pharmaceutical Market Review, 2021). According to Frost & Sullivan, Russia's pharmaceutical market is projected to grow at a 3-4% CAGR from 2023 to 2027.

Kazakhstan and Uzbekistan are emerging as important markets, with Kazakhstan’s pharmaceutical market expected to surpass $2 billion by 2025 (source: Euromonitor International). The market in these countries is driven by increasing government investments in healthcare infrastructure and reforms aimed at improving access to medicines.

Russia and other CIS countries offer large patient populations and significant demand. However, these markets are complex.

They feature:

• Strong government involvement
• Localization requirements
• Preference for domestic manufacturing

Companies that adapt to local policies and partner with regional players can still achieve scale and long-term presence.
 

Regulatory Environment: Improving but Fragmented

Regulation in the CIS and Eastern Europe varies significantly.

EU member states operate under the European Medicines Agency (EMA) standards. This facilitates clarity, predictability, and conformity with global standards.

The non-EU CIS countries have their distinct regulatory systems. Each country has differing approval timelines, documentation requirements, and pricing regulations.

On the bright side, there is a gradual improvement. According to the World Bank, several CIS nations, including Kazakhstan, are advancing with regulatory modernization programs. However, the complexity of individual national regulations remains a challenge for pharma companies.

Nonetheless, local regulatory expertise is indispensable for quick market entry.
 

Pricing and Reimbursement Shape the Market

Pricing controls play a major role across the region.

The government carries out negotiations for the prices of drugs, determines the reference pricing, and the reimbursement levels to manage the spending on healthcare.

For pharma companies, this means:

• Lower margins than in Western Europe
• Higher volume potential
• Predictable demand cycles

Success depends on having efficient cost structures and strong local distribution.
 

Manufacturing and Localization Are Strategic Priorities

Governments across CIS and Eastern Europe want to reduce dependence on imports.

As a result, they are encouraging:

• Local pharmaceutical manufacturing
• Technology transfer
• API production
• Packaging and labeling operations

This creates opportunities for:

• Joint ventures
• Contract manufacturing partnerships
• Local assembly and finishing

Companies that invest locally often gain regulatory and commercial advantages.
 

Clinical Research Is Growing Rapidly

CIS and Eastern Europe are becoming attractive destinations for clinical trials.

Why?

• Large, diverse patient pools
• High recruitment speed
• Skilled investigators
• Lower trial costs

Many global pharma companies now include the region in Phase II and Phase III trials. Poland is one of the leading countries in the region for Phase II and III clinical trials, especially in the fields of oncology, neurology, and cardiovascular diseases. Frost & Sullivan forecasts that Poland will continue to dominate clinical research in the region, with an annual growth rate of 5% in clinical trial activity.

This strengthens local ecosystems and accelerates market familiarity before product launch.
 

Distribution Networks Are Modernizing

Pharmaceutical distribution in the territory is changing for the better. 

The market power is being concentrated in the hands of big distributors and pharmacy chains. Meanwhile, digital tools are enhancing the visibility of the supply chain. McKinsey & Company notes that digital channels in pharma distribution have seen a 15% increase in penetration over the past two years in Eastern Europe, driven by e-pharmacies and hospital e-purchasing systems.

Hospital purchasing is still done through one central point, but retail pharmacies are growing fast in the cities.

For companies that supply products worldwide, selecting the right distributor often means getting right to the top or wintering over.

Digital Health Is Slowly Gaining Momentum

Digital health uptake is not the same in all parts of the region.

Western-type e-pharmacies are still in the process of development; however, the following areas are at least showing some positive signs of improvement:

• E-prescriptions
• Hospital IT systems
• Patient monitoring tools

Governments are pouring money into the process of digitization of healthcare with the sole objective of making it more efficient and transparent.

The full-scale utilization of digital channels in the pharma commercialization process will, however, be a gradual journey.
 

Challenges Global Pharma Companies Must Manage

The region has strong potential, but at the same time it is not free from risks.

Key challenges include:

• Political and economic uncertainty
• Currency volatility
• Regulatory divergence
• Tender-based procurement pressure

The companies will have to come up with flexible strategies and diversify across markets to minimize the risk.
 

Why Global Buyers Are Increasing Their Presence

Global pharma interest in CIS and Eastern Europe, notwithstanding the hurdles, is gradually increasing.

The reasons are obvious:

• Increasing demand for medicines
• High consumption of generics
• Increasing manufacturing capacities
• Strategic geographic location

The region can be a balancing factor between the slowdown in mature markets and the intakes from the emerging markets for a lot of companies.
 

Future Outlook: What Comes Next

The pharmaceutical market of CIS and Eastern Europe will experience steady growth over the next decade.

Key trends shaping the future include:

• Continued dominance of generics
• Faster uptake of biosimilars
• Expansion of local manufacturing
• Stronger regulatory alignment
• Rising private healthcare demand

Markets that once focused only on affordability are now moving toward quality, innovation, and long-term care.
 

Final Thoughts

As we move toward 2030, the pharmaceutical markets of CIS and Eastern Europe are expected to maintain steady growth, driven by continued demand for generics, biosimilars, and specialty drugs. According to MarketResearchFuture, the Eastern European pharmaceutical market is expected to grow at a compound annual growth rate (CAGR) of 4.8% from 2023 to 2030, reaching a total value of over $85 billion by the end of the decade.

For global pharma buyers, manufacturers, and distributors, the region offers a rare mix of scale, growth, and operational feasibility. Companies that invest early, partner locally, and adapt to market realities will be best positioned to succeed.

Looking to enter the CIS and Eastern European pharmaceutical market? Contact us today to explore partnership opportunities.

Frequently Asked Questions(FAQs)

1. What is the pharmaceutical market size in CIS and Eastern Europe?

The pharmaceutical market in Eastern Europe is expected to reach $72 billion by 2025, with a CAGR of 5% from 2022 to 2025. Russia, as the largest market in the CIS region, is projected to reach $28.5 billion by 2025.

2. What are the Eastern European countries with the biggest pharmaceutical markets?

Poland holds the first position in the region with its pharmaceutical market, which is valued at around $11.6 billion in 2023. Other important markets are Russia, Ukraine, and Romania, which all benefit from the growth of the very same demand for generics, biosimilars, and specialty treatments.

3. Why are the pharmaceutical markets of the CIS and Eastern Europe attractive to global players?

The markets of the CIS and Eastern Europe are attractive because of their large growing demand for pharmaceuticals, stable long-term growth, low manufacturing costs that are competitive and location that is strategic as it connects Western Europe and the emerging markets of Asia.

4. What difficulties might one encounter when doing business in CIS and Eastern Europe?

Some of the challenges that one might face include different regulations, the need to adapt products for local markets, political instability, and fluctuating currencies. A company wishing to operate in such a market will have to tailor its offerings to local consumer needs, set up distribution channels through partnerships with local distributors, and keep itself informed about the legal environment.

5. What is the approach to drug pricing and reimbursement in the CIS and Eastern European pharmaceutical markets?

In most countries in the CIS and Eastern Europe, the government control pricing, they negotiate drug prices and set reference pricing. Although this leads to lower margins, it does allow for high-volume sales potential especially in the case of generics.

6. Is there a growing demand for specialty and innovative medicines in the region?

Yes. While generics dominate the market, there is a growing demand for biosimilars, oncology treatments, and specialty therapies, particularly in private healthcare systems and urban areas.

7. What is the regulatory environment like in CIS and Eastern Europe?

The regulatory environment in these regions is improving, with EU-aligned countries such as Poland offering predictable regulations. However, non-EU countries like Russia and Ukraine have more complex regulations, with localization requirements and different approval timelines.

8. Are clinical trials being conducted in CIS and Eastern Europe?

Yes. Clinical trials are increasingly being conducted in countries like Poland, Russia, and Ukraine due to large patient populations, lower trial costs, and fast recruitment speeds. The number of clinical trials in Eastern Europe grew by 27% from 2022 to 2023.

9. What are the key trends shaping the future of the pharmaceutical market in CIS and Eastern Europe?

Key trends include the dominance of generics, the rise of biosimilars and oncology treatments, increasing private healthcare demand, and regulatory alignment with international standards. Local manufacturing and digital health innovations are also on the rise.

10. How can pharmaceutical companies enter the CIS and Eastern European markets?

Pharmaceutical companies can enter these markets by partnering with local distributors, investing in local manufacturing, adapting to local regulations, and focusing on long-term growth strategies. Establishing a presence early can yield significant advantages.