demand question

Hi all,

I am not an upramper or downramper. Just wanted to get more information on this issue which have been brought up in one of the current threads. But i dont think it has been properly answered.

The russian population is large, but it is also very poor. The quoated 3500 to 6000 US for a three month course outside russia. Granted , the russian government might provide a subsidy. but even they are limited financially.

I extracted this from an essay on line. May not be entirely accurate but certainly has reasonable claims.

http://commercecan.ic.gc.ca/scdt/bizmap/interface2.nsf/vDownload/IMI_2853/$file/X_726701.DOC

"The Russian pharmaceuticals market is dominated by generics. Out of 13,000 pharmaceuticals, which are currently registered in Russia, 78 percent are generics. According to official data, 30 percent of total spending for drugs comes from government sources while 70 percent is covered out-of-pocket. The problem is exacerbated since current levels for drug purchases covered under voluntary medical insurance are extremely low. The majority if population can still only afford inexpensive low-efficiency generic drugs. As a result, the Russian population’s consumption of drugs is 9-12 times lower than in Western countries. Average personal spending on drug consumption remains at a remarkably low $38 per person a year with the average price of drugs in Russia being 7-10 times less than comparable medications in the West. According to Drug-Store Monitoring Group, the average price of over-the-counter drugs in Russia in 2004 was $1.04. "


So my question is, demand is strong, there is a need for Ropren. But can the people afford it?? And if SLA were to sell SLA at significantly lower prices then other markets, would revenues still be as good as forecasted?