On February 22, 1996, the ARCCI, the AECC and the AmHS/Premier/SunHealth co-organized the conference "Pharmaceutical and Medical Markets in the New Independent States of the Former Soviet Union." McDermott, Will and Emery, a member firm of ARCCI, was a key sponsor and provided invaluable support for this event. Other contributors included the U.S. Department of Commerce, IMNEX International, and MDS Associates.
Ms. Sharon Weinstein, Director of International Affairs with AmHS/Premier/SunHealth, introduced the speakers and members of the Russian and Uzbek delegations. Welcoming remarks were made by Mr. Stanley Bokota, Director of the U.S. Department of Commerce International Trade Administration in Chicago. Mr. Bokota noted that while Russia is still contending with the change to free markets, the GDP and the ruble are both stabilizing, 75 percent of industry is now privatized, and entrepreneurs have done very well in the new business environment. He felt Russia will not and cannot turn back to its former system, no matter who controls the Duma. Bokota also emphasized that a stable, prosperous Russia is important to the United States, both politically and economically. He mentioned the array of services the Department of Commerce offers to help new business initiatives, including eleven American Business Centers in the NIS.
Conference organizers were honored to welcome Mr. Sergei Y. Chestnoi, Head of the Economic Department of the Embassy of the Russian Federation in the United States, and Mr. Yuri Pavlov, Consul General of the Republic of Ukraine. On behalf of the Embassy, Mr. Chestnoi warmly greeted the audience and profiled the current political and economic climate in the Russian Federation.
Mr. Pavlov spoke of the primary need of Ukraine to develop a domestic pharmaceutical manufacturing industry. Sergei Y. Chestnoi, Head of the Economic Department of the Embassy of the Russian Federation in the United States and Sharon Weinstein, Director, Office of International Affairs, AmHS/Premier/SunHealth, are getting ready for the Q & A session. He mentioned that in the past year, his country spent over a billion dollars on imported pharmaceuticals, and is now actively recruiting American companies to participate in joint ventures and technology transfer.
International Trade Specialists from the U.S. Department of Commerce, Mr. Mark Cooper and Ms. Karen Rubeiz, reported on the assistance the U.S. government has been providing to revamp the pharmaceutical regulatory structure in the NIS and other government initiatives.
Mr. Thomas M. Jones, Partner with the law firm of McDermott, Will & Emery and ARCCI Director, provided information on the changes in the tax structure in the NIS and the special challenges certain regulations present to companies seeking to enter the pharmaceutical/medical markets. He noted that of all pharmaceutical and medical imports in 1995, American products accounted for only 0.6 percent of the total, leaving these markets largely dominated by European firms and an untapped frontier for American companies.
Informative presentations were made by Mridu Sekhar, President of MDS Associates; Brad Muller, Project Coordinator for the St. Petersburg Medical Academy for Postgraduate Studies/University of Iowa Family Medical Center; Timothy D. Jaroch, Partner with the law firm of McDermott, Will & Emery; and Sharon Weinstein with AmHS/Premier/SunHealth. They recounted their experiences in the NIS medical markets, and provided insights on the opportunities and pitfalls of these particular industries.
After the ensuing question and answer session, Mr. James Stauner, President of the Baxter Healthcare Corporation - V. Mueller Division, delivered an excellent address on Baxter's operation in the NIS. He accounted Baxter's success to careful long term strategic planning, cooperation with the federal and local governments, and the well educated, talented, and hard working Russian workforce. James Stauner, President of Baxter Corporation V. Mueller Division shares strategies for successful operations in Russia.
The conference was conducted in a working atmosphere and provided the attendees with numerous opportunities to express their specific interests and needs. Attendees enjoyed informal networking with their colleagues and the speakers, which will undoubtedly support their future endeavors in these markets.