The paper uses econometric tools (two-part model, Tobit model, Heckman model) to evaluate factors associated with consumer choice on the Russian pharmaceutical market. Using data from national public opinion survey conducted in 2014 by Levada Center we show that gender, health, retirement and single mother’s status are strongly associated with high expenditures on medicine. Incomes are positively associated with probability of spending on medicine, but marginal effect of incomes is small.
Nowadays Russian drug market structure is inefficient in terms of high level of branded generic drugs. This requires improvement of policy measures in order to increase the affordability of innovative drugs, both domestic and imported. The paper describes special features of Russian pharmaceutical market and investigates how drug policy instruments affect the commercial market structure, focusing mainly on incentives to launch and sell innovative drugs.