Introduction. Product portfolio development is one of the key functions of the pharmaceutical business, both domestic and foreign. A key component of success in this process is the availability of an effective business model. The purpose of the study is to analyze the business models of Russian manufacturers of herbal medicines and identify key features and success factors. Materials and methods. The study analyzes the business models of four leading Russian manufacturers of phytoproducts (Evalar, Krasnogorsklexredstva, Vifitech, and Zdorovye), which occupy more than 20% of the market. The data from the analytical marketing reports of the DSM Group (2020-2024), the method of expert assessments, and assortment analysis were used. Results and discussion. The key characteristics of the business models of companies leading the domestic market of phytopreparations (availability of their own raw material base, licensed production, a wide range of products, an increase in the share of high-price segment products in the portfolio, investments in R&D) have been identified. Companies with a vertically integrated business model, which provides, among other things, full control over the cost of production, demonstrate higher financial and economic indicators and occupy leading positions in the market. Conclusions. Product portfolio management in the phytopreparations segment requires a balanced approach to working with the product range, its financial indicators and evidence base. A balanced business model that includes automation of business processes, supply chain and supply chain management, entry into the lists for recommendations by the medical community and investments in clinical product research will allow domestic manufacturers to ensure sustainable development and increase competitiveness.