In 2013, which experts call the reference, the volume of the pharmaceutical market of Ukraine was about 3.3 billion US dollars. The Pharmaceutical market at that time was one of the fastest growing and took the second place among the CIS countries. According to the consulting company BakerTilly, on average, the market growth rate was 15-20%.
Despite the fact that the past, 2016, gradually returns positions, it is not possible to repeat record in dollar equivalent yet. Nevertheless, the market continue to grow confidently in UAH terms. There is a lion’s share of medicines in the pharmacy basket of retail sales. According to the results of 2016 (data of the apteka.ua portal), the volume of sales of medicines was UAH 50.5 billion per 1 billion of packs. There is a 1.98 billion in dollar equivalent. It is 21.9% more than in previous year in monetary equivalent and 5.7% in real terms. Experts point out that in 2016 the influence of the inflationary component has decreased significantly.
In January- April 2017, according to the report of “Business Credit” company, pharmacy sales in Ukraine have already increased by 16% in monetary terms (to UAH 21,335 billion) compared to the same period in 2016. The report notes that in physical terms, the volume of pharmacy sales for the same period increased by 9% (to 497, 665 million packs). The average weighted price of goods of the pharmacy basket in April this year was 43 UAH, for medicines there was 56.3 UAH per package.
According to the statistical indicators of the pharmaceutical market in the national currency of Ukraine, we observe a gradual stable growth. But there is only from one side. The market volume in dollar shows that the situation looks somewhat different.
In recent years, taking into account the crisis phenomes and rising cost of life in general, there is a reduction in the purchasing power of consumers. And although the State Committee of Commerce tells us that nominal and real incomes of the population are growing, we understand that in conjunction with other factors that affect purchasing power of consumers, they can not afford more than, for example in 2013. Several years in a row, the consumer prefers cheap drugs or even tries to do without them. Only at the end of the last year and at the beginning of this year there has resumed tendency when consumer began to return to medicines of the middle and highest price categories.
Manufacturers of pharmaceutical products also do not receive excess profits lately, as it was before. In spite of the advantage of Ukrainian manufacturers to foreigners in the percentage of units of products that Ukrainians buy, most of the raw material base is imported. And it has a significant influence on price. In order to increase the sales of its products in such market, the manufacturer is forced to spend large funds on the advertising of medicines. Significant advertising costs, as market profile shows, is the most effective engine sales for today. Those who have enough money for expensive advertising and effective work with pharmacy network, “own” the market.
As for pharmacies, they are also waiting for hard times. Taking into account the low purchasing power of citizens, the state began actively regulate commercial markups. According to the latest Government initiative, a new regulation of commercial markups is set at 5% and 15%. In addition, the reference pricing is introduced. The Ministry of Health establishes reference prices for medicines, within the limits of which the selling-off price for certain medicines is determined.
Pharmacy networks respond that instead, citizens’ expenses on medicines in Ukraine are the smallest among neighbor countries, and the average weighted retail markup decreases under the pressure of market mechanisms. They indicate that the final cost of drugs depends not on pharmacy markup, but on the exchange rate. The state respond that it understands the rigidity of its steps, but emphasizes that all the steps are aimed primarily at patients, because today the market of medicines is 86% financed from the patient’s pocket.
In addition, the Ministry of Health actively promotes reimbursement of the cost of medicines for a limited list determined by international non-proprietary names. It is planed to allocate budget funds to this item. But in the market of medicines, the amount of funds allocated for reimbursement is less than 1% of consumption. In addition, manufacturers note that the principles and rules for such reimbursement have not approved yet.
Despite the tendency of recent years, when domestic pharmaceutical manufacturers win positions from foreign ones, the situation may change again with the beginning of 2017. The new procedure for registration of foreign medicines came into force: producers of drugs already certified in other countries will be able to obtain permission for their importation and sale under a rather shortened procedure. In fact, it will be in verifying the registration data in the country of its receipt. Earlier manufacturers spent up to two years on it. It is expected that this will reduce prices for imported medicines and increase competition in this area with domestic producers. In addition, there are medicines that are simply not produced in Ukraine. In response, Ukrainian pharmaceutical companies initiated the consideration by the Antimonopoly Committee of Ukraine of the following question: how will updating of these registration procedures affect the competition in the Ukrainian pharmaceutical market.
According to Proxima Research data, the last year the percentage ratio in monetary equivalent of domestic and foreign producers was from 37% to 63% in favor of foreign, with a tendency of stable growth in the percentage of domestic producers. On the other hand, the shares in sales by packaging were distributed differently: 27% for imported, 73% for domestic. Here is an undoubted significant advantage on the side of Ukrainian medicines.
As noted before, the tendency to a decrease in the proportion of drugs in the consumer’s shopping basket is gradually changing. The economy is growing, purchasing power is increasing and the consumer is confidently returning the opportunity to increase expenditures on medicines. The average price of a pharmacy basket, which is already the smallest among neighbor countries, is gradually begins to increase. In addition, the domestic consumer during the crisis has already got used to the fact that Ukrainian medicines are also qualitative and competitive. The tendency to shift the center of consumer confidence to the drugs of large domestic producers is beginning.
Pharmaceutical experts are optimistic about the future, predicting its growth in monetary terms by 14-18% in 2017. In packages, the growth is forecasted at 2.9%. Exactly the increase in consumption in physical terms and the continuation of the redistribution of consumption patterns towards more expensive medicines will be the tendency of the following periods.
The Ukrainian Sokil-300 drone is an analogue of the Turkish Bayraktar and it may join the army next year. The head of Ukroboronprom Igor Fomenko announced it in an interview with RBC-Ukraine. “This is an analogue of the same Turkish Bayraktar. With funding it may already be adopted in a year,” he said. Fomenko says […]
Last week, the value of cryptocurrency fell sharply, but now it is approaching a historic high again. According to Coin Desk, after a sharp drop last week, the value of bitcoin broke the record and reached $ 19,686. Thus, the cryptocurrency exceeded the value recorded on December 16, 2017 by $ 20,665. But the absolute […]
The Kyiv shipyard Kuznya na Rybalskomu (Ukrainian: “Кузня на Рибальському”) has returned to the state budget more than 300 million UAH, which the Ministry of Finance had previously paid on the company’s debts. It is noted that in 2017 the government provided state guarantees for a plant loan from Ukreximbank. The credit line allowed to […]
The State Property Fund sold the Khorostkiv distillery at auction for UAH 55 million. This was reported on the auction page. This is the tenth enterprise in the industry to be privatized. Its initial cost was 31.4 million UAH. It is noted that four buyers participated in the auction for the sale of the Khorostkiv […]
Following the third phase of trials of its COVID-19 coronavirus vaccine, Moderna said the drug was generally well tolerated and no serious health problems were identified. According to the company, the effectiveness of its vaccine reaches 94.1%, and 100% for preventing severe coronavirus cases. Previously, the manufacturer estimated the effectiveness of its drug at 94.5%. […]
Latvian airline AirBaltic will resume flights to Ukraine on December 1 and will start a new flight Vilnius-Kiev to Boryspil airport. The schedule includes departures twice a week on Tuesdays and Saturdays on Airbus A220-300. Flights from Vilnius will depart at 09:00, from Kiev – at 11:15. “Vilnius Airport can be used for transit to […]
German Finance Minister Olaf Scholz said that eurozone finance ministers had agreed on a package of measures to reform the European Stabilization Fund (ESM). “The ESM reform strengthens the euro and the entire European banking sector,” said Scholz, whose country currently holds the EU presidency. According to the agreements, a new “safety cushion” for European […]
The British government hopes that in the coming weeks the relevant authorities of the country will register two vaccines against coronavirus. Boris Johnson, the Prime Minister announced it in an interview with Sky News on Monday, November 30. “So far, no vaccine has been approved for use by the Medicines and Medical Devices Agency. However, […]
More than the half of the American companies plan to reduce their office space because of the remote work will become a common option even after the end of the COVID-19 pandemic. This was reported by the Bloomberg, citing to the study by Cisco Systems. Agency interviewed 1,569 business leaders, employees of companies responsible for […]Next
The Ukrainian authorities are waiting for the new credit transfer revenues from the International Monetary Fund, according to Ukrainian news agencies Ukrainian News. The government is almost assured of getting a regular cash flow, referring to all the fulfillment of the conditions: the transition of Privatbank in public ownership and approval of the state budget […]Next
The price of shares of Coca-Cola today is 13.6% lower than at the beginning of 2020, and the profit with revenues of the second quarter fell by a third due to lower sales in restaurants and entertainments in the conditions of a pandemic. At the same time, shares of Coca-Cola are considered to be a […]Next
French entrepreneur plans to open the first Ukrainian truffle farm in Kharkiv region. Edouard Henon,the owner of the oldest in Bordeaux truffle plantation, plans to organise a truffle farm in the territory of the regional Kharkiv park landscape .He is sure that all conditions, necessary for the cultivation of a delicacy, are in the Kharkiv […]Next
In London is being heard the case about the manipulation of European interbank rates Euribor. The defendants are 11 former employees of large financial companies such as Deutsche Bank, Barclays and Societe Generale. This trial is characterized like atypical, because for the first time in the case of manipulation of the bidding Euribor defendants are […]Next
Chinese yuan in the next ten years could become the third global reserve currency after the dollar and euro. Such conclusion was reached by analysts of Morgan Stanley, writes CNBC. The growth of investment in the Chinese economy is called to be the reason for the increase in demand for the yuan. Currently, it accounts […]Next
Corporation of International Business Machines Corp on Monday announced an edition of a new central processing unit (CPU) for data centers POWER10. According to the company’s press release, the processor is made in the form factor of 7 nm with increased energy efficiency and three times better workload capacity than the previous generation of IBM […]Next
The group of the companies Energy Resources of Ukraine together with its Polish partner the state oil and gas company PGNiG won the tender for gas supply for the GTS Operator of Ukraine. This is stated in the message of the company “ERU Trading”. “ERU Trading was able to offer the most competitive prices thanks […]Next
Ukrainian startup Petcube, which successfully sells gadgets for pets, has attracted an investment in amount of $ 2.6 million from such investors as Almaz Capital and AVentures Capital, which previously invested in the start-up $ 1.1 million. Also, in the round participated legendary business incubator Y Combinator; Ukrainians got into the program of the Y […]Next
The Agricultural company “Volyn-Grain-Produkt” built a seed plant for the production of the soybean seeds, peas, wheat and barley. The official opening of the company is planned this year. This was said to the Latifundist.com by the founder of the company, Evgenyi Dudka. According to him, the company has tentatively made for themselves the soybean […]Next
Leaders of Ukrainian chemical holding Ostchem Holding AG appealed on December, 8 to the South City Court of Odessa region demanding to recover from the Odessa Portside Plant a debt owed to the company by force. On it informs Interfax Ukraine with reference to official sources. To confirm the legitimacy of this request, representatives of […]Next
Recently, it was reported that the largest Romanian company Antibiotice is going to expand the scope of activities, and to develop a pharmaceutical market in Ukraine. According to the informed sources, the first office of the Romanian pharmaceutical company Antibiotice will be opened in the Vinnitsa region. This was agreed between the Antibiotice CEO and […]Next
Etalon Corporation will restore the job of Chernihiv mechanical engineering complex in 2017. This writes the Interfax Ukraine referring to the statement by President of the Company Volodymyr Butko. According to the original source, the resumption of production is scheduled for January next year. Also it is planned to manufacture machinery for about 25 units […]Next
Russian operator MegaFon made a deal with Mail.ru shareholders to acquire a controlling stake shares of the corporation. According to official information, the purchase of securities was effected by signing the agreements with companies such as New Media and Technology Investment LP, New Media Technologies Capital Partners Limited and Ardoe Finance Limited, who are the […]Next
During the first weekend of weekend quarantine, catering establishments lost 27% of turnover. This is as of Monday, November 16, according to the platform Opendatabot, citing data from Poster, a restaurant automation company. It is noted that during the week the turnover of cafes and restaurants fell by 10% compared to the previous week. In […]Next
Group DF officially registered in 27 countries of the EU trademark “Ukraine Tomorrow”. Group DF, that is controlled by businessman Dmitry Firtash, announced the end of the official registration in the Office for Harmonization in the Internal Market (OHIM) of trademarks for goods and services “Ukraine Tomorrow” (TM), “Ukraine Morgen” and “Ukraine Tomorrow”, around which […]Next