The pharmaceutical market is one of the most dynamic and complex markets in Ukraine. Self-treatment is still a habit of Ukrainians. That is, treatment is not based on prescriptions prescribed by a doctor, but on the advice of pharmacists, as well as friends who had "similar" symptoms. Approximately 70% of Ukrainians go to the doctor less often than once a quarter, or do not go to the doctor at all. And at the same time 75% buy medicines once a quarter or even more often. If we evaluate buying behavior and marketing activity, the pharmaceutical market becomes similar to FMCG, despite the specifics of the product.
At this stage, the pharmaceutical industry is one of the most promising sectors of the economy. The pharmaceutical market, as a powerful industrial sector, is one of the five most profitable sectors of the world economy. The pharmaceutical industry, according to OECD classification, is a knowledge-intensive industry and, according to Eurostat, is the world leader among high-tech industries for the creation of gross value added per person employed, with about 1/5 of all research and development spending in the world is in the pharmaceutical industry.
The main factors of the pharmaceutical market growth are increased competition among generics producers and increased consumption of cheap medicines.
Pharmaceutical market in Ukraine is one of the fastest growing (about 20% per year). The market of pharmaceuticals in Ukraine is developing dynamically. Ukraine is among the largest pharmaceutical producers in Eastern Europe. Their production, compared to the same period last year, increased in 2018 by 22.5% in money equivalent and 4% - in commodity terms.
The period of 2016-2018 shows moderate growth, after 2 years of economic decline. Positive trends would not have been possible without macroeconomic stabilization. Since 2016, the exchange rate of the national currency against the U.S. dollar remained relatively stable, oscillating in a narrow corridor, which affected the market for imported drugs, the share of which in 2018 was 62.5% in monetary terms compared to 62% in 2015. According to the State Statistics Service of Ukraine, the dynamics of nominal average wages of the population shows a constant growth, and on average it was 28.5%, which is the main driver of the development of domestic pharmacological medicine. For a more accurate understanding of real incomes of the population, it is necessary to pay attention primarily to the inflation rate and the national currency rate.
Government initiatives in 2016 begin to work, in particular, the abolition of re-registration of medicines, that is, the government decided to cancel the re-registration of medicines registered by the competent authorities of the U.S., Switzerland, Japan, Australia, Canada or the EU as a drug, and to simplify the registration of drugs to treat socially dangerous and serious diseases. The work of the drug reimbursement program, which is a mechanism for reimbursement of the cost of medicines for the population and is funded by the state and/or non-governmental insurance funds. All the above factors have positive consequences and contribute to the recovery and development of the pharmaceutical industry.
It should also be noted that in accordance with the Resolution of the Cabinet of Ministers of Ukraine No. 73 dated March 5, 2014, a pilot project on state regulation of prices for insulin medicinal products and compensation of their cost is being implemented in Ukraine.
Prior to the introduction of the pilot project insulin supply to the population was carried out through procurement of insulin medicines by treatment and prevention institutions through tender and tender-free procedures. After the pilot project was put into effect, insulin medicines were sold through pharmacies, which reimburse their cost from local budgets at the expense of medical subventions and target costs for preferential provision of insulin medicines to diabetes mellitus patients.
At this stage, the pharmaceutical industry is one of the most promising sectors of the economy. The pharmaceutical market, as a powerful industrial sector, is one of the five most profitable sectors of the world economy. The pharmaceutical industry, according to OECD classification, is a knowledge-intensive industry and, according to Eurostat, is the world leader among high-tech industries for the creation of gross value added per person employed, with about 1/5 of all research and development spending in the world is in the pharmaceutical industry.
The main factors of the pharmaceutical market growth are increased competition among generics producers and increased consumption of cheap medicines.
Pharmaceutical market in Ukraine is one of the fastest growing (about 20% per year). The market of pharmaceuticals in Ukraine is developing dynamically. Ukraine is among the largest pharmaceutical producers in Eastern Europe. Their production, compared to the same period last year, increased in 2018 by 22.5% in money equivalent and 4% - in commodity terms.
The period of 2016-2018 shows moderate growth, after 2 years of economic decline. Positive trends would not have been possible without macroeconomic stabilization. Since 2016, the exchange rate of the national currency against the U.S. dollar remained relatively stable, oscillating in a narrow corridor, which affected the market for imported drugs, the share of which in 2018 was 62.5% in monetary terms compared to 62% in 2015. According to the State Statistics Service of Ukraine, the dynamics of nominal average wages of the population shows a constant growth, and on average it was 28.5%, which is the main driver of the development of domestic pharmacological medicine. For a more accurate understanding of real incomes of the population, it is necessary to pay attention primarily to the inflation rate and the national currency rate.
Government initiatives in 2016 begin to work, in particular, the abolition of re-registration of medicines, that is, the government decided to cancel the re-registration of medicines registered by the competent authorities of the U.S., Switzerland, Japan, Australia, Canada or the EU as a drug, and to simplify the registration of drugs to treat socially dangerous and serious diseases. The work of the drug reimbursement program, which is a mechanism for reimbursement of the cost of medicines for the population and is funded by the state and/or non-governmental insurance funds. All the above factors have positive consequences and contribute to the recovery and development of the pharmaceutical industry.
It should also be noted that in accordance with the Resolution of the Cabinet of Ministers of Ukraine No. 73 dated March 5, 2014, a pilot project on state regulation of prices for insulin medicinal products and compensation of their cost is being implemented in Ukraine.
Prior to the introduction of the pilot project insulin supply to the population was carried out through procurement of insulin medicines by treatment and prevention institutions through tender and tender-free procedures. After the pilot project was put into effect, insulin medicines were sold through pharmacies, which reimburse their cost from local budgets at the expense of medical subventions and target costs for preferential provision of insulin medicines to diabetes mellitus patients.
Table of Contents
1. General characteristics of the market
2. Government regulation of the market
3. Main market operators
4. Foreign trade in the market
5. Features of cooperation with India
6. Conclusions and recommendations
LIST OF TABLES:
LIST OF GRAPHS AND CHARTS:
