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Ukrainian Pharmaceutical Market Report

  • ID: 5309374
  • Report
  • April 2019
  • Region: Ukraine
  • 36 pages
  • Pro-Consulting
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.
Note: Product cover images may vary from those shown
1. General characteristics of the market
1.1. Analysis of market development trends in 2016-2018 (history of development, specifics, problems, market influence factors)
1.2. General market indicators
  • Sales of pharmaceuticals in monetary terms
1.3 Market segmentation (Ukrainian drugs / import / import from India; by group; regional)

2. Government regulation of the market
2.1 Basic laws regulating the industry (list, brief summary and specifics of laws - certification, registration and restrictions)
2.2. Taxes and duties on the market (general taxation of business; import and export duties, plans to change them (if any))
2.3 Peculiarities of public procurement (general principles and conditions)

3. Main market operators
3.1 List and description of the largest operators of the Ukrainian pharmaceutical market (producers, distributors and importers).
3.2 Segmentation of operators (by partner countries (investors or importers)
3.3. Market shares of major suppliers of pharmaceuticals in Ukraine

4. Foreign trade in the market
4.1. Export of drugs from Ukraine
  • Export dynamics in 2016-2018.
  • Export structure. TOP drugs secretion
  • Share of exporters (sellers in Ukraine)
  • Buyers' shares (TOP-5 in total)
  • Export geography
4.2. Import of drugs into Ukraine
  • Import Dynamics in 2016-2018.
  • Import structure. TOP drugs secretion
  • Share of importers (sellers in Ukraine)
  • Share of sellers (TOP-5 in total)
  • Geography of imports
5. Features of cooperation with India
  • Dynamics of exports to India
  • Dynamics of imports from India
  • Export structure. TOP distribution of drugs for export to India
  • Import structure. Allocation of TOP drugs from India
  • Trade Partners in India (TOP 5 Exporters and TOP 5 Importers)
6. Conclusions and recommendations
6.1 Conclusions and forecast trends of market development in 2019-2022.
6.2 Potential for market development (forecasted figures based on comparison with per capita drug consumption in Eastern Europe)
6.3. Risks of entering the market for foreign companies

LIST OF TABLES:
1. Dynamics of the national currency exchange rate and wage growth in Ukraine.
2. Main operators on the Ukrainian market
3. Segmentation of the largest operators in Ukraine by partner countries (importers)
4. Ranking of medicine brands by volume of exports in 2018 in monetary terms, position in the rating
5. Rating of imported brands of medicines by volume of pharmacy sales in Ukraine in 2016-2018 in monetary terms, position in the rating
6. Rankings of pharmaceutical brands by volume of exports to India in 2018 in monetary terms, position in the ranking
7. Ranking of medicine brands by volume of imports from India in 2018 in monetary terms, position in the rating
8. Projected indicators of population welfare in 2019-2021, %
9. Per capita medicine consumption in Ukraine and Eastern European countries in 2015-2017, USD
10. Segmentation of market risks
11. Risks on the pharmaceutical market in Ukraine

LIST OF GRAPHS AND CHARTS:
1. Dynamics of official average salary in Ukraine
2. Dynamics of retail sales of pharmaceuticals for 2016 - 2018 in monetary terms, UAH billion
3. Dynamics of consumer price growth for various categories of goods in 2018 as compared to 2017.
4. Structure of pharmacy sales of medicines by price niches in physical terms for 2016-2018.
5. Structure of pharmacy sales of pharmaceutical products manufactured abroad and in Ukraine in physical terms, %
6. Structure of pharmacy sales of pharmaceutical products manufactured abroad and in Ukraine in monetary terms, %
7. Share of medicine imports from India in monetary terms, UAH billion %
8. Regional structure of sales of pharmaceuticals manufactured in India in monetary terms, %
9. Sales structure of pharmaceuticals in terms of Tier 1 Tier 10 ATC groups in monetary terms in 2018, %
10. Market operators' shares by volume of pharmacy sales of goods in the 'basket of pharmacies' in Ukraine in monetary terms, %
11. Share of major pharmaceutical distributors in Ukraine for 2017, %
12. Dynamics of export of pharmaceutical products from Ukraine in 2016-2018 in monetary terms, billion UAH.
13. The share of the largest exporters of pharmaceutical products from Ukraine in monetary terms, %.
14. Share of largest buyers of pharmaceutical products in Ukraine in monetary terms, %
15. Structure of pharmaceutical products export from Ukraine in 2016-2018 by country in monetary terms, %.
16. Dynamics of Imports of Pharmaceuticals to Ukraine in 2016-2018 in terms of money, billion UAH
17. The share of the largest importers of pharmaceutical products to Ukraine in monetary terms, %.
18. Share of the largest sellers of pharmaceutical products in Ukraine in monetary terms, %
19. Structure of imports of pharmaceuticals to Ukraine in 2016-2018 by country in monetary terms, %.
20. Dynamics of pharmaceutical products export to India in 2016-2018 in terms of money, mln.
21. Dynamics of imports of pharmaceuticals from India in 2016-2018 in monetary terms, UAH billion 21.
22. Top 5 companies importing pharmaceutical products from India in monetary terms, %.
23. The Top 5 companies importing pharmaceutical products from India in monetary terms, %.
24. Forecast of annual consumption of pharmaceutical products in Ukraine in 2019 - 2021 in monetary terms per capita, USD
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