Atlas "Ukrainian Pharmaceutical Industry"

Page 1

INFOGRAPHIC ATLAS

PHARMACEUTICAL INDUSTRY IN UKRAINE

37 pages of infographics

2018



INTRODUCTION Why did we create this handbook? Medicine is one of important, inherent parts of our life. However, development and production of a new medicine is a difficult and time-consuming process. Constant demand on a healthy way of life ensures market development — which is one of the leaders by the number of scientific researches and, at the same time, this market plays a significant role in economic paradigm in the future of Ukraine. Pharmacy in Ukraine is already a well-established industry: with a lot of players, and absence of the monopoly. The successful pharmacy development not only facilitates access of Ukrainians to medicines, but, together with other innovative industries, it can boost an export and economic growth.

Content GLOBAL PHARMACEUTICAL

1 INDUSTRY

• pharmaceutical manufacturing process • growth forecast • TOP companies • global market PHARMACEUTICAL

3 MARKET OF UKRAINE • market dynamics • sales structure • advertisement • distribution

PHARMACEUTICAL INDUSTRY

2 IN UKRAINE

• history of the development • investment in the industry • market leaders • employment

TRADE IN

4 PHARMACY • trade dynamics • main partners • global leaders

Nowadays, weak economy of Ukraine hinders the development of pharmaceutical production. To reach the level of global pharmaceutical brands, Ukraine requires a great domestic demand to provide financing of scientific researches. Ukraine has a great potential in this area, which is yet to be implemented.

3


IMPACT OF MEDICINES ON LIFE EXPECTANCY Longevity is increasing for different population categories*

Longevity growth breakdown depending on the reason, 2000–2009, years 2000

65

70

2009

+0,95

80

year

In the age of 65

95% New pharmaceuticals were one of the main reason of longevity increase in developed countries from 2000 to 2009.

New pharmaceuticals were launched after 1990

73%

At birth

30 20

50 40

70

Other reasons

(income growth, education, immunization, access to the healthcare system etc.)

27%

+1,74 year

60 2000

Source: Lichtenberg, F: Pharmaceutical innovation and longevity growth in 30 developing OECD and high-income countries, 2000–2009

5%

2009

*The research was committed in 30 developed and developing countries.

4


GLOBAL PHARMACEUTICAL INDUSTRY


GLOBAL PHARMACEUTICAL MARKET Breakdown of the world pharmaceutical market SALES in 2016*, % USA and Canada

Europe**

21,5%

49,0% The USA and Canada pharmaceutical markets constitute the half of global sales.

8,3% Japan

16,4% 4,7%

Africa, Asia, and Oceania

Latin America

Regional breakdown of the gross value added in the pharmaceutical industry, %

33,8% 7,6% Source: IFPMA, EFPIA

25,3% 31,0%

34,8% 27,6%

2006

32,3%

2014

7,7%

Latin America, Africa and Oceania Europe North America

The manufacturing process itself slightly transfers to the developing countries. Including this tendency, Ukraine has a good chance to enhance own pharmaceutical industry.

Asia

*pharmacy and hospital sales in manufacturer’s prices

**including Turkey and the Russian Federation

6


PHARMACY MARKET GROWTH FORECAST The expected growth of the world expenditure on pharmaceuticals, bln US dollars

+380

bln US dollars

66%

9% 24%

Developed countries

1 485

Countries with developing pharmaceutical markets Other countries

956

976

1 005

1 105 1 055 1 068

Prescription drugs

Pharmaceutical market growth by 5-6% each year. 24% of the growth occurs in the developing countries. Such state of affairs leads to the appearance of less competitive, comparing to developed countries, pharmaceutical markets.

2011

2012

2013

2014

Source: IFPMA, Evaluate Group

2015

2016

2021

The prescription drugs (most of them are authentic) are still the major expenditure.

7


ROLE OF PHARMACY IN ECONOMY The world’s biggest companies by revenue, bln US dollars

China Resources National

75,8

China

Johnson & Johnson

71,9

USA

53,4

Roche Group

52,8

Pfizer

52,6

Bayer

Switzerland USA

49,4 47,8

Sinopharm

Pharmaceutical industry

7,6%

Germany

Novartis

Other industries

Switzerland

For decades, pharmaceutical manufacturing plays a sustainable role in economies of developed countries. In some, it constitutes a significant share.

China

Sanofi

41,4

France

39,8

Merck

37,6

GlaxoSmithKline

The pharmaceutical manufacturing input into establishing added value in the USA, %

USA

United Kingdom

Gilead Sciences

30,4

USA

AbbVie

25,6

USA

23,0

AstraZeneca

23,0

AMGen

21,9

Teva Pharmaceutical Industries

Source: Fortune, OECD

The role of pharmaceutical manufacturing in economy of Ireland, % of gross value added

United Kingdom

15 pharmaceutical manufacturers are included in the world’s 500 biggest companies by revenue ranking.

0,86%

0,60%

0,33%

0,35%

0,35% 0,42%

0,68%

0,69%

0,77%

0,83%

0,50%

USA

Israel

1970

1975

1980

1985

1990

1995

2000

2005

2010

2014

2015

8


PHARMACY IS AN INVESTMENT LEADER Ranking of industrial sectors by overall sector R&D intensity in 2015*, %

Worldwide prescription drug & OTC pharmaceutical sales by technology, %

(R&D as percentage of net sales)

15,0%

10,6%

Pharmaceuticals & biotechnology

Software ft. computer services

5,9%

Automobiles ft. parts

4,3%

Healthcare equipment ft. services

3,2%

Leisure goods

2,9%

Chemicals

2,8%

Aerospace ft. defence

18%

75%

25%

70%

30%

2010

Industrial engineering

3,6%

82%

2016

2022 conventional technology biotechnology Pharmacy is a science-intensive industry. Its technological capability constantly develop. Thus investment in pharmacy is increasing.

The pharmaceutical industry holds leading position regarding income based on R&D investment.

Worldwide total pharmaceutical R&D spend forecast, bln US dollars

128

127

128

136

136

138

2008

2009

2010

2011

2012

2013

Source: EFPIA, Evaluate Group

143

148

157

158

161

166

171

176

181

2014

2015

2016

2017

2018

2019

2020

2021

2022

*Data relate to the top 2500 companies ranked by total worldwide R&D investment.

9


NEW DRUG DISCOVERY SPENDINGS Estimated full cost of bringing a new chemical or biological entity to market,

2 558

mln US dollars in prices of 2013

1 043 413

179

1970 – early 1980

On average, one drug development process lasts for 12-13 years and costs more than $2,5 bln.

1980 – early 1990

1990 – mid 2000

2000 – mid 2010

Number of new drugs approved by US Food and Drugs Administration, pieces

24

7

2001

Source: EFPIA, Evaluate Group

31

2004

7

16

2007

In order to stimulate an investment, the manufacturer gets a patent, which ensures an exclusive right to production and sales. In the USA, as well as in Ukraine, the term of the patent is 20 years.

9

Chemical

15

2010

Biological

11

25

2013

10

13

14

2016

10


NEW DRUG DEVELOPMENT

New medicine development process in developed countries Research discovery and development

Clinical trials

pre-clinical trials

Duration

Phase 3

Phase 2

2 months 2 years

3–6 years

Budget share

Phase 1

4 years

9%

21%

Approval

29% 11%

Market entry Phase 4

0,5–2 years

indefinite

5%

17%

1

1

75%

33%

Regulatory examines the results of the trial and make a decision.

Monitoring the drug efficiency and its side effects (combined investment).

8,9% uncategorized expenditures

5 000–10 000

Chances of success

Compounds

250

0,01%

Determining the goal of medicine, and possible compounds that might reach that goal.

Source: EFPIA, IFPMA, FDA

Researching the effectiveness and potential risks of the medicine before clinical trials.

5

70%

33%

25–30%

Studying the possible side effects, treatment efficiency, interaction with and comparing to existing medicines.

11


THE PHARMACEUTICAL INDUSTRY IN UKRAINE


HISTORY OF THE INDUSTRY 1859

1930

1947

1992

2009

The very first pharmaceutical factory was established — Beecham Group (now — GSK), the United Kingdom.

Kyiv Branch of the Ukrainian Institute of Experimental Endocrinology was established (basis for future establishment of Darnitsa pharmaceutical factory).

Artel named after Kirov’ was established — the predecessor of Borshchahivskiy Chemical and Pharmaceutical Plant.

Drug production in Ukraine almost stopped. Depreciation of fixed assets reached 85%.

GMP standards are implemented

1910s An active development of medicine production and pharmacy. Lab entities affiliated with drugstores produced mostly herbal pharmaceuticals. Synthetic pharmaceuticals and raw pharmaceutical materials were imported (mostly from the German Empire).

1937

2011

1995

1940s

early

M.V. Lomonosov Chemical and Pharmaceutical Plant — the very first ukrainian factory producing synthetic drugs, was launched in Kyiv (now — Farmak).

Pharmaceutical industry became sustainable. In 1975 the USSR covered not only domestic demand in drugs and raw pharmaceutical materials but exported 20% of pharmaceutical production to nearly 20 countries.

Most of facilities successfully back, however, some were lost.

Due to political, economic and social changes pharmaceutical industry experienced a recession.

1944

early

1990s

The establishment of a Soviet government — the population did not have an access to necessary health care. Import was stopped, drugs and medical products became a deficit.

1910 – early 1920

1930–1939

The factory named Helenica was established in Kharkiv (now — Pharmaceutical company “Zdorovya”).

Governmental initiative on import substitution. The deficit of raw materials and drugs increased.

1907

mid

1930s

Sustainable development of the pharmaceutical industry.

The pharmaceutical workshop of Cherkasy city dairy factory was launched (now — Pharmaceutical corporation Yuria-Pharm).

The drug price was reduced — losses of 12 mln karbovanets income. As a consequence, pharmaceutical industry of Ukraine provided only 21% of Republic’s turnover, despite the enough industrial capacities.

1925

Source: Pharmaphorum, PAT Farmak, PrAT Darnitsa pharmaceutical factory

1970s

Pharmaceutical facilities were evacuated abroad, because of World War II.

The renovation of existed and creation of a new pharmaceutical scientific and educational entities.

1999

There was a severe The Vth Congress of Pharmacists shortage of medical in Kharkiv — the first in production (including basic independent Ukraine. ones: iodine, analginum, syringes etc) because of Ukraine signed the ineffective governance of drug Medicrime manufacturing and its Convention*. A sharp increase of drug distribution in Ukrainian SSR. production in Ukraine (by 11,5%).

Kyiv Vitamin Factory was established.

1920s

late

1963

mid

Ukraine accessed to the Convention on the Elaboration of a European Pharmacopoeia.

2000s 34% of produced pharmaceutical products were exported.

1968

2016

on January 1, the Medicrime* Convention entered into force.

2012

Darnitsa pharmaceutical factory was established. New production facilities were constructed.

From this moment drugstore services and medicines became free of the VAT.

Ukraine (for now, the only CIS state) become a member of Pharmaceutical Inspection Co-operation Scheme.

1954

1993

2011

*Council of Europe Convention on the counterfeiting of medical products and similar crimes involving threats to public health.

1997

13


PHARMACY IN UKRAINIAN ECONOMY

Number of employees in the pharmaceutical industry in 2017, % of the total number

Production of pharmaceuticals in 2016, % of GDP

20,1

0,84%

0,29%

23,3

bln hryvnias

ths people

1 767

192

bln US dollars

Import of pharmaceuticals in 2017, % of total import

Source: SSC of Ukraine; SFS of Ukraine

3,57%

0,44%

bln US dollars

Export of pharmaceuticals in 2017, % of total export

14


DRUG DEVELOPMENT PROCESS Value-added chain in pharmaceutics

79%

22

7

ln

b 2,6

$

400

U

EN

T

ED G LO M

DIS

G N AN

N

M

IO

IN IN A T ES OB ENS LIC

U

AT

FA

TR

CT

IS

L I C AA L N LI IC EC LIN R P DC AN ALS I TR

U

G

RI

RE

Source: SSC of Ukraine, SMDC

LS

re

IA

ta en s. m est nie inv mpa D o R& c of e by d a m

99%

A EN RK TR ET Y

TR

ths ents

co f 20 o as

IS

EA CH NT AR PME ING E S RE ELO ENT V T E D D PA AN

14llege s1t7u/d18*.

CO

TI

ID

CS

N

TR

O

EA

TI

TM

CA TS AIN LIS TR CIA E SP

G

7 t ke 01 ar n 2 i m s d ne in ici n-k ed th i m w o gr

7%

.

IBU

TIO

UM

ER

N

MA R PR KET OM ING OT AN ION D

FA C AN ILITIE D M S, AN COM AG M EM OD EN ITY T

*pharmaceutical and pharmacy industry departments (universities, academies, institutions)

TR

NS

$60

0m

115

spe ad ndin ver gs tis on ing dr in ug 20 17 .

com to pan me ies dic are ine lic ma ens nu ed fac tur

**as of the first quarter 2018

ln

ing

**

. 15


PHARMACEUTICS IS A GOOD EMPLOYER TOP-5 industries by an average monthly wage in January 2018,

Regional breakdown of employees in 2016, %

ths hryvnias

7,7% 3,8% 2,5% 1,4% 1,2% 5,1%

32,9

Air transport Kyiv Kharkiv obl.

15,4

Pharmaceutical manufacturing

15,2

Financial and insurance services

12,3

Information and mass media

11,0

Coal mining

Cherkassy obl.

Pharmaceutical manufacturing is one of the most paid industries in Ukraine.

Kyiv obl. Lviv obl. Other obl.

400 ths people —

total number of engaged people in the pharmaceutical industry in Ukraine.

Average number of employees in pharmaceutical manufacturing, ths people

17,0

2010

19,0

2011

Source: SSC of Ukraine

20,0

2012

21,0

2013

21,9

2014

20,9

2015

21,7

2016

22,6

2017

24,0

2018 16


INVESTMENT IN PHARMACY Compound annual growth rate of capital investment in 2010–2017, %

Direct foreign investment as of 1 January, mln US dollars

80,4

18%

13%

Pharmaceutical manufacturing

Other industries

Pharmaceutical industry shows high tempo of capital investment growth, comparing to total investment. The growth of investment in 2014–2015 proves the reliability and stability of the industry.

40,7

83,6 71,7 49,5

43,0

2010

2011

2012

2013

2014

2015

45,5

2016

Capital investment in pharmaceutical manufacturing industry,

38,8

38,2

2017

2018*

1 846

mln hryvnias

1 413

1 623

1 598

2015

2016

1 073 803

566

566

2010 Source: SSC of Ukraine

824

2011

2012

2013

*as of 31 December 2017

2014

2017 17


CLINICAL TRIALS Financing structure of clinical trials in Ukraine*, % Clinical trials provide an advantage for both the state and a patient. The patient gets free healthcare services and innovative medicines. While the state does not pay for seriously ill patients treatment. In addition, clinical trials are also an opportunity for further drug registration without supplementary research and investment in medical facility infrastructure.

Pharmaceutical companies

93%

Other entities

The low number of clinical trials in Ukraine is caused by complex regulation, unreliable IP protection, and drug research taxation.

7% Number of Clinical Trials by Countries* per 100th of population

20,7

9,9

1,0 Ukraine

2,0

2,8

Chile

Romania

Source: ClinicalTrials.gov

4,1

Poland

5,4

Germany

10,9

6,7

United Kingdom

USA

*those are continuing as of the end of the first quarter 2018

France

Switzerland 18


INTELLECTUAL PROPERTY Why pharmaceutical company should care about intellectual property?

protects product's name

protects product's package

Company which submitted application for the drug registration and obtaining marketing authorization

At the stage of drug registration filed to prevent drugs from being registered

IP protection mechanisms in pharmaceutical industry Patent for industrial design

Respondents Lawsuits from the holders of the IP rights

• to protect its unique brand • to protect technologies • to fully monetize own developments

Certificate for trade mark

Lawsuits related to IP

Сoncerning already registered drugs

The State Expert Center of the Ministry of Health of Ukraine

filed to prevent or ban drug sales, including tender sales

The Ministry of Health of Ukraine Company received drug registration/marketing authorization

Patent for invention or utility model

protects pharmaceutical agents, compositions, production technology and method of treatment

Lawsuits against the holder of the IP rights to cancel documents providing title to IP:

Holder of title

— Certificate for trademark — Patent for industrial design — Patent for invention or utility model

Ministry of Economic Development and Trade of Ukrainе

N m am e e d ic o in f t e he ™

Specifics of litigation in pharmaceutical industry

Source: Aequo

Preliminary injunction measures are widely used

Prohibition of issuing recommendations on drug registration, prohibition of import and drugs clearance etc.

Most cases are followed by forensic examination

Requires specific expertise in areas of IP, chemistry and biology.

Competitors might get an access to registration dossier

Which is usually requested by the court during cases about violation of right on invention and utility model. 19


PHARMACEUTICAL MANUFACTURERS Regional breakdown of pharmaceutical manufacturers as of March 2018 — one entity

12 Sumy obl.

Kyiv obl. Zhytomyr obl.

29 14

Lviv obl.

Kyiv Ternopil obl.

Ivano-Frankivsk obl.

Kharkiv obl.

Poltava obl. Cherkasy obl.

Luhansk obl.

Vinnytsia obl.

Chernivtsi obl.

Kirovohrad obl.

Dnipropetrovsk obl. Donetsk obl.

There are

115 licensed companies,

Mykolaiv obl.

Odessa obl.

Zaporizhia obl. Kherson obl.

manufacturing medicines in Ukraine.

AR of Crimea

Source: SSC of Ukraine

20


LEADERS OF UKRAINIAN PHARMACY MARKET TOP-10 companies based on sales* of pharmaceuticals** in 2016, mln US dollars (pharmacy purchase price)

88

Farmak

59 e

nc

Fra

Sanofi

58

33,3%

Share of TOP-10 companies

Un

ited

Sw

itz

er

Kin

gdo

m

d

y

an

an

Jap

Source: PharmaBoardroom

Darnitsa

50

Zdorovje Group

49 41

m er

G

lan

35

53

49

Italy

Arterium

38

Berlin-Chemie/Manarini GlaxoSmithKline Novartis Bayer HealthCare Takeda

*retail and tender data

**OTC and prescription drugs

5,6%

Ukrainian companies are the main players on domestic market.

3,8%

3,7%

3,4% 3,2% 3,1% 3,1% 2,6%

Country of Origin Ukraine

2,5% 2,3%

Other countries

21


FINANCIAL RESULTS OF PHARMACY Leaders among joint-stock companies by revenue,

Share of pharmaceutical companies which were profitable of total number, %

mln hryvnias

2 734

2016

677

341

145

113

110

77%

2016

2 162

2015

405

384

173

127

57

76%

2015

1 530 2014

241

296

Farmak

Darnitsa pharmaceutical factory

45 Kyiv Vitamin Factory

156 Corporation Arterium

46 Borshchahivskiy Chemical and Pharmaceutical Plant

66%

2014

Total income of pharmaceutical manufacturers,

mln hryvnias

Source: SMIDA, SSC of Ukraine

22


PHARMACY MARKET OF UKRAINE


UKRAINIAN PHARMACY MARKET DYNAMICS Drug sales,

Retail

mln packages

1 267

1 186

177

1 117

164

2010

1 115

1 046

132

2012

Hospital procurement

109

95

2014

2016

2017

Drug sales have a positive tendention and slightly get the pre-crisis level.

61,2

Pharmaceuticals market,

bln hryvnias

19,7

23,0

27,0

3,5

3,7

4,6

2010

2011

2012

Source: Ezhenedelnik Apteka 1–12

30,4

34,8

41,5

Drug sales structure in money terms, %

50,6 19%

5,8

5,4

7,6

8,0

8,8

2013

2014

2015

2016

2017

13%

15%

81%

85%

87%

2007

2012

2017 24


PHARMACEUTICAL CONSUMPTION Medicine consumption by countries, US dollars per capita 587

501

383

271

244

113

101

80

Mexico Chile 2016

Belarus

2016

67

Malaysia 2016

Ukraine

49

47

Vietnam

Peru

2016

2016

2017

2016

Medicine consumption structure, %

Estonia Portugal

62

2016

2016

Prescription drugs

Sweden Canada

2016

Ukraine holds one of the lowest position in medicine consumption per capita. It can be explained by low purchasing power of Ukrainians and weak governmental drug reimbursement programs. Ukrainian market has a potential for growth and changing of medicine consumption structure, but it is possible only if economy grows.

2016

OTC drugs

96% World 2016

41 %

2016

4%

United Kingdom

59% Ukraine 2017*

Medicine consumption in Ukraine, US dollars per capita

63

2010

73

2011

87

99

2012

2013

Source: Ezhenedelnik Apteka 1–12, Evaluate Group, PharmaBoardroom, OECD, International Trade Administration

74

2014

*only retail sales (87.4% of total)

52

54

62

2015

2016

2017 25


RETAIL MARKET STRUCTURE Pharmacy sales structure divided by the holder of license, %

ey

on

M -k

in

d

rm

te 2011 2014 2017

In

20%

2011 2014 2017

Ukrainian pharmaceuticals Foreign pharmaceuticals

Source: Ezhenedelnik Apteka 1, 6, 12

26


DRUG PRICE DYNAMICS IN UKRAINE Pharmaceutics price changes divided by the holder of license,

One package average price by holder of license in 2017, hryvnias

retail sales, %

Foreign pharmaceutics are more expensive because of distinct composition.

Imported

55%

Domestic

128

46%

31

41%

Foreign pharmaceutics are more sensitive to economic fluctuations, whether domestic pharmaceutics counter inflation equally by periods.

27% 8% 15% 14%

15% 9%

8%

2013

2014

Source: Ezhenedelnik Apteka 4, 6, 8, 10, 12

2015

2016

2017

27


MEDICINES PRICE REGULATION Maximum Markup on some Groups of Medicines established by the Law, % Medicines that are purchased fully or partially with the funds of the state or municipal budget (wholesale price included in the Register of the Medicines’ Wholesale Prices) (Register).

Medicines included in the National List of Essential Medicines and Medical Products.

Consumer

Retailer

Wholesaler

Medicines for treatment of cardiovascular disease, diabetes of the second type, bronchial asthma, which are purchased with the budget funds and/or the prices of which are reimbursed with budget funds.

Retail price

+25%

+10%

+15%

Procurement price

+10%

+10%

+10%

not regulated

not above the price indicated in the Register

not regulated

Wholesale price

Manufacturer/ importer Resolution of the Cabinet of Ministers of Ukraine dated 17 October 2008 No. 955 On the measures of price stabilization on medicines and medical products.

$

2018 The price control is carried out through inspections (both scheduled and unscheduled) of the State Service of Ukraine on Food Safety and Consumers Protection.

Source: Aequo

The moratorium on inspections of business operations is in force until 31 December 2018. The Law of Ukraine “On temporary peculiarities of exercising state oversight (control) of business operations”

Resolution of the Cabinet of Ministers of Ukraine 09 November 2016 No. 863 On the Introduction of the Reimbursement of the Medicines’ Costs.

Until 31 December 2018 an unscheduled inspections may be held in case of: — reasonable request of an individual; — written request of an entity (voluntary); — court decision.

In case of price control violations: — the expropriation of the improperly obtained revenue; — fine of 100% of the improperly obtained revenue.

28


UKRAINIAN EQUIVALENTS* Comparison of the price of domestic and foreign pharmaceutics Imported drugs

Imunal

Domestic drugs

Voltaren

Nurofen

Aspiryn

Fastum Hel

Viahra

Mezym Forte

No-shpa

4

4

4

1

8

8

8

1

1

1

1

1

1

1

1

Ekhinatsei nastoianka

Dyklofenak D

Ibuprofen

Atsetylsalitsylova kyslota

Potentsiale

Pankreatyn-zn

Drotaveryn

F-hel

16

Source: based on open data

*does not mean full biological compliance

29


MOST POPULAR DRUGS IN UKRAINE Leaders of pharmacy sales (in money terms)

Indication of application

2015

2016

2017

Aktovehin

1

1

1

Treatment of distal blood flow disruption, diabetic polyneuropathy etc.

No-Shpa

2

2

2

Symptomatic treatment of pain (tooth, menstrual pain, headache, also pain caused by cold and flu).

Natriiu Khloryd

3

3

3

Treatment of sharp pain, primary dysmenorrhea.

Nurofen

4

4

4

Production of pharmaceutical fluids.

Nimesyl

5

5

5

Symptomatic treatment of smooth muscle spasm, related to gastrointestinal diseases.

Esentsialie

6

6

6

Steatohepatitis, acute and chronic hepatitis, liver cirrhosis, toxaemia etc.

Tsytramon

7

7

Improving the capillary bloodstream; during blood losses; improving the blood flow.

Spazmalhon

8

8

8

Therapy of weak or moderate pain syndrome.

9

9

Symptomatic treatment during smooth muscle spasm of vitals.

10

Acute and chronic infection of nose sinus.

11 12 Reosorbilakt

13

Synupret

17

1

Rating position

Source: Ezhenedelnik Apteka 12

30


SALES OF PHARMACEUTICAL PRODUCTS Wholesale turnover of pharmaceutical products in 2016, bln hryvnias

94

Retail turnover of the entities by the category of pharmaceutical products of total turnover

bln hryvnias

9% 8%

24 6% of total turnover

including sales of products, manufactured in Ukraine

7%

7% 6%

Share of pharmaceutical products*, sold by entities’ distribution network

55

2010 2016

Source: SSC of Ukraine

6

7

2005

2006

7% 6%

5%

2006

7%

10

7%

49

6%

41

5%

13

16

19

22

25

29

32

52 50

%

*manufactured in Ukraine

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

31


REGIONAL BREAKDOWN OF THE MARKET Retail sales of pharmaceuticals by the region in 2016, bln hryvnias

0,8

Rivne obl.

Volyn obl.

0,9

6,9 1,3

0,9

1,1

1,3

Zakarpattia obl.

Kyiv obl.

1,4

1,1

1,8

Vinnytsia obl.

0,5

Poltava obl.

1,7

4,9

Cherkasy obl.

Dnipropetrovsk obl.

Luhansk obl.

Mykolaiv obl.

1,7 Donetsk obl.

1,3

3,9

Kharkiv obl.

1,0 Kirovohrad obl.

Chernivtsi obl.

4,8

1,9

1,7

Khmelnytskyi obl.

Ivano-Frankivsk obl.

Sumy obl.

Kyiv

Ternopil obl.

Lviv obl.

1,3

Chernihiv obl.

Zhytomyr obl.

2,6

1,3

2,9 1,4

Zaporizhia obl.

Kherson obl.

Odesa obl.

Source: SSC of Ukraine

32


WHOLESALE AND RETAIL DEALER NETWORK TOP-3 distributors by the share of market in 2017, % ≈35

≈30

≈23

≈12 Distribution market is quite concentrated. The market share of three biggest companies — 79%.

Optima-pharm

BaDM

(Kyiv)

(Dnipro)

Venta

Other entities

(Dnipro)

TOP-5 pharmacy networks by number of trade spots in 2017

1

2

Apteka-Magnolia

Sirius-95

Source: Ezhenedelnik Apteka 12, 13

*estimates

(Zaporizhia)

(Kyiv)

3

Hamma-55 (Kharkiv)

4

Med-Service Group (Dnipro)

5

Pharmastore (Kyiv)

33


PHARMACEUTICAL RETAIL NETWORK Number of trade spots by the regions, as of 1 January 2018, pc

489

Rivne obl.

Volyn obl.

562

1 244 Lviv obl.

764

1 575 644

557

Chernihiv obl.

Sumy obl.

Kyiv

Zhytomyr obl.

626

457

798

935 Kyiv obl.

Ternopil obl.

789

Khmelnytskyi obl.

Ivano-Frankivsk obl. Zakarpattia obl. 515

839

757

Poltava obl.

1 568

Cherkasy obl.

Vinnytsia obl.

Kirovohrad obl.

1 409 16,2 Drugstore

16,1

Dnipropetrovsk obl.

581

Dynamics of trade spots number, ths pc

845

Luhansk obl.

911 Donetsk obl.

Mykolaiv obl.

558 Kherson obl.

Odesa obl.

346

Kharkiv obl.

577

Chernivtsi obl.

15,3

1 363

765

Zaporizhia obl.

One drugstore income per month in terms of locality, for the third quartet 2017, ths hryvnias

50 7

24 7

4,4

Jan. 2016

4,4

Jan. 2017

4,3

Jan. 2018

Source: Ezhenedelnik Apteka 13

Pharmacy Village

Town

City 34


ADVERTISEMENT OF PHARMACEUTICALS Spending on advertising by promotion channels in 2017, mln US dollars

Investment in TV advertising, mln US dollars

607 587

Tele v (dir ision ect + sp adv ons ertis ors ing hip )

4 2%

, +48

Pre

ss

1,8

20

16

20

14

410

30

-44

327

Rad

%

io

,3 +25

20

15

,4%

TOP-5

TV-channels by revenue from pharmaceuticals advertising

1

1+

Leaders in 2017, mln

US dollars

er

Int

e ain

115 107

r

104

B

80

V

38

Uk ST

ICT

TOP-5

pharmaceuticals brands by spendings on TV advertising

A -SP

NO

SE

ES

LE

IA NT

N

E OF

R NU ะก ะ ะก S EK LIN

12 11 9 9 9

TOP-5

pharmaceutical manufacturers by spendings on TV advertising

k ma

)

A (U

r

Fa

) (FR i f no ) Sa (CH A) z o (U nd rm Sa ha m

su

Ku

P

G

) UK *GlaxoSmithKline *( K S Consumer Healthcare

29 19 14 14 10

Source: Ezhenedelnik Apteka 15

35


PROMOTION OF PHARMACEUTICALS Structure of promotion channels among experts in the field of healthcare in 2017, % Promotion efficiency among doctors,

53,8%

Promotion efficiency among pharmacists,

45,1%

Promotion through medical representatives

dividing by holder of the license in 2017, %

dividing by holder of the license in 2017, %

ція

ан

Фр

Promotion

Doctors

Pharmacists

70%

66%

Advertisementthrough 10,4% specialized press 12,7%

30%

Ве

ли

38%

Ш

ка

ве

ія

он Яп

Foreign Ukrainian

Source: Ezhenedelnik Apteka 14

на чи

еч

ім

Drug prescription

ита

нія

ар

Н

62%

йц

6,6%

Бр

ія

8,9%

13,4%

6,9%

34%

9,3%

POS-materials

Італія

9,1%

TV-advertising Remote communication (phone calls, SMS etc.)

35%

8,3% 7,0%

Conferences/seminars

8,5%

Other (sales promotion, mailing, e-mailing)

What is promotion Despite an ordinary advertising, the great importance on pharmaceutical market belongs to promotion. It means spreading information about existing and new pharmaceuticals directly among experts in the field of healthcare.

Promotion

65% Drug prescription

What is presented here Data on promotion efficiency was received through telephone survey from former experts in the field of healthcare.

36


TRADE IN PHARMACY


GLOBAL EXPORT LEADERS TOP-10 exporting countries of pharmaceutical products in 2016, bln US dollars

1

2

3

4

5

6

7

8

9

10

77,1

67,5

47,0

42,0

32,6

31,8

30,1

21,2

16,7

13,0

USA Germany

Belgium

United Kingdom

Ireland

France

Italy

Netherlands

India

61

0,18

Ukraine

Switzerland

Source: UN Comtrade, SFS of Ukraine

Ranking position

38


GLOBAL IMPORT LEADERS TOP-10 importing countries of pharmaceutical products in 2016, bln US dollars USA Germany

Belgium

United Kingdom

Switzerland

Japan

France

Italy

China

Spain

Ukraine

92,5

49,1

34,9

32,8

24,7

24,4

22,1

21,3

20,8

13,9

1,6

1

2

3

4

5

6

7

8

9

10

45

Source: UN Comtrade, SFS of Ukraine

Ranking position

39


EXTERNAL ECONOMIC ACTIVITY External trade of medicaments in Ukraine, 2017, mln US dollars Export

11

Import

1 133

144 32

CIS countries

Europe

0,7

78

17

191

0,5

America

4

0,5

Asia

Africa

1

Australia and Oceania

Pharmaceutical products trade flows in Ukraine, mln US dollars Export

199

Import

2 460

2010 Source: SSC of Ukraine

195

2 874 2011

243

251

3 303

3 095

2012

2013

256

2 473 2014

155

184

192

1 367

1 607

1 767

2015

2016

2017 40


DRUG EXPORT FROM UKRAINE 1

TOP-10 drug export directions from Ukraine in 2017, mln US dollars

51,2

Uzbekistan 2

Russia

26,1 3

oun

er c

Oth

10

trie

La

tv

yz

Vie

ia

n

2

Geor

gia

4 3 3

m

11

10

Belarus

16,6

Be

Source: SSC of Ukraine

1

10

Ru

Kyrgyzstan

8 5 6

12,4

9,8

7

4,9

Vietnam

7,4 Georgia

Azerbaijan

ss

ia

Kazakhstan

lar us

ld Mo

4,8

Moldova

7

ova

6

Azerbaijan

Share of total export, %

9

4

tan

is ek

b

Uz

30

tna

sta

5

rg

17,3

s

Ky

Kazakhstan

3,7 Latvia

41


DRUG IMPORT IN UKRAINE TOP-10 drug import directions in Ukraine in 2017, mln US dollars

1

Germany

279,7

10

47,2

USA

9

52,0

2

India

128,5

y

8 Austria

ia ven

Italy

6 5

61,2

United Kingdom

62,9 Hungary

Fran

ce

ry nga

Slo

6

89,0

Austria

ly

Sp ai n

58,6

116,9

Hu

United Kingdom

Source: SSC of Ukraine

7

4

India

Slovenia

Ita

4 4 4

57,4

rm

an

34

France

9

4 4

3 A

US

8

3

Ge

19

O un the tri r es

co

Spain

42


OTHER PHARMATHEUTICAL PRODUCTS TRADE

Belarus 1 759 Azerbaijan 1 221 India 6 752

Import

Import

Others

Human blood; immune serum

1 589

223

Germany

Moldova

1 151

204

Russia

Poland

1 120

236

Kazakhstan

Georgia

2 216

601

Others

Others

Other pharmaceutical products

Import

2 365

Cotton, gauze, bandage and analogues

49 843

11 762

7 303

USA

Germany

China

38 867

8 590

Germany

Hungary

182 772

17 107

7 395

Others

Others

Others

Source: SSC of Ukraine

Export

Other pharmaceutical products

Export

Human blood; immune serum

Export

Main state-partners in 2017, ths US dollars

Cotton, gauze, bandage and analogues

43


SOURCES • Stock market infrastructure development agency of Ukraine (SMIDA)

• Evaluate Group

• State Service of Ukraine on Medicines and Drugs Control (SMDC)

• Food and Drug Administration

• State Statistics Service of Ukraine (SSC of Ukraine)

• Fortune

• State Fiscal Service of Ukraine (SFS of Ukraine)

• International Federation of Pharmaceutical Manufacturers & Associations

• Apteka Weekly: 1. Apteka Weekly № 3 (824) 23 January 2012 2. Apteka Weekly № 4 (875) 28 January 2013 3. Apteka Weekly № 10 (881) 11 January 2013 4. Apteka Weekly № 5 (926) 3 February 2014 5. Apteka Weekly № 11 (932) 17 March 2014 6. Apteka Weekly № 3 (974) 26 January 2015 7. Apteka Weekly № 9 (980) 9 March 2015 8. Apteka Weekly № 2 (1023) 25 January 2016 9. Apteka Weekly № 13 (1034) 11 April 2016 10. Apteka Weekly № 2 (1073) 23 January 2017 11. Apteka Weekly № 7 (1078) 27 February 2017 12. Apteka Weekly № 3 (1124) 22 January 2018 13. Apteka Weekly № 5 (1126) 5 February 2018 14. Apteka Weekly № 10 (1131) 12 March 2018 15. Apteka Weekly № 12 (1133) 26 March 2018

• International Trade Administration

• Farmak • Darnitsa pharmaceutical factory • Aequo • ClinicalTrials.gov • European Federation of Pharmaceutical Industries and Associations

• Lichtenberg, F: Pharmaceutical innovation and longevity growth in 30 developing OECD and high–income countries, 2000–2009 • Organisation for Economic Cooperation and Development • PharmaBoardroom • Pharmaphorum • United Nations Comtrade Database


CREATED BY

ANALYTICAL PARTNER

TOP LEAD marina.budnik@toplead.com.ua toplead.com.ua

BUSINESSVIEWS info@businessviews.com.ua businessviews.com.ua

DISCLAIMER This report aims solely to inform users. We make every effort to ensure that the information provided in the directory is accurate and up-to-date. Despite attention to factual accuracy, this is not a definitive legal document and should not be the sole basis of professional decisions. Featured data collected and prepared for publication in 2018.

The Ukrainian Chamber of Commerce and Industry 33, Velyka Zhytomyrska St. Kyiv 01601 Ukraine

Pharmaceutical Firm Darnitsa 3, Boryspilska St., Kyiv 02093 Ukraine

AEQUO Vector Business Centre, 6th floor 52 Bohdana Khmelnytskogo St. Kyiv 01030 Ukraine

ucci@ucci.org.ua

info@darnitsa.ua

lysenko@aequo.ua.

www.ucci.org.ua

www.darnitsa.ua

aequo.ua

All exceptional property and non-property rights for this atlas pertain to LLC "TOP LEAD". Non-compliance with rules of use of this guide will entail liabilities arising from the Ukrainian legislation. See details http://businessviews.com.ua/ru/rules-pharmaceutical-industry-of-ukraine-eng/ © Top Lead LLC, All rights reserved


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