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
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