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Gunchenko M.V, Dekhtiarenko N.V., Galkin O.Yu.

National Technical University of Ukraine "Kyiv Polytechnic Institute", Ukraine

ANALYSIS OF UKRAINIAN PHARMACEUTICAL MARKET TRENDS

 

Ukrainian market is of little importance in the world. Domestic pharmaceutical market was valued at 2.9 billion of USD in 2010, that is 0.3% from the global. Ukrainian pharmaceutical industry is currently non-competitive globally. This is associated with the prevalence of production of cheap traditional drugs, generics from imported substances and lack of domestic competitive patented brand medicines. Exports are mainly focused on the CIS (Commonwealth of Independent States) (96%). Most imported drugs are from Europe (70-75%), Asia (15-20%). Imports exceed exports in 12-15 times (Fig. 1-2).

 

Fig. 1. Dynamics of pharmaceutical products imports by the world regions

(calculated according to the State Statistics Service of Ukraine data)

 

In value terms, imported drugs sales are higher than domestic in 3 times, on contrary, in real terms, domestic drugs sales is 2-3 times higher than imported. The reason is that the low-cost drugs sales are dominant. Generic drugs accounted for approximately half of the total pharmaceutical market in value terms and nearly 75% in real terms. About 30% of sales are shared by drugs, which cost less than $ 1, and 50 - 55% by drugs, which cost from 1,01 to 2 dollars. In recent years there has been a tendency to increase presence of domestic drugs over imported [1]. Consumption of medicines per capita is presented in Fig. 3.

 

Fig. 2. Dynamics of export of pharmaceutical products by regions of the world (calculated according to the State Statistics Service of Ukraine data)

 

Fig. 3. Average annual consumption of medicines per capita

Despite the growth of the Ukrainian pharmaceutical market, the overall medicines spends per capita in Ukraine are low - 7-15 times less than in developed countries. It shows the great growth potential of the Ukrainian pharmaceutical market. Domestic pharmaceutical companies have the advantage of low prices, but often lose out to foreign companies in the promotion of drugs. Today it is necessary to choose the right strategy and implement it at the national level for the successful development of the pharmaceutical market of Ukraine. There is intense competition for market outlets on global level. The winners here are the companies which implant the latest biotechnological advances in production of new drugs. Ukraine doesn’t have yet relevant technologies and specialists to enter the world market. In such circumstances, the strategic task for Ukraine is substitute import drugs with domestic ones. It is possible to make certain breakthrough in the development of pharmaceutical industry by implementation of the full cycle production of several biogenerics. This investment will improve manufacturing capabilities, train staff and get higher profits (comparatively with the profits from the of traditional medicines production). Properly directed profits in combination with the obtained production base, qualified personnel would make possible to create an innovative drug in 10-15 years. This strategy is possible to realize through the creation of Technology Parks, where small companies can develop new scientific ideas. At this stage it is important to decide how to select the most promising developments and future funding of clinical trials, registration, and entering to the world market.

Successful development of pharmaceutical industry in Ukraine would help to get free from imported drugs dependence and enter the global pharmaceutical market.

References:

1. State Statistics Service of Ukraine - http://www.ukrstat.gov.ua

2. Ministry or Economic Development and Trade of Ukraine  http://ukrexport.gov.ua/

3. IMS Health Market Prognosis http://www.imshealth.com.

4. The Pharmaceutical Industry in Figures // European Federation of Pharmaceutical Industries and Associations. – 2011. - www.efpia.eu.