Ukraine. Overview of Ukrainian pharmaceutical market (SMD)

Overview of Ukrainian pharmaceutical market, presented by Ms. Gorlova Irina, CEO SMD. February 12, 2014 at Adam Smith Conferences The 5th CIS Pharmaceutical Forum.

Ukraine remains the 2nd largest market in the CIS, shows positive growth in values and still slow down in units. 

Per capita spending in values (USD) and units in CIS, FY2013 results. Per capita consumption in units is much higher in countries, where there are prototypes of reimbursement system and government participate in compensation of treatment for population (Kazakhstan, Belarus)

Ukrainian pharma market is passing through market redistribution due to obligatory GMP certification. Current Market Trends:

• Market is driven by out-of-pocket spending
• Obligatory GMP certification = market has been cleared from products and companies, that do not meet the requirements
• Obligatory GMP certification = concentration of sales among leading companies and products in therapeutical niches
• Growth in segment of food supplements, switch of products from OTC to FS
• Effect of reimbursement pilot project “products against hypertension” = growth in cardiology segment

Ukraine being the 2nd biggest market in CIS, remains mainly out-of-pocket.

Top 20 corporations in retail segment – local companies improved position considerably. 

Main trends among corporations in retail segment:

• Many companies lost position and some of them almost left the market due to GMP certification (Genom, Grindex, Belbiopharm, Mili, Apotex); small Indian, Russian, Pakistani companies left the market.
• Some companies used opportunities and substitute vacant niches (Kiev Vitamin factory, Abbott, Bayer Consumer, Novartis Consumer, Astellas, Kuzum).
• Local manufacturers lost sales in antibiotic segment, ophthalmology and antivirals.
• Some foreign lost sales in cough & cold, especially combined ones, musculoskeletal antiinflammatory agents and antibiotics.

Market results of a/hypertensive pilot project – growth in SU (Standard units) +34% vs retail market decrease (-0,2%).

• 7 molecules participate in project since May 2012; + 3 combinations were added since June 2013
• In Y2013 state budget allocated 39 MM USD, less than half was used
• The highest growth in SU was demonstrated by Lisinopril (+84%), Amlodipin (+64%) Nebivolol (+65%), Bisosprolol (+47%)
• The best results were demonstrated by Teva, KRKA, and local companies Farmak, BHFZ, KievVitamin factory and Kusum 

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