The Ukrainian pharmaceutical market grew by 13% in 2020, increased exports by 7% to ₴41 bln

Monday, May 3, 2021
The Ukrainian pharmaceutical market grew by 13% in 2020, increased exports by 7% to ₴41 bln

Thanks to the participation of the State, 2020 has made more profit than the total in the last 5 years

The President of the association “Manufacturers of medicines of Ukraine” (MMU) Peter Bahriy informed about this during a press conference at the agency "Interfax-Ukraine" on April 27. According to Bahriy, the market share of domestic producers increased and prices fell significantly.

In purchasing prices without VAT as of the end of 2020, the drug market volume amounted to $2.2 billion, has said general director on analytical company SMD  Irina Gorlova.

"The largest share of procurement was from the state (28%). The state market shows an increase of 92%, with almost $600 million. Among the State segments, the most successful and interesting is the work of the purchasing agency "Medical Purchases of Ukraine" (MPU), which, at the end of the year, took up 8% of the share of procurement and partial delivery of all medicinal preparations. The Ministry of health and social welfare held a tender for a total of $330 million, of which $170 million is for the purchase of medicines”, Gorlova has shared.

The CEO of SMD also noted that medical institutions had increased their purchases and the retail had almost stagnated. Thanks to the fact that "companies were in charge of the request", 93% of the new drugs entered the market precisely in the state segment.

A positive growth trend is a forecast for 2021, in particular in the budget sector. The retail is likely to remain inactive.

"In the next five years, the Rx-segment is likely to occupy a fairly large share (77-79%). The share of the local producer will increase to 36-38%. Of course, we cannot rule out a pessimistic scenario involving a further recession and lockdown”, said Irina Gorlova.

"We see some shifts in regulation. Among the development prospects are the importance of improving the regulatory system (GMP-certification), simplifying the registration of medicines, which can positively influence the market entry of international manufacturers, as well as the expansion of the list of international nonproprietary names”, — has said the Chamber of American" rel="dofollow">Commerce’s Strategic Development Manager (health and medical service providers) in Ukraine Natalia Kravchenko. She also drew attention to the growth of electronic trade in medicines.

Experts agreed on the need to launch production in Ukraine of vaccines, in particular from COVID-19.

"The Ukrainian pharma deals with this issue, and we are convinced that the existence of a domestic producer is a matter of national security, including the production of a vaccine. The simplest way is a transfer of technologies of known companies and localization of production in Ukraine. "Pharmacist", "Lekhim" and other companies are negotiating, and I hope that there will be results by the end of the year. Negotiations are also underway for other product groups", said Peter Bahriy.

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