Pharmacies Addresses in Kyiv...
Marketing research of pharmaceutical markets

The retrospective appraisal of Ukrainian pharmaceutical market shows that the market of patent medicines amounted $ 477 billion in 2002. $ 385 billion (under mark-ups) of the sum fell to the share of retail segment. Medicines in amount of $ 92 billion were consumed in medical institutions.

The shares of import and domestic production in the total volume of the pharmaceutical market amounted 58% and 42% correspondingly. During 2002 together with cyclic seasonal fluctuations there was a gradual decreasing of the market volume to be observed (as a whole the rate of growth amounted to "-25,96%").

At the beginning of 2003 Ukrainian pharmaceutical market continued gradual "slipping down". However, the rate of slump has slowed down. The retail segment of the market decreased in 0,56% for the first 8 months of the year in comparison to the analogous period of 2002. At the same time, during 6 months (April-August) the market volume's increase compared to 2002 was noticed.

Pharmaceutical Market

The marketing group "Business Credit" reports the analysis of the pharmaceutical market of Ukraine during the first half of 2003.

The general sales volume of the medical drugs reduced by 9,4% in the retail sector during the second quarter of 2003 compared to the first quarter of this year. It is at large can be explained by the annual drop in demand for the pharmaceutical goods during the spring and summer periods. However, it grew by 7,3% compared to the second quarter of 2002. Thus the trend of the pharmaceutical market to increase remains.

The seasonal factor can clearly be observed in the chart on the dynamics of the consumption of the medical drugs. The minimal consumption is during summer months and it reaches its zenith during winter. However, this data can be considered incomplete if we do not take into account the population payment capability. During the spring-summer of 2003 the individual's income increase corresponded to the growth of the pharmaceutical market. The next chart fully demonstrates the interdependence between these two indicators.


The balance between the foreign and domestic manufacturers has been stabilized. Foreign companies still account for 60% of the market. Accordingly domestic producers account for 40%.
(pic. 1, 2)
If one digs deeper into the study of the pharmaceutical drug consumption, one can notice how seasonal changes in the sales volumes vary between the foreign and domestic drugs. For example, during the second quarter the growth of the sales of the imported drugs in the R category was reduced 33,6%, while the domestic equivalent dropped by 18,9%. The sales volume of the drugs affecting the perception system grew for the domestic manufacturers by 7,8%, but somewhat reduced for the foreign pharmaceutical producers.
The current economic situation in the country leaves a hope for the gradual growth of the pharmaceutical market.

In the second quarter of 2003, the structure of the medical drugs has also changed. The analysis of the pharmacotherapeutic groups by the ATC classification shows sales drops in the groups A, J, L, N and R. This is primarily due to the seasonal redistribution of the customers' demand.

Pharmaco-therapeutic groups Foreign
Overall Market
A Digestion -6,7% -13,2% -9,3%
B Blood related 4,1% 4,5% 4,3%
C Cardio-Vascular 0,8% 0,7% 0,2%
D Skin related 4,5% -0,7% 1,9%
G Urine and sex hormone 2,7% 4,3% 2,9%
H Hormonal drugs 8,0% 0,3% 5,7%
J Anti-infection drugs -18,6% -13,2% -15,9%
L Immune System -32,7% -31,5% -32,3%
M Bone and muscle system 0,9% -0,1% 0,5%
N Nerve system -5,1% -2,7% -4,1%
P Anti-parasitic -3,2% -11,8% -5,3%
R Lungs and breathing -33,6% -18,9% -29,3%
S Eyes and occular -1,0% 7,8% 2,1%
V Other -9,1% -18,9% -15,0%
The positive growth can be observed in the B, D, G, H, and S groups.

Pic.4 The structure of consumption of the medical drugs produced by domestic and foreign manufacturers in the retail segment of pharmaceutical market by pharmaco-therapeutic ATC groups (I-II quarter of 2003)

Pic.5 The structure of consumption (sales volumes in million of $US) of prescription and prescription free medical drugs produced by domestic and foreign manufacturers.
The change in the drug consumption structure led to the redistribution of the co-relation between the prescription and prescription free drugs(pic. 5). In part, the seasonal reduction of the sales volume happened basically in the area prescription free drugs.

To sum up, the current pharmaceutical market of Ukraine is quite stable. Ups and downs of the market are caused by the seasonal and population income factors. The domestic and foreign market segments are becoming more balanced.