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Ukraine Pharmaceutical Market Monthly - Upharmacia - Jun 2017
1. Macroeconomic Environment
Market & Companies News
Regulatory Updates
Healthcare News
UPHARMACIA
Ukrainian Pharmaceutical
Market Monthly
Issued by UPharma Consulting
UPharma Consulting is a professional
consulting company, operating in
the Life Sciences sector. We deliver
best global practices in market
knowledge, people management,
marketing and strategy for Pharma
and Healthcare in the CIS/CEE.
06'17issue
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Upharmacia June 2017
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CONTENTS
/ Macroeconomic Indicators
/ Economy & Pharma Dashboard
Page
/ Economic News
/ Pharma Market News
/ Regulatory Updates
/ Healthcare News
/ CIS Pharma
3
5
5
6
7
8
9
Section Data period
May 2016-May 2017
May 2016-May 2017
June 2017
June 2017
June 2017
June 2017
June 2017
Disclaimer:
These publications have been prepared by the research department of UPharma Consulting (“UPC”). It is
provided to our clients and industry stakeholders for information purposes only, and UPC makes no express or
implied warranties, and expressly disclaims all warranties of merchantability or fitness for a particular purpose
or use with respect to any data included in this publication. UPC will not treat unauthorized recipients of this
report as its clients.
The information contained in this publication has been obtained from sources that UPC’s research group
believes to be reliable, but UPC does not represent or warrant that it is accurate or complete. UPC is not
responsible for, and makes no warranties whatsoever as to, the content of any thirdparty web site accessed via
a hyperlink in this publication and such information is not incorporated by reference.
All rights reserved. No part of this publication may be reproduced in any manner without the prior written
permission of UPC. UPharma Consulting LLC is registered in Ukraine, Kyiv, 04212, 21st M. Tymoshenka str.,
building 7, office 5. Additional information regarding this publication will be furnished upon request.
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ECONOMY & PHARMA
DASHBOARD
ECONOMIC NEWS
—— Free trade agreement between Ukraine and
Canada will come into force since Aug 1, 2017,
Ukraine’s ambassador in Canada stated.
—— Japan’s government started working on cancelling
visas for Ukrainians, MP Leonid Yemets stated.
—— The Ukrainian Institute for the Future prepared
21 proposals for the government for priority
action plan for industrial development in
Ukraine. The proposals were related to six key
industries: mining, metallurgical, chemical and
petrochemical, food industry, electric power
engineering and machine building. The plan is
aimed to attract USD 2.3 bn of investments and
create additional USD 4.3 bn of GDP.
—— The EU Committee approved the extension of the
ban on EU investment and business in Crimea.
Sanction against Russia were extended till 2018.
—— Social Policy Minister expects the average wages
in Ukraine to rise by 38% to UAH 7,100 by the end
of 2017.
—— TIU Canada launched the construction of
10 MW solar power plant in the territory
of Nikopol Ferroalloy Plant. This is the first
Canadian investment in Ukraine within the
Agreement on free-trade zone between the
countries.
—— The World Bank has improved its Jan 2017
forecast for the growth of Ukraine's GDP in
2018 to 3.5% from 3%, while the forecast for
2019 has been revised upwards to 4% from 3%.
—— According to the social poll of Rating group,
60% of Ukrainians say that over the past
year their financial situation worsened. 97%
stated that they feel the increase in prices for
consumer goods and services this year.
—— Japan-owned company Fujikura Automotive
Ukraine Lviv LLC plans to open two more plants
in Ukraine (in Vinnitsa and Cherkasy) for 1,500
new jobs each.
177.6 174.8 175.4
180.9
190.4
212.2
224.7
264.9
233.2
225.4
187.0
210.5
217.5
123.6
122.6 122.7
126.2
135.5
138.6 139.9
164.1
148.8 147.6
121.9
133.9
137.3
100
120
140
160
180
80
120
160
200
240
280
May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May
Pharmaceutical Market Retail Sales
mio USD
mio units
2016 2017
14.2
16.1
13.4 13.6
18.8 18.4
14.8
23.9
8.1
13.3
22.0
12.2
14.2
110.4
132.1 133.1 137.3 140.6 137.4
142.6
169.1
102.4
123.4
150.6
116.8
145.7
0
30
60
90
120
150
180
0
5
10
15
20
25
30
May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May
Ukraine's International Trade
in Pharma Production
Export
Import
2016mio USD 2017
5.39 5.44 5.61 5.57 5.62
6.39
6.91
7.64
6.34 6.44
6.91
5.92
6.25
1.59
1.73
1.87 1.92
1.76
1.87
2.04 2.09
1.40 1.37
1.62 1.66
1.93
0.0
0.5
1.0
1.5
2.0
2.5
3.0
0
1
2
3
4
5
6
7
8
May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May
Industrial Production Sales &
Retail Turnover of Enterprises Surplus
2016bn USD 2017
25.2 25.0 24.8 25.1 26.3 25.8 25.7 26.2 27.2 27.0 27.0 26.9 26.4
28.5 28.1 27.5 28.1 29.5 28.5 27.8 27.6 28.8 28.8 28.8 28.8 29.2
107.5 106.9 107.9 108.4 107.9
112.4 112.1 112.4 112.6 114.2 115.1 112.2 113.5
0
20
40
60
80
100
120
140
160
0
10
20
30
40
50
May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May
UAH/USD
UAH/EUR
CPI
2016
Official Currency Exchange Rates
vs. Consumer Price Index
2017
6. 6
Upharmacia June 2017
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PHARMA MARKET NEWS
Filya Zhebrivska
Retires as CEO of
Farmak
On Jun 30, 2017, Filya Zhebrivska
left the position of the CEO of
Farmak to become the Head
of the Supervisory Board of
the company. The Board also
included four other former
top-managers of the company.
The Supervisory Board will
conduct strategic planning of
Farmak’s development.
According of Mrs. Zhebrivska
the main goal for the future
is the expansion of external
markets with main focus on the
European market. Polish trade
and marketing company, which
was acquired by Farmak last
year, is to play important role to
achieve this goal.
The new CEO of Ukraine’s
leading pharmaceutical
company has become Augustin
Dubnicka, former site director
at Slovakian Zentiva (a Sanofi
company). In next 2.5 years, Mr.
Dubnicka will have to increase
the company’s share on local
market from 6.5% to 7.5% and
to enhance the share of export
to 40%.
Filya Zhebrivska held the
position of Farmak’s CEO since
1995. She owns the controlling
stack in company through the
Dutch company FARMAK GROUP
N.V.
Medicine Producers
of Ukraine joined
Medicines for
Europe
Association Medicine Producers
of Ukraine (AMPU) joined
association Medicines for
Europe, which unites the
producers of generic drugs.
The member of Medicines for
Europe support and develop
joint Scientific and technical
interests of the pharmaceutical
industry, national or European
associations and generic
producers. The association also
promotes the development
of relations between the EU
and third countries in the
pharmaceutical sphere.
The Membership in Medicines
for Europe allows developing
contacts with the European
partners in generic sphere
and liaising with professional
organizations dealing with
healthcare issues.
“We hope the cooperation
with European partners at the
new level will contribute to
strengthening the potential of
drug manufacturers in Ukraine
and accelerate integration into
the European Community”, the
representative of the AMPU
stated.
The AMPU includes such
Ukrainian companies as Farmak,
BCPP, Interchem, Yuria-Pharm,
Kusum Pharm, Indar, Sperco
Ukraine.
Yuria-Pharm
Launched
Production of
Injection Needles
Ukrainian company Yuria-Pharm
has launched production
of injection needles at its
production site in Cherkassy.
The company will use certified
raw materials from Europe.
The planned production
volumes and investments were
undisclosed. Herewith, the
company plans to export the
needles after launching them
onto Ukrainian market.
There are about 10 local
producers of needles and
syringes. However, Yuria-Pharm
is the only producer of spinal
needles in Ukraine.
Yuria-Pharm covers 60% of
needs in infusion solutions in
public procurements. In 2016, it
has become #2 company on the
Ukrainian hospital drug market
with 7.21% share.
104 Indian
Production Sites
Proved GMP
Compliance in Ukraine
As on Jun 2017, 104
pharmaceutical production
sites form India have proven
their compliance with the
GMP standards in Ukraine,
the Indian Pharmaceutical
Manufacturers Association
(IPMA) reported. 32 certificates
were granted by Ukrainian
State Drug Service after the
7. 7
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REGULATORY UPDATES
The National List of Essential
Medicines Enactment Will Be
Postponed Until Sep 1, 2017
On June 29, 2017 the draft
resolution of Cabinet of
Ministers of Ukraine, which
proposes to amend the Cabinet
of Ministers Resolution of
25.03.2009. #333 "Certain
issues of state regulation
of prices for medicines and
medical products” was posted
on the website of the Ministry
of Health of Ukraine for public
discussion. The document
proposes to postpone the date
from which health institutions
funded from state and local
budgets should begin to carry
out government purchases of
medicines registered in Ukraine
and included in the National
List of Essential Medicines until
September 1, 2017.
In addition, the draft decree of
Cabinet of Ministers of Ukraine
provides for postponing the
enactment of the provision on
the obligation of customers
to pre-satisfy in full the
requirements for medicines
registered in Ukraine and
included in the National List
of Essential Medicines until
January 1, 2018.
In this regard, let us remind you
that according to decree of the
Cabinet of Ministers of March
16, 2017, No. 180, the Cabinet
of Ministers decree No. 1071 of
05.09.1996, which approved the
list of medicines of domestic
and foreign production that can
be purchased by agencies and
health care institutions, fully or
partially funded from the state
and local budgets, expires on
July 1, 2017.
Changes to Determination of
Insulin Cost Reimbursement
Amount
On June 24, 2017, the
amendments made to the
terms of insulin preparations
cost reimbursement approved
by the Cabinet of Ministers of
05.03.2014 No. 73 and 23.03.2016
No. 239 entered into force.
In particular, we are talking
about the official publication
of Resolution of Cabinet of
Ministers No. 439 of June 21,
2017.
First of all, the approach to
determining the amount
of insulin preparations
reimbursement at the expense
of the local budget has been
changed. So, henceforth, the
compensation amount for the
cost of drugs may differ from
the reference price set by the
Ministry of Health. The only
condition is the established
upper limit: the amount of such
compensation can not exceed
the reference price.
Also, after making
amendments, special conditions
for reimbursement have
been established for certain
categories of patients, namely:
• adults who are diagnosed
with diabetes at the age of
18 and who are prescribed a
human insulin preparation
in a vial and, if they wish, are
ready to fund the cost of the
human insulin drug in the
Provided by
field audits. 9 applications form
Indian producers are now under
consideration by the Service.
In 2016, the market-share of
foreign drug producers in
values in Ukraine decreased
from 59.2% in 2015 to 57.4%.
In volumes, the market share
improved from 23.2% to 23.7%.
8. 8
Upharmacia June 2017
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HEALTHCARE NEWS
system will become compulsory
for the use by physicians
and patients. The MoH
plans to register all medical
organizations in Ukraine by that
time. After that, the system will
be registering all physicians and
patients.
The costs of eHealth system
development amounted USD
400 ths. The funds were
provided by USAID and the
embassy of Canada.
About 2 mio Prescriptions
Issued within Reimbursement
Program
After 3 months since the
launch of “Affordable drugs”
reimbursement program,
about 2 mio prescriptions
for preferential drugs were
issued. The average check value
amounted UAH 32. About 6
ths pharmacies had joined the
program and received UAH 67
mio from the state refunded.
According to the poll held
by Pharmacy professional
association of Ukraine (PPAU),
15% of pharmacies have seen
the increase in their revenues
concerned with participation
in the program. While 31%
of responders reported the
decrease in their revenues.
54% of pharmacies noted that
participation in the program
has not change their revenues.
Moreover, 71.2% of responders
said they are not provided with
the full volume of medicines,
which are subject to the
reimbursement. The main
reason for this is the absence
of such medicines from
producers and distributors.
80% of pharmacies from the
poll reported that the refunds
from the state are carried out
of time.
The reimbursement list includes
157 brand names of medicines
against cardiovascular diseases,
bronchial asthma and diabetes.
The MOH plans to update the
list by the end of July.
Public Procurements of
Drugs through International
eHealth System was Launched
in Ukraine
On 19/06/2017, the National
electronic system eHealth
was launched. It is aimed to
the collection of data about
hospitals, physicians and
patients as well as track the
services provided at the
expense of the state. eHealts
system should become the
necessary basis within the
reformation of the Ukrainian
healthcare system, as it will
allow to identify how much
money the state pays to the
hospital for services it provided.
The system will allow the
patient to make an appointment
with doctor online, to receive
an electronic prescription, to
check out what the doctor has
prescribed, have access to an
e-card, have an opportunity to
get a referral to a specialist.
Since Oct 1, 2017, the drug
reimbursement projects will
operate through eHealth
system.
Since Apr 1, 2018, eHealth
cartridge with a syringe-pen;
• Adults who are prescribed
a human insulin preparation
who do not have contrain-
dications to treatment with
insulin analogues and who
are willing to fund the cost of
the preparation which is an
insulin analog.
9. 9
Upharmacia June 2017
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—— The government of St. Petersburg and
BIOCAD company signed the agreement on
the realization of investment projects on
production biological substances. The project
is aimed to attract investments in the amount
of more than RUB 3 bn.
—— Indian pharmaceutical concern Cadila will
invest USD 50 mio in the manufacturing
located in the Moscow region.
—— In May the number of pharmacies in
Russia reached 61 ths. Thus, the number of
pharmacies increased 6% vs May 2015.
—— Pharmaceutical Plant of St. Petersburg is
looking for acquirer or investor to continue
launching new products onto the market.
CIS REGION PHARMA
NEWS
Belarus
—— Borisov Medicines Plant
(Borimed) is looking for investor
to establish the production of substances
in Belarus. Currently, the company is
implementing large-scale reconstruction of
ampoule production to launch three GMP
production sites by the year-end.
Russia
—— Russian Group of
companies R-Pharm transferred
the rights for its innovative molecule (an-
tibody-biosimilar of cetuximab) to the US
company Aspyrian. The molecule is now in the
II phase of clinical trials.
—— Novosibirsk biotech park opened the
biggest in the Asian part of Russia center
for certification of drugs, food supplements
and cosmetics. The center expects to start
self-financing since 2018.
—— The government of Kaliningrad region, South
Korean company NEPES and Russian company
Infamed K signed the Memorandum on
intention to establish the manufacturing of
urological catheters in the region.
Organizations can be Canceled
Parliamentary Committee on
Public Health approved the
Draft Law to cancel public
procurements of drugs through
international organizations.
In 2015, Ukrainian government
started cooperation with
international organizations
(UNDR, UNICEF and Crown
Agents) within the delegated
public procurement of drugs
and medical devices. The
cooperation allowed saving
considerable funds and
counteracting corruption
mechanisms. However, a
lot of experts complained
at the inefficiency of such
procurements due to delayed
supplies and short expiration
dates.
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