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Ukraine Pharmaceutical Market Monthly - Upharmacia - May 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.
05'17issue
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Upharmacia May 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
10
Section Data period
Apr 2016-Apr 2017
Apr 2016-Apr 2017
May 2017
May 2017
May 2017
May 2017
May 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.
4. We recruit pharma people in the
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ECONOMY & PHARMA
DASHBOARD
ECONOMIC NEWS
—— On May, 17, Ukraine and the EU signed final
agreement to grant Ukraine a visa-free regime in
Schengen area. Ukrainians will be able to freely
travel the EU since Jun 11.
—— In 1Q2017, Ukraine’s imports of goods increased
27.3% PPG, exports of goods – 34.4% PPG. Trade
deficit amounted USD 736 mio vs USD 1 bn in
1Q2016. Largest increases were in exports of
minerals (89% PPG) and metals (42% PPG), as
well as in imports of the black energy (65% PPG)
and vehicles (60% PPG).
—— The Head of the National Bank of Ukraine
Valeriya Gontareva announces her resignation
and appointed her Deputy Yakiv Smoliy as acting
Head of the central bank. President of Ukraine
plans to submit the new Head nomination in
Sep 2017.
—— The PMs of Ukraine and Israel met to discuss
the establishment of the FTA between the
countries. The corresponding agreement is
expected to be signed by the year’s end.
—— President of Ukraine reported that the
government approved the draft program for
attracting low cost airlines to Ukraine.
—— In Apr, Ukrainian industry slowed the
production by 6.1% y-o-y. Mining and
metals decreased by 12.3% and 10.7% y-o-y,
respectively. Biggest declines were in Luhansk
(-46% y-o-y) and Donetsk (23.6%) regions.
178.1 177.6 174.8 175.4
180.9
190.4
212.2
224.7
264.9
233.2
225.4
187.0
211
125.2
123.6 122.6 122.7
126.2
135.5
138.6 139.9
164.1
148.8 147.6
121.9
133.9
100
120
140
160
180
80
120
160
200
240
280
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr
Pharmaceutical Market Retail Sales
mio USD
mio units
2016 2017
13.9 14.2
16.1
13.4 13.6
18.8 18.4
14.8
23.9
8.1
13.3
22.0
12.2
130.0
110.4
132.1 133.1 137.3 140.6 137.4
142.6
169.1
102.4
123.4
150.6
116.77
0
30
60
90
120
150
180
0
5
10
15
20
25
30
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr
Ukraine's International Trade
in Pharma Production
Export
Import
2016mio USD 2017
5.17
5.39 5.44 5.61 5.57 5.62
6.39
6.91
7.64
6.34 6.44
6.91
5.92
1.76
1.59
1.73
1.87 1.92
1.76
1.87
2.04 2.09
1.40
1.37
1.62 1.66
0.0
0.5
1.0
1.5
2.0
2.5
3.0
0
1
2
3
4
5
6
7
8
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr
Industrial Production Sales &
Retail Turnover of Enterprises Surplus
2016bn USD 2017
25.6 25.2 25.0 24.8 25.1 26.3 25.8 25.7 26.2 27.2 27.0 27.0 26.9
29.1 28.5 28.1 27.5 28.1
29.5
28.5 27.8 27.6 28.8 28.8 28.8 28.8
109.8 107.5 106.9 107.9 108.4 107.9
112.4 112.1 112.4 112.6 114.2 115.1 112.2
0
20
40
60
80
100
120
140
160
0
10
20
30
40
50
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr
UAH/USD
UAH/EUR
CPI
2016
Official Currency Exchange Rates
vs. Consumer Price Index
2017
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PHARMA MARKET NEWS
Gedeon Richter
Ukraine Changed
Organization
Type and
Replaced the Management
On May 5, Gedeon Richter
Ukraine changed the type
of organization from Public
JSC to Private JSC. Moreover,
the Supervisory Board of the
company decided to re-elect
the management board of the
company. Thus, Natalia Sereda
replaced Lazslo Kovach at the
position of the Head of the
Board.
In 2016, the sales of Gedeon
Richter in Ukraine increased
11.3% y-o-y to EUR 29.6 mio after
in 2015, the sales almost halved
from EUR 55 mio in 2014. In 2016,
the company lost 4 positions
in the list of best-selling
companies of the Ukrainian
retail drug market and held
14th position.
Arterium
May Increase
Investment in
Development
Arterium Corporation
may increase investment
in development of new
preparations by 50-80% in
2017. In 2016, Arterium invested
UAH 106 mio in development.
Currently, the Corporation
has 80 preparations in
development. The key directions
of development are cardiology,
neurology, gastroenterol-
ogy and antibacterial agents.
Moreover, Arterium plans to
expand the OTC business.
Arterium is implementing the
strategy for accessing the
EU market. The company has
registered medicines in Serbia
and plans to access Slovenia.
In 2016, Arterium Corporation
held second place at the
Ukrainian retail drug market
climbing two positions as
compared to 2015.
Biofarma
Disputes the
UNDR Tender
Ukrainian producer of blood
preparations Biofarma seeks
the UNDR to revise the tender
on the procurement of blood
factor XVIII, which was won
by Italian company Kedrion.
The President of Biofarma
Kostiantyn Yefymenko stated
that the Kedrion’s bid was
30% more expensive than the
proposition of Biofarma.
“The MOH has all means to
stop the tender and look into
situation,” Mr. Yefymenko said.
“We are ready figure this out at
any level.”
The company appealed to the
UNDP for it to cancel the non-
transparent decisions. It also
requested the MOH of Ukraine
to hold a joint meeting with
representatives of the UNDP
to review the results of the
tender and to take measures to
prevent similar situations in the
future.
Assets of KVF
Increased 71%
In 2016, the net income of Kyiv
Vitamin Factory (KVF) increased
35% y-o-y to UAH 1.43 bn. The
net profit of the company
downed to UAH 145 mio form
UAH 173 mio in 2015. The
value of the company’s assets
increased 71% y-o-y to UAH 1.09
bn.
KVF is among the most
dynamically developing
companies on Ukrainian
pharmaceutical market. In 2016,
it was the 9th company on the
retail drug market improving
the position from 11th place in
2015 and 14th in 2014.
IPMA Signed
Memorandum
on Cooperation
with Indian
Pharmexcil
Indian Pharmaceutical
Manufacturer’s Association
(IPMA) of Ukraine signed
Memorandum on cooperation
with the Pharmaceuticals
Export Promotion Council of
India (Pharmexcil).
“Our organizations will
exchange information and
organize joint events to
promote the establishment of
business relations between
Ukraine and India,” the Head
of the IPMA said. “After
signing the Memorandum,
the Indian company will be
able to use organizational
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and hygiene products. The
company’s portfolio includes 13
products.
Biofarma Enters
Indian Market
Biofarma
registered two preparations of
donor blood plasma in India.
According to the Exports
Director of the company,
Biofarma received the first
order on the shipment to India
of 60 ths bottles of Albumin and
20 ths bottles of Bioven Mono.
The company exports its
products to CIS countries as
well as to Mongolia, Yemen,
Republic of Korea, Egypt, Mexico
and Australia. Biofarma exports
about 32.5% of its products. The
company plans to open the new
plant for blood fractionation to
process up to 320 tons of blood
plasma per year.
exporting its food supplement
Sitoprostat® for maintaining
healthy urogenital system in
men. The preparation was
developed and produced
by Novalik-Pharm. The main
component of the food
supplement (beta-Sitosterol)
prevents the development of
prostate adenoma. Austria is
the first non-CIS market to be
entered by the company. The
supply contract was signed with
local company OKOPHARM.
“Considering that Austria has
its own culture of consuming
food supplement, while the
legislation strictly controls their
quality and safety, we consider
the export to this country as
the recognition of the high
quality of our product,” the
Head of Novalik-Pharm stated.
Novalik-Pharm was founded
in 2013. It produces medicines,
food supplements, cosmetic
and informational capabilities
of the IPMA to prepare for
entering the Ukrainian market
through obtaining from the
IPMA objective information
about market opportunities,
regulatory features and other
data.”
Pharmexcil is coordinated by
representatives of the biggest
pharmaceutical companies in
India – Dr. Reddy's Laboratories,
Sun Pharma, Ranbaxy,
Aurobindo Pharma, etc.
Moreover, officials of the Indian
government also included in the
administrative committee.
Novalik-Pharm
Exports
its Food
Supplement to Austria
Ukrainian company
Novalik-Pharm started
REGULATORY UPDATES
Ministry of Health Has
Offered Full Use of Old
Prescriptions
On May 23th, 2017 the Ministry
of Health of Ukraine published
draft “On Amendments to
Order of the Ministry of Health
of Ukraine No. 360 as of July
19th, 2005” for public discussion.
The draft provides for use
of prescription form number
1 (FA-1) of old pattern until
its exhaustion. Forms
number 1 are provided to
patients in pharmacies to
receive medicines under
reimbursement program.
Let us remind you that the
Ministry of Health of Ukraine
has recently made changes to
the Regulations on Prescribing
Medicinal Products and Medical
Devices, the Procedure for
Sale of Medicinal Products and
Medical Devices in Pharmacies
and their Units and the Rules on
Storage, Recording and Disposal
of Prescription Forms approved
by the mentioned order of the
Ministry of Health No. 360.
Based on current regulations
the Ministry of Health of
Ukraine allowed parallel use
of forms No. 1 of old and new
pattern by July 1st, 2017. If old
forms are used, the prescription
should contain the following
information:
—— corner stamp of healthcare
institution;
Provided by
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HEALTHCARE NEWS
problem points. Mr. Groysman
also announced the expansion
of the List of drugs, which fall
under reimbursement. The
range of diseases also could be
expanded.
The program “Affordable drugs”
was launched on Apr 1, 2017.
The initial budget amounted
UAH 500 mio. At the beginning
of May, Vice Prime Minister of
Ukraine reported that above
3 ths pharmacies in Ukraine
joined the program.
The EU Supports Medical
Reform in Ukraine
The Head of EU Delegation
to Ukraine Hugues Mingarelli
stated that the European Union
supports the reforms proposed
by acting Head of the MOH
Ulana Suprun.
“We consider the current health
system as collapsed in Ukraine
and it is absolutely necessary to
carry out the reform proposed
by Minister Suprun and again
for the sake of the poorest
Ukrainians, the most vulnerable,
not for those who can go to a
private clinic,” Mr. Mingarelli
said.
Moreover, the Head of
Parliamentary Committee on
Public Health also expressed
the support to the reform and
ensured that the Committee
would not block the Draft Laws
proposed by the government.
After 10 months in the MOH
the new management team
headed by Ulana Suprun, has
introduced reference pricing
and reimbursement of certain
categories of medicines as well
as implemented international
clinical protocols. In Apr, the
Parliament approved the
Draft Law on healthcare
establishments’ autonomisation.
The Funding of Reimbursement
Program will be Increased
At the government meeting,
the PM of Ukraine Volodymyr
Groysman stated that in near
future the State Budget would
be amended to increase the
funding of reimbursement
program “Affordable drugs” by
UAH 250 mio.
“The program is working
over a month. We have both
positive achievements and
predictable problems,” Mr.
Groysan said. “The citizens
of some cities report on
incomplete assortment and
shortage of drugs included in
the reimbursement list. Some
cities have insufficient number
of pharmacies. The government
will analyze this information.”
The PM instructed the acting
Head of the MoH and Vice Prime
Minister to analyze the results
of the program and systematize
—— be signed and sealed by a
doctor;
—— for drugs, cost of which is
subject to reimbursement,
prescription should be
additionally certified by an
official seal of a healthcare
institution and red stamp
“subject to reimbursement”.
In turn, a pharmacist
when realizing a medicinal
product which is subject to
reimbursement, affixes on the
prescription written on an old
form red stamp “released for
free” or “released at a discount”.
The prescription remains in
the pharmacy for reporting of
released medicinal products
which are subject to full or
partial reimbursement.
We can assume that in case
the draft on the old forms
is adopted, similar rules for
prescribing and realizing drugs
should be followed.
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The next important step
within the reformation of
Ukrainian healthcare system
should become the approval
of Draft Laws on state financial
guarantees on provision of
medical services. The MOH
expects these documents to be
approved as soon as possible.
The Head of OHMADYT
Hospital was Elected
On May 31, the MoH held
the second competition on
vacant position of the Head
physician of the National
Children’s Specialized Hospital
OHMADYT. The commission
announced the win of the
Head of Kolomyia Regional
Hospital Iryna Sadovyak.
During her presentation, Mrs.
Sadovyak stated that she plans
to change the organizational
structure of OHMADYT and
make it a communal non-profit
enterprise.
OHMADYT is the biggest
children’s hospital in Ukraine.
About 18 ths children are
treated in the hospital annually.
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antihepatitic component.
—— AstraZeneca and Skolkovo Foundation
agreed on strategic partnership in R&D and
education activity. Currently, AstraZeneca
studies the developments of resident
companies of Skolkovo in oncology field,
aiming to find possibilities for cooperation.
—— National pharma distributor SIA Group
acquired 30% share in Bentus Laboratory,
largest Russian producer of household
antiseptics under Sanitelle brand.
—— Nearmedic Group, which includes the clinics
chain and pharmaceutical company, started
searching for a strategical investor. For sale
are only production units of the company
that are engaged in the production of drugs,
diagnostic tests and laboratory equipment.
The company plans to attract about USD 100
mio.
—— Group of companies Marathon Pharma (part
of Marathon Group) acquired the control
package of biopharmaceutical company Fort,
the producer of influenza vaccine Ultrix.
—— National Immunobiological Company
(NacImBio) will build new plant for the
production vaccines in Ufa. The budget will
amount RUB 6 bn.
Uzbekistan
—— President of Uzbekistan
signed the Order on creation of
7 free economic zones, specializing in the
production of pharmaceutical products.
The zones will be opened in Karakalpakstan
(Nukus-pharm), Jizzakh region (Zomin-pharm),
Namangan region (Kosonsoy-pharm), Sirdaryo
region (Sirdaryo-pharm), Surxondaryo Region
(Boysun-pharm) and Tashkent region (Buston-
lik-pharm and Parkent-pharm).
CIS REGION PHARMA
NEWS
EEU
—— On May 6, the single drug
market was launched within
the Eurasian Economic Union. The national
markets of five member-states (Russia,
Kazakhstan, Belarus, Armenia and Kyrgyzstan)
started operating in a single space format.
Now the development, pre-clinical and clinical
trials, quality control, registration, production
and distribution of medicines will be carried
out under the single norms of the EEU.
However, to make it easier for companies to
adapt to new demands, transitional periods
are envisaged.
Kazakhstan
—— The Head of AIMP
Kazakhstan stated that after
the launch of single drug market within the
Eurasian Economic Union, local drugs may
drop in price 10-15%.
—— On 23/05/2017, the Heads of leading
pharmaceutical associations in Kazakhstan
signed Memorandum of restraining growth
of prices on drugs and medical devices. The
document fixated prices of 105 products.
Russia
—— In the next 7 years, BIOCAD
company will invest EUR 25 mio in
the construction of the plant in Turku science
park (Finland). This will become the first step
to enter the EU market.
—— National Immunobiological Company
(NacImBio) signed the contract on cooperation
with Binnopharm company. The companies
plan to establish joint manufacturing of a
multicomponent vaccine with the use of an
11. 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 in
the CIS/CEE.
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