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UpharmaciaUkrainian Pharmaceutical Market Monthly
Macroeconomic Environment |
Market & Companies News |
Regulatory Updates |
Healthcare News |
Issue: 10 2016
Page 2
Ukrainian Pharmaceutical Market Monthly: October 2016
2015 2016
Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
MACROECONOMIC INDICATORS
Q4 Q1 Q2 Q3
GDP (US$ bn) 25.588 17.655 21.053
growth, % y-o-y -17% 0.1% -0.02%
Export of Goods (US$ bn) 3.35 3.23 3.13 3.36 2.04 3.08 2.99 3.10 2.88 2.93 2.92 3.18 3.16
growth, % y-o-y -22% -23% -21% -11% -31% 3% -13% 1% -2% -5% -7% 3% -6%
Import of Goods (US$ bn) 3.24 3.22 3.07 3.12 2.23 2.68 3.35 3.05 2.69 2.87 3.09 3.45 3.48
growth, % y-o-y -30% - 27% -27% -32% -26% -6% 5% 7% 2% 4% 4% -11% 8%
Industrial Production Sales (US$ bn) 5.72 6.29 5.92 6.37 4.93 4.93 5.41 5.17 5.39 5.44 5.61 5.57 5.62
growth, % y-o-y -20% -21% -19% -17% -18% 8% -2% -12% -5% -6% -2% 3% -2%
Retail Turnover of Enterprises (US$ bn) 1.86 2.04 1.80 2.01 1.60 1.50 1.64 1.76 1.59 1.73 1.87 1.92 1.76
growth, % y-o-y -38% -31% -33% -29% -19% 4% 2% 6% -18% -6% -3% 2% -5%
Unemployment Rate (%) 1.5 1.5 1.6 1.9 1.9 1.9 1.7 1.6 1.6 1.5 1.4 1.3 1.3
Average Salary (US$) 199 207 193 223 180 174 187 191 198 214 217 208 204
OFFICIAL CURRENCY EXCHANGE RATE
UAH / USD 21.8 21.8 23.3 23.4 24.3 26.4 26.4 25.6 25.2 25.0 24.8 25.1 26.3
UAH / EUR 24.5 24.6 25.1 25.4 26.3 29.3 29.2 29.1 28.5 28.1 27.5 28.1 29.5
PHARMACEUTI CAL INDUSTRY INDICATORS
Export of Pharma Products (mio USD) 13.79 12.2 11.7 15.77 8.31 13.33 15.54 13.90 14.17 16.15 13.36 13.58 18.8
growth, % y-o-y -47% -37% -52% -28% -30% 11% 16% 3% 9% 5% -4% 51% 37%
Import of Pharma Products (mio USD) 121.1 147.1 141.3 142.1 103.7 145.0 125.1 130.0 110.4 132.1 133.1 137.3 140.6
growth, % y-o-y -31% -28% -24% -42% 15% 27% 21% 25% 31% 15% 25% 47% 15%
Pharma Retail Sales, values (mio USD) 193.2 206.3 196.6 212.3 198.9 176.0 187.3 178.1 177.6 174.8 175.4 180.9 190.4
growth, % y-o-y -28% -26% -20% -18% -17% -1% -5% -1% -8% -2% 2% 2% -1%
Pharma Retail Sales, volumes (mio units) 126.7 130.2 129.0 136.4 133.6 126.8 133.8 125.2 123.6 122.6 122.7 126.2 135.5
growth, % y-o-y -11% -5% -4% -5% 1% -12% -5% 2% -1% 4% 3% 3% 7%
WACP (USD) 1.52 1.58 1.52 1.56 1.49 1.39 1.40 1.42 1.44 1.43 1.43 1.43 1.41
growth, % y-o-y -19% -22% -18% -14% -23% -23% 13% 1% -2% -6% -3% -1% -8%
CPI of Ukraine 151.9 146.4 146.6 143.3 140.3 132.7 120.9 109.8 107.5 106.9 107.9 108.4 107.6
Pharmaceutical Products CPI 145.8 142.1 138.1 134.6 131.9 126.9 113.5 108.4 107.3 108.2 107.4 107.2 107.9
Local Companies share, values (%) 41.4 41.4 41.7 40.9 42.3 42.9 42.7 42.3 42.9 42.8 42.8 41.8 42.6
Local Companies share, volumes (%) 76.5 75.7 75.8 76.7 75.6 76.5 76.5 76.7 77.2 77.4 77.9 68.9 68.4
MACROECONOMIC ENVIRONMENT
Description of the indicators:
MACROECONOMIC INDICATORS
GDP (Gross Domestic Product) is an aggregate measure of production equal to the sum of the
gross values added of all resident, institutional units engaged in production (plus any taxes, and
minus any subsidies, on products not included in the value of their outputs) calculated in current
prices. Converted from UAH to USD in accordance with an average official NBU exchange
rate in the corresponding period. Hereinafter: excluding the temporarily occupied territory of
the Autonomous Republic of Crimea and City of Sevastopol, as well as the part of zone of the
antiterrorist operation. Source: State Statistics Service of Ukraine.
Export of Goods is a sale of goods by Ukrainian subjects of foreign economic activities to foreign
subjects of foreign economic activities (including non-cash payment) with or without exportation
of these goods through the customs border of Ukraine, including the re-export of goods. Initially
calculated in USD. Source: State Statistics Service of Ukraine.
Import of Goods is a purchase (including non-cash payment) of goods by Ukrainian subjects
of foreign economic activities in foreign subjects of economic activities with or without the
importation of these goods into the territory of Ukraine, including the purchase of goods for
domestic consumption by establishments and organizations of Ukraine located abroad. Initially
calculated in USD. Source: State Statistics Service of Ukraine.
Industrial Production Sales is the value of industrial goods, which are actually shipped in the
period, as indicated in documents decorated as the basis for calculating with the buyer (customer),
regardless of income payments for them. Converted from UAH to USD in accordance with an
average official NBU exchange rate in the corresponding period. Source: State Statistics Service
of Ukraine.
Retail Turnover of Enterprises is the value of consumer goods sold via retail trade and
restaurants to the population by all operating enterprises. It also includes direct retail sales by
industrial, transport and other non-trade enterprises. In addition, retail turnover includes retail
sales of food products to departments, organizations and enterprises to provide meals to the
people they serve (at sanatoria, children’s care institutions, hospitals, etc.). Reflected in current
prices. Converted from UAH to USD in accordance with an average official NBU exchange rate in
the corresponding period. Source: State Statistics Service of Ukraine.
Unemployment Rate is a ratio (percent) of the unemployed registered at the State Employment
Service to the average annual population of working age. Source: State Statistics Service of
Ukraine.
Average Salary is an average value of remuneration in cash and in kind paid to employees for
time worked or work done. Converted from UAH to USD in accordance with an average official
NBU exchange rate in the corresponding period. Source: State Statistics Service of Ukraine.
Official Currency Exchange Rate is the rate established by the National Bank of Ukraine
under which Ukrainian national currency – UAH (Ukrainian hryvnia) will be exchanged for foreign
currency (USD or EUR). Calculated as average value in the corresponding period. Source: National
Bank of Ukraine.
PHARMACEUTICAL INDUSTRY INDICATORS
Export of Pharma Products is an export of goods related to the group “Pharmaceutical products”
under the Ukrainian Classification of Goods for Foreign Economic Activities. Initially calculated in
USD. Source: State Statistics Service of Ukraine.
Import of Pharma Products is an import of goods related to the group “Pharmaceutical products”
under the Ukrainian Classification of Goods for Foreign Economic Activities. Initially calculated in
USD. Source: State Statistics Service of Ukraine.
Pharma Retail Sales are retail sales of different product categories of “pharmacy basket” (drugs,
medical devices, cosmetics and food supplements) in values and volumes. Converted from UAH
to USD in accordance with an average official NBU exchange rate in the corresponding period.
Source: Morion.
WACP (Weighted average cost of a pack) is a ratio of pharma retail sales in values to pharma
retail sales in volumes.
CPI (Consumer price index) is an indicator of changes at the time of prices and tariffs for
commodities and services being purchased by the population for unproductive consumption
calculated to corresponding month of previous year. Source: State Statistics Service of Ukraine.
Pharma Products CPI is a Consumer price index of “Pharmaceutical products, medical products,
appliances and equipment” group calculated to corresponding month of previous year. Source:
State Statistics Service of Ukraine.
Local Companies Share is the share (percent) of sales related to Ukrainian companies in overall
pharma retail sales in values and volumes. Source: Morion
Table: Key Macroeconomic
Indicators in Ukraine
(September 2015-September 2016)
193.2
206.3
196.6
212.3
198.9
176.0
187.3
178.1
177.6 174.8 175.4
180.9
190.4
126.7
130.2
129.0
136.4
133.6
126.8
133.8
125.2
123.6 122.6 122.7
126.2
135.5
100
110
120
130
140
150
160
100
120
140
160
180
200
220
Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
Pharmaceutical Market Retail Sales2015 2016
Volumes
Values mio USD
mio units
119933.222
206.3
1196.6
221122.33
112266.77
130.2
129.0
113366.44
Sep Oct Nov Dec
2015
13.8
12.2 11.7
15.8
8.3
13.3
15.5
13.9
14.2
16.1
13.4 13.6
18.8
122.2
147.1
141.3 142.1
103.7
145.0
125.1
130.0
110.4
132.1 133.1
137.3 140.6
0
20
40
60
80
100
120
140
160
0
4
8
12
16
20
24
Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
Ukraine's International Trade
in Pharma Production
2015 2016
Export
Import
mio USD
mio USD
13.8
12.2 11.7
15.8
122.22
147.1
141.3 142.1
Sep Oct Nov Dec
2015
5.72
6.29
5.92
6.37
4.93 4.93
5.41
5.17 5.39
5.44 5.61 5.57 5.62
1.86
2.04
1.80
2.01
1.60
1.50
1.64
1.76
1.59
1.73
1.87 1.92
1.76
0.0
0.5
1.0
1.5
2.0
2.5
3.0
0
1
2
3
4
5
6
7
Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
Industrial Production Sales &
Retail Turnover of Enterprises Surplus
2015 2016
Retail turnover of enterprises
Industrial production sales
bn USD
5.72
6.29
5.92
6.37
11.8866
2.04
1.80
2.01
Sep Oct Nov Dec
2015
bn USD
21.8 21.8
23.3 23.4 24.3
26.4 26.4 25.6 25.2 25.0 24.8 25.1
26.3
26.1
24.6 25.1 25.4 26.3
29.3 29.2 29.1 28.5 28.1 27.5 28.1
29.5
151.9
146.4 146.6
143.3 140.3
132.7
120.9
109.8 107.5 106.9 107.9 108.4 107.9
0
20
40
60
80
100
120
140
160
0
5
10
15
20
25
30
35
40
45
50
Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
2015 2016 Official Currency Exchange Rates
vs. Consumer Price Index
UAH / EUR
UAH / USD
CPI
2211.88 2211.88
23.3 23.4
26.1
24.6 25.1 25.4
115511.99
146.4 146.6
143.3
Sep Oct Nov Dec
22001155
Page 3
Ukrainian Pharmaceutical Market Monthly: October 2016
KEY ECONOMIC EVENTS
»» The EBRD downgraded forecast for the Ukrainian GDP growth in 2016 from 2.0% to 1.5%. “Ukraine’s economy
resumed growth in the first half of 2016 after a total fall of GDP by 16% over the previous two years. Bad loans
remain an acute problem for Ukraine,” the Bank said.
»» IMF forecasts 2.5% GDP growth for Ukraine in 2017 and +4% in 2021. Consumer inflation in Ukraine in 2016 is
expected at 15.1%, and at 11% in 2017. The World Bank predicts that GDP will grow by 1% in 2016, by 2% in 2017.
WB in Ukraine economist Anastasia Holovach said Ukraine’s econopmy grew by 0.8% in the six months of 2016.
»» Ukraine was ranked 80th
country in Doing Business 2017 rating prepared by the World Bank, climbing 1 position
y-o-y. Ukraine has shown best improvements in Protecting Minority Investors (from 101st
to 70th
position) and
Enforcing Contracts (from 81st
to 93rd
position) topics.
»» On Oct 20, Ukrainian Parliament approved the Draft Budget 2017 in the first reading. The spending plan is
based on 3% y-o-y GDP growth, 8.1% y-o-y CPI growth and 27.2 UAH/USD exchange rate.
»» Submission of e-declarations by Ukraine’s top officials has shown that most of them including the President, the
PM, the Head of the National Bank keep their savings in foreign currency. Moreover, they prefer using foreign
banks for their savings.
»» In Sep, Ukraine’s Gross International Reserves have grown 9.9% to USD 15.5 bn in the virtue of the IMF loan
tranche and Eurobonds placement.
»» Ukrainian President promised the EU would approve visa-free travel regime with Ukraine in by Nov 24, 2016,
the day of the Ukraine-EU summit.
»» Ukrainian PM proposed doubling minimum monthly wage in Ukraine to UAH 3,200 (123 USD) since 2017.
Thereby, the Head of the government asked Parliament to amend the Draft Budget 2017.
»» On Oct 13, Ukraine’s President signed the law on ratification of agreement between Ukraine and the European
Investment Bank on allocation of EUR 400 mio for projects in agriculture.
»» Ukrainian industry showed 2% y-o-y growth in Sep. Machinery has grown 4.5% y-o-y, chemicals – 4.8% y-o-y. In
9M2016, the industry grew 2% y-o-y.
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Page 5
Ukrainian Pharmaceutical Market Monthly: October 2016
MARKET & COMPANIES NEWS
Farmak plans to enter
Malaysian market by
the end of 2018
Ukrainian pharmaceutical
company Farmak plans to
register a series of its products in
Malaysia by the end of 2018, the
company’s Business Development
Director said. The company
intends to launch its strategical
preparations, in particular, insulins
and original antiviral drug Amizon
(enisamium iodide). In 2015,
Farmak has already registered
Amizon in Mongolia and now
searching for opportunities
in Southeast Asia – Vietnam,
Malaysia and Indonesia.
In 2015, Farmak increased its
sales by 41.7% to UAH 3.6 bn.
The company plans to expand
its sales at external markets and
reach USD 1 bn sales by 2020.
Farmak’s portfolio includes 200
names of drugs.
Biofarma to export
drugs in Yemen
Ukrainian company
Biofarma signed a long-term
contract with the Department
of Health and Medicine of the
Chamber of Commerce of the
Republic of Yemen on exports
of its drugs in the country.
It is expected that about 20
preparations of Biofarma will be
available to Yemen’s population at
the beginning of 2017.
Biofarma is one of the biggest
local pharmaceutical companies
in Ukraine producing more than
130 brands in 11 pharmaceutical
groups. The company’s key
activity is the manufacturing of
high-technological preparations
made of donor blood as well as
recombinant drugs and bacterial
preparations.
Zdorovye will
cooperate with the
US company
Within the International Economic
Forum “Innovations. Investments.
Kharkiv initiatives”, Ukrainian
company Zdorovye signed
the contract on investment
and industrial activity with
the American pharmaceutical
company Unicity.
Unicity is exploring the possibility
of joint production of drugs in the
Kharkiv region in order to promote
its products in on European
market. “We understand that
the exchange of experience with
one of the largest Ukrainian
pharmaceutical companies will
allow us to subsequently launch
the new high-performance drugs
onto Ukrainian market,” the
Director of Unicity Michael Turner
said.
The GM of Zdorovye Alexandr
Dorovskoy reported that his
company also plans to lunch some
of its preparations like Glutargin
(arginine glutamate), Inflarax
and Arthiflex cream onto the US
market.
Zdorovye was 7th company on
Ukrainian pharmaceutical market
in 9M2016. The company’s
facilities comply with the GMP
requirements, while its portfolio
includes more than 350 items
of medical products of all
pharmacotherapeutic groups.
Arterium launched
new neurological
drug
Arterium Corporation launched
Mediatorn (ipidacrin) used during
inflammations of the peripheral
nervous system, polyneuropathy,
polyradiculopathy, myasthenia
gravis and myasthenic syndrome,
bulbar palsy, multiple sclerosis.
The drug is also used in the
period of recovery organic lesions
of the central nervous system,
accompanied by movement
disorders.
The drug is produced at
GDP certified facilities of
Galychpharm plant. Arterium
Corporation includes two
companies Kievmedpreparat
(Kyiv) and Galychpharm (Lviv).
In 9M2016, Arterium was the
second company at the Ukrainian
pharmaceutical market by sales in
values, climbing 3 positions y-o-y.
Servier and
Ukrainian
distributors fined for
collusion
Antimonopoly Committee of
Ukraine fined Servier Ukraine
for about UAH 1.7 mio for
anticompetitive concerted actions
conducted in cooperation with
Ukrainian distributors. Following
distributors were fined: Optima
Pharm – UAH 180 ths, BaDM
– UAH 903 ths, Alba Ukraine –
UAH 340 ths, Ludmila Pharm
– UAH 424 ths and A’STA – UAH
424 ths.
Earlier, in Sep, the Antimonopoly
Committee fined Swiss company
Alcon Pharmaceuticals and
Ukrainian distributors for a total
of UAH 1.56 mio.
Page 6
Ukrainian Pharmaceutical Market Monthly: October 2016
REGULATORY UPDATES
Reimbursement of medicinal
products’ prices to be implemented
since Jan 2017
Ministry of Health of Ukraine
has numerously expressed to the
public its readiness to implement
the reimbursement of medicinal
products’ prices. Today more and
more often the media inform on
the exact implementation date
of this initiative, which is Jan 01,
2017.
The latest newsmaker on
this occasion was Mr. Nikolay
Povoroznik, Deputy Head of Kyiv
City State Administration, who
presented the draft of City Target
Program «Kievers’ Health» for
2017-2019. The program text is
unpublished so far. According to
Mr. Povoroznik, it is planned to
reimburse the costs of medicinal
products in the following areas:
»» orphan diseases,
»» bronchial asthma,
»» chronic obstructive pulmonary
diseases,
»» diabetes,
»» ulcer diseases.
It is worth to mention that the
details of reimbursement are not
made public yet. It is still not clear
what will be the procedure for
the reimbursement; in particular
if the patients’ expenditures will
be reimbursed completely or
partially.
MOH clarified the procedure of
obtainment of new registration
certificates for products with
perpetual re-registration in
Ukraine
On Oct 20, 2016, the Ministry of
Health of Ukraine published on its
official web-site the clarification
on the mechanism of exchange
of registration certificates for
medicinal products being re-
registered and therefore their
registration became unlimited.
The Ministry provided the
following steps for the new
document obtainment:
»» The applicant submits an
application in optional form to
the State Expert Center with
the request to receive new
certificate instead of the one
that was valid for 5 years.
»» The State Expert Center
prepares the draft registration
certificate of the new form and
provides it to the applicant for
data check and coordination.
»» The State Expert Center
prepares the original document
and submits it for MOH
signature within 3 working
days upon the approval of the
draft registration certificate of
new form by the applicant.
»» The applicant receives the new
document at the State Expert
Center. In order to receive the
registration certificate the
applicant should provide the
power of attorney confirming
its authorities.
Please pay your attention to the
fact that there is no legislative
procedure for application
and obtainment of the new
registration certificate. In
addition, it is worth to mention
that the Ministry of Health does
not provide the terms for decision
making at each stage: the term
for the coordination of draft
certificate prepared by the State
Expert Center, the term for MOH
signing the original registration
certificate and it’s returning to the
State Expert Center.
Moreover, the temporary old
registration certificate is valid
within the stated terms (5
years), and it may be optionally
exchanged by the applicant within
the established term.
MOH invokes the termination of
the number of orders due to the
cancelation of medical devices’
registration in Ukraine
On Oct 07, 2016, the Ministry of
Health at its web-site provided
for public consideration the Draft
MOH Order «On the Annulment of
Orders of the Ministry of Health
of Ukraine on State Registration
of Medical Devices» (hereinafter –
the «Draft»).
The Draft provides for the
annulment of the following orders:
»» MOH Order #478 dated
02.07.2012 «On Approval of
the List of Medical Devices
Subject to State Registration
(Re-registration) in Ukraine»;
»» MOH Order #979 dated
30.11.2012 «On Approval of
the Procedures on Import to
the Territory of Ukraine of
Unregistered Medical Devices»;
»» MOH Order #616 dated
03.08.2012 «On Approval of
Rules of Conduct of Medical
Devices’ Clinical Trials and of
Model Regulation on Ethics
Commission».
It is worth to mention that the
state registration of medical
devices in Ukraine has been
terminated since Jul 01, 2015.
In a year, starting from Jul 01,
2016, such registration gave
place to the assessment of
medical devices’ compliance with
the relevant technical regulations
(including for in vitro diagnostics
and active implanted medical
devices).
Provided by
Page 7
Ukrainian Pharmaceutical Market Monthly: October 2016
HEALTHCARE NEWS
Ukraine to approve full
law package for healthcare
reformation by year-end
The Memorandum Ukraine signed
with the IMF, obliges Ukraine
to approve the full package of
law, which would allow to reform
healthcare system of Ukraine.
According to the document,
the reforms should relate to
decentralization, enhance of
autonomisation of hospitals and
transfer to funding based on
medical services provided, not
hospital beds.
The Memorandum states that
Ukraine has already managed to
decrease the number of hospital
beds from 80 to 60 per 10 ths
population and reformed the
system of public procurement
of pharmaceutical and medical
equipment.
Head of State Service on
pharmaceutical products and
drugs control appointed
On Oct 4, Natalia Gudz has
become the winner of the
competition for the position
of Head of State Service on
pharmaceutical products and
drugs control. Earlier Mrs. Gudz
headed territorial administration
of the authority in Kyiv. Vladyslav
Tsylin was appointed at the
position of The First Deputy Head
of the Service.
Transition to insurance medicine to
start in 2017
Transfer of the healthcare
system to the insurance model
will start in 2017 and will last 3
years, the Deputy Head of the
MOH Pavlo Kovtoniuk said. The
transformation is to start from
the launch of family medicine
based the European model,
which would allow Ukrainians
to freely choose family doctor
and pediatrician and to sign
direct contracts with them. The
contracts will indicate the amount
of services, guaranteed and paid
by the state.
The work of the physicians will be
paid according to the standards
depending on the number of
contracts concluded with the
doctor. Wherein, doctors primary
care physicians will be able to
choose any organizational form
of work: private entrepreneur,
polyclinics, dispensaries, etc.
The reform does not provide for
the introduction of new taxes or
insurance premiums.
State Program for funding of
artificial heart installation may be
launched since 2017
Since 2017, the government
may launch State Program,
which would allow financing
the implantation of “mechanical
hearts” in Ukraine. The Head
of Heart Institute of the MOH
Borys Todurov stated that
preliminarily, the program
provides for allocation of UAH 15
mio, which would allow to conduct
5 implantation surgeries a year.
Moreover, the experts see the
Program as a first step towards
transplantation in Ukraine. In Nov
16, the surgeons of the Heart
Institute successfully conducted
the second in Ukraine operation
on artificial heart implantation.
MOH initiates creation of the
National Health Service of Ukraine
The MOH developed the Draft
Resolution, which aims to create
the National Health Service of
Ukraine. The Body is to perform
the role of a single national
customer of healthcare services
by concluding contracts with
healthcare providers at all levels
and forms of property related to
the purchase of medical services
within the state guaranteed
health care package, which will
create competition between
potential service providers. The
Service will dispose the public
funds intended to cover the cost
of insurance for all citizens of
Ukraine in the framework of the
state guaranteed healthcare
package.
Page 8
Ukrainian Pharmaceutical Market Monthly: October 2016
Belarus
Since the beginning of 2016,
Belmedpreparaty pharmaceutical
company mastered the production
of 16 new drugs. Among them
are analogues of Indian and
Cuban drugs, which have import
substitution significance
NatiVita company launched
targeted drug, which influence
solely the cancer cells and thus
do not affect healthy organs and
tissues.
NatiVita company research
center in Beshankovichy. The
company’s director stated that in
2017 NatiVita plans to establish a
production of six innovative drugs.
Kazakhstan
Vice Minister for Healthcare
and Social Development of
Kazakhstan met with Heads
of Slovenian companies and
discussed the possibilities for
establishing production facilities
of KRKA and Lek (Sandoz) in
Kazakhstan.
Within Kazakh-Hungarian
business forum, Kaznex Invest
company and International
research and production
holding Phytochemistry signed
agreement with Hungarian
company PannonPharma LTD on
organization of manufacturing
of original medicines based on
natural substances in Karaganda.
In 8M2016, the amount
production of pharmaceuticals in
Kazakhstan reached KZT 24.4
bn (2.5% PPG growth). In 1H2016,
the production of antibiotics
increased 30% PPG, which was
related to the commissioning of
the new plant of Chimpahrm JSC
(SANTO).
On 24/10/2016, Nobel AFF
launched its fifth production
hall, the construction of which
had started in Jan 2015. The
total production area is 900
m2. The hall will be used for the
manufacturing of medicines and
packages.
Russia
National Immunobiological
Company (NacImBio) and
Siemens Healthineers signed the
agreement on cooperation and
partnership. The parties intend to
create working group for analysis
of mutual spheres of interest.
Federal Antimonopoly Service
endorsed Joyful Group (British
Virgin Islands) to conduct
acquisition of 20% voting shares
of the Russian Boicad Holding ltd.
Geropharm company received
investments form Russian Direct
Investment Fund, which will be
allocated for the construction of a
new high-tech industrial complex
of full cycle in St. Petersburg.
BIOCAD company intends to
expand its presence in South-East
Asia by increasing the volume of
supplies to Sri Lanka, Vietnam
and Bangladesh. The company
also plans to enter the markets
of Mexico, Argentina and other
countries of Latin America.
On 11/10/2016, Novosibirsk
Research Institute of Tuberculosis
presented new nano aerosol
forms of anti-TB drugs, which
have significantly lower adverse
effects. The Institute will
conducts preclinical and clinical
trials of the drug forms.
Sberbank banking company
granted RUB 3.3 bn to Polysan
pharmaceutical company for
the construction of the third
production line as well as bank
guarantees for RUB 3 bn to
Pharmimex company.
On 12-14 October, Sintez JSC
reached the range of cooperation
agreements with Belarus
companies. The company intends
to increase the supply of own
drugs in Belarus by 1.5 times
On 22/10/2016, Mechnikov
plant, which had been built with
participation of Russia, was put
into operation in Nicaragua. The
plant is expected to produce
30 m doses of vaccines against
influenza per season.
On 25/10/2016, Akrikhin JSC
and Acticomp CJSC signed the
protocol on cooperation for the
production of pharmaceuticals.
Akrikhin JSC plans to produce
finished drugs based on
substances developed by
Acticomp CJSC.
In next 3-5 years, Bayer plans to
increase the local production of
pharmaceuticals and agricultural
products to 30% of the overall
sales in Russia.
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Strategy / Change Management
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UPharma Consulting is a
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company, operating in the
Life Sciences sector. We
deliver best global practices
in market knowledge,
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marketing and strategy in
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Upharmacia - October 2016

  • 1. UpharmaciaUkrainian Pharmaceutical Market Monthly Macroeconomic Environment | Market & Companies News | Regulatory Updates | Healthcare News | Issue: 10 2016
  • 2. Page 2 Ukrainian Pharmaceutical Market Monthly: October 2016 2015 2016 Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep MACROECONOMIC INDICATORS Q4 Q1 Q2 Q3 GDP (US$ bn) 25.588 17.655 21.053 growth, % y-o-y -17% 0.1% -0.02% Export of Goods (US$ bn) 3.35 3.23 3.13 3.36 2.04 3.08 2.99 3.10 2.88 2.93 2.92 3.18 3.16 growth, % y-o-y -22% -23% -21% -11% -31% 3% -13% 1% -2% -5% -7% 3% -6% Import of Goods (US$ bn) 3.24 3.22 3.07 3.12 2.23 2.68 3.35 3.05 2.69 2.87 3.09 3.45 3.48 growth, % y-o-y -30% - 27% -27% -32% -26% -6% 5% 7% 2% 4% 4% -11% 8% Industrial Production Sales (US$ bn) 5.72 6.29 5.92 6.37 4.93 4.93 5.41 5.17 5.39 5.44 5.61 5.57 5.62 growth, % y-o-y -20% -21% -19% -17% -18% 8% -2% -12% -5% -6% -2% 3% -2% Retail Turnover of Enterprises (US$ bn) 1.86 2.04 1.80 2.01 1.60 1.50 1.64 1.76 1.59 1.73 1.87 1.92 1.76 growth, % y-o-y -38% -31% -33% -29% -19% 4% 2% 6% -18% -6% -3% 2% -5% Unemployment Rate (%) 1.5 1.5 1.6 1.9 1.9 1.9 1.7 1.6 1.6 1.5 1.4 1.3 1.3 Average Salary (US$) 199 207 193 223 180 174 187 191 198 214 217 208 204 OFFICIAL CURRENCY EXCHANGE RATE UAH / USD 21.8 21.8 23.3 23.4 24.3 26.4 26.4 25.6 25.2 25.0 24.8 25.1 26.3 UAH / EUR 24.5 24.6 25.1 25.4 26.3 29.3 29.2 29.1 28.5 28.1 27.5 28.1 29.5 PHARMACEUTI CAL INDUSTRY INDICATORS Export of Pharma Products (mio USD) 13.79 12.2 11.7 15.77 8.31 13.33 15.54 13.90 14.17 16.15 13.36 13.58 18.8 growth, % y-o-y -47% -37% -52% -28% -30% 11% 16% 3% 9% 5% -4% 51% 37% Import of Pharma Products (mio USD) 121.1 147.1 141.3 142.1 103.7 145.0 125.1 130.0 110.4 132.1 133.1 137.3 140.6 growth, % y-o-y -31% -28% -24% -42% 15% 27% 21% 25% 31% 15% 25% 47% 15% Pharma Retail Sales, values (mio USD) 193.2 206.3 196.6 212.3 198.9 176.0 187.3 178.1 177.6 174.8 175.4 180.9 190.4 growth, % y-o-y -28% -26% -20% -18% -17% -1% -5% -1% -8% -2% 2% 2% -1% Pharma Retail Sales, volumes (mio units) 126.7 130.2 129.0 136.4 133.6 126.8 133.8 125.2 123.6 122.6 122.7 126.2 135.5 growth, % y-o-y -11% -5% -4% -5% 1% -12% -5% 2% -1% 4% 3% 3% 7% WACP (USD) 1.52 1.58 1.52 1.56 1.49 1.39 1.40 1.42 1.44 1.43 1.43 1.43 1.41 growth, % y-o-y -19% -22% -18% -14% -23% -23% 13% 1% -2% -6% -3% -1% -8% CPI of Ukraine 151.9 146.4 146.6 143.3 140.3 132.7 120.9 109.8 107.5 106.9 107.9 108.4 107.6 Pharmaceutical Products CPI 145.8 142.1 138.1 134.6 131.9 126.9 113.5 108.4 107.3 108.2 107.4 107.2 107.9 Local Companies share, values (%) 41.4 41.4 41.7 40.9 42.3 42.9 42.7 42.3 42.9 42.8 42.8 41.8 42.6 Local Companies share, volumes (%) 76.5 75.7 75.8 76.7 75.6 76.5 76.5 76.7 77.2 77.4 77.9 68.9 68.4 MACROECONOMIC ENVIRONMENT Description of the indicators: MACROECONOMIC INDICATORS GDP (Gross Domestic Product) is an aggregate measure of production equal to the sum of the gross values added of all resident, institutional units engaged in production (plus any taxes, and minus any subsidies, on products not included in the value of their outputs) calculated in current prices. Converted from UAH to USD in accordance with an average official NBU exchange rate in the corresponding period. Hereinafter: excluding the temporarily occupied territory of the Autonomous Republic of Crimea and City of Sevastopol, as well as the part of zone of the antiterrorist operation. Source: State Statistics Service of Ukraine. Export of Goods is a sale of goods by Ukrainian subjects of foreign economic activities to foreign subjects of foreign economic activities (including non-cash payment) with or without exportation of these goods through the customs border of Ukraine, including the re-export of goods. Initially calculated in USD. Source: State Statistics Service of Ukraine. Import of Goods is a purchase (including non-cash payment) of goods by Ukrainian subjects of foreign economic activities in foreign subjects of economic activities with or without the importation of these goods into the territory of Ukraine, including the purchase of goods for domestic consumption by establishments and organizations of Ukraine located abroad. Initially calculated in USD. Source: State Statistics Service of Ukraine. Industrial Production Sales is the value of industrial goods, which are actually shipped in the period, as indicated in documents decorated as the basis for calculating with the buyer (customer), regardless of income payments for them. Converted from UAH to USD in accordance with an average official NBU exchange rate in the corresponding period. Source: State Statistics Service of Ukraine. Retail Turnover of Enterprises is the value of consumer goods sold via retail trade and restaurants to the population by all operating enterprises. It also includes direct retail sales by industrial, transport and other non-trade enterprises. In addition, retail turnover includes retail sales of food products to departments, organizations and enterprises to provide meals to the people they serve (at sanatoria, children’s care institutions, hospitals, etc.). Reflected in current prices. Converted from UAH to USD in accordance with an average official NBU exchange rate in the corresponding period. Source: State Statistics Service of Ukraine. Unemployment Rate is a ratio (percent) of the unemployed registered at the State Employment Service to the average annual population of working age. Source: State Statistics Service of Ukraine. Average Salary is an average value of remuneration in cash and in kind paid to employees for time worked or work done. Converted from UAH to USD in accordance with an average official NBU exchange rate in the corresponding period. Source: State Statistics Service of Ukraine. Official Currency Exchange Rate is the rate established by the National Bank of Ukraine under which Ukrainian national currency – UAH (Ukrainian hryvnia) will be exchanged for foreign currency (USD or EUR). Calculated as average value in the corresponding period. Source: National Bank of Ukraine. PHARMACEUTICAL INDUSTRY INDICATORS Export of Pharma Products is an export of goods related to the group “Pharmaceutical products” under the Ukrainian Classification of Goods for Foreign Economic Activities. Initially calculated in USD. Source: State Statistics Service of Ukraine. Import of Pharma Products is an import of goods related to the group “Pharmaceutical products” under the Ukrainian Classification of Goods for Foreign Economic Activities. Initially calculated in USD. Source: State Statistics Service of Ukraine. Pharma Retail Sales are retail sales of different product categories of “pharmacy basket” (drugs, medical devices, cosmetics and food supplements) in values and volumes. Converted from UAH to USD in accordance with an average official NBU exchange rate in the corresponding period. Source: Morion. WACP (Weighted average cost of a pack) is a ratio of pharma retail sales in values to pharma retail sales in volumes. CPI (Consumer price index) is an indicator of changes at the time of prices and tariffs for commodities and services being purchased by the population for unproductive consumption calculated to corresponding month of previous year. Source: State Statistics Service of Ukraine. Pharma Products CPI is a Consumer price index of “Pharmaceutical products, medical products, appliances and equipment” group calculated to corresponding month of previous year. Source: State Statistics Service of Ukraine. Local Companies Share is the share (percent) of sales related to Ukrainian companies in overall pharma retail sales in values and volumes. Source: Morion Table: Key Macroeconomic Indicators in Ukraine (September 2015-September 2016)
  • 3. 193.2 206.3 196.6 212.3 198.9 176.0 187.3 178.1 177.6 174.8 175.4 180.9 190.4 126.7 130.2 129.0 136.4 133.6 126.8 133.8 125.2 123.6 122.6 122.7 126.2 135.5 100 110 120 130 140 150 160 100 120 140 160 180 200 220 Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Pharmaceutical Market Retail Sales2015 2016 Volumes Values mio USD mio units 119933.222 206.3 1196.6 221122.33 112266.77 130.2 129.0 113366.44 Sep Oct Nov Dec 2015 13.8 12.2 11.7 15.8 8.3 13.3 15.5 13.9 14.2 16.1 13.4 13.6 18.8 122.2 147.1 141.3 142.1 103.7 145.0 125.1 130.0 110.4 132.1 133.1 137.3 140.6 0 20 40 60 80 100 120 140 160 0 4 8 12 16 20 24 Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Ukraine's International Trade in Pharma Production 2015 2016 Export Import mio USD mio USD 13.8 12.2 11.7 15.8 122.22 147.1 141.3 142.1 Sep Oct Nov Dec 2015 5.72 6.29 5.92 6.37 4.93 4.93 5.41 5.17 5.39 5.44 5.61 5.57 5.62 1.86 2.04 1.80 2.01 1.60 1.50 1.64 1.76 1.59 1.73 1.87 1.92 1.76 0.0 0.5 1.0 1.5 2.0 2.5 3.0 0 1 2 3 4 5 6 7 Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Industrial Production Sales & Retail Turnover of Enterprises Surplus 2015 2016 Retail turnover of enterprises Industrial production sales bn USD 5.72 6.29 5.92 6.37 11.8866 2.04 1.80 2.01 Sep Oct Nov Dec 2015 bn USD 21.8 21.8 23.3 23.4 24.3 26.4 26.4 25.6 25.2 25.0 24.8 25.1 26.3 26.1 24.6 25.1 25.4 26.3 29.3 29.2 29.1 28.5 28.1 27.5 28.1 29.5 151.9 146.4 146.6 143.3 140.3 132.7 120.9 109.8 107.5 106.9 107.9 108.4 107.9 0 20 40 60 80 100 120 140 160 0 5 10 15 20 25 30 35 40 45 50 Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep 2015 2016 Official Currency Exchange Rates vs. Consumer Price Index UAH / EUR UAH / USD CPI 2211.88 2211.88 23.3 23.4 26.1 24.6 25.1 25.4 115511.99 146.4 146.6 143.3 Sep Oct Nov Dec 22001155 Page 3 Ukrainian Pharmaceutical Market Monthly: October 2016 KEY ECONOMIC EVENTS »» The EBRD downgraded forecast for the Ukrainian GDP growth in 2016 from 2.0% to 1.5%. “Ukraine’s economy resumed growth in the first half of 2016 after a total fall of GDP by 16% over the previous two years. Bad loans remain an acute problem for Ukraine,” the Bank said. »» IMF forecasts 2.5% GDP growth for Ukraine in 2017 and +4% in 2021. Consumer inflation in Ukraine in 2016 is expected at 15.1%, and at 11% in 2017. The World Bank predicts that GDP will grow by 1% in 2016, by 2% in 2017. WB in Ukraine economist Anastasia Holovach said Ukraine’s econopmy grew by 0.8% in the six months of 2016. »» Ukraine was ranked 80th country in Doing Business 2017 rating prepared by the World Bank, climbing 1 position y-o-y. Ukraine has shown best improvements in Protecting Minority Investors (from 101st to 70th position) and Enforcing Contracts (from 81st to 93rd position) topics. »» On Oct 20, Ukrainian Parliament approved the Draft Budget 2017 in the first reading. The spending plan is based on 3% y-o-y GDP growth, 8.1% y-o-y CPI growth and 27.2 UAH/USD exchange rate. »» Submission of e-declarations by Ukraine’s top officials has shown that most of them including the President, the PM, the Head of the National Bank keep their savings in foreign currency. Moreover, they prefer using foreign banks for their savings. »» In Sep, Ukraine’s Gross International Reserves have grown 9.9% to USD 15.5 bn in the virtue of the IMF loan tranche and Eurobonds placement. »» Ukrainian President promised the EU would approve visa-free travel regime with Ukraine in by Nov 24, 2016, the day of the Ukraine-EU summit. »» Ukrainian PM proposed doubling minimum monthly wage in Ukraine to UAH 3,200 (123 USD) since 2017. Thereby, the Head of the government asked Parliament to amend the Draft Budget 2017. »» On Oct 13, Ukraine’s President signed the law on ratification of agreement between Ukraine and the European Investment Bank on allocation of EUR 400 mio for projects in agriculture. »» Ukrainian industry showed 2% y-o-y growth in Sep. Machinery has grown 4.5% y-o-y, chemicals – 4.8% y-o-y. In 9M2016, the industry grew 2% y-o-y.
  • 4. RECRUITING & EXECUTIVE SEARCH We recruit pharma people in the CIS region and focus on: > Sales & Marketing > Regulatory Affairs > Quality Assurance > Finances > Operations > Administration We aim to be your trusted advisor in People Management Anastasiya MAXIMENKO Partner, HR-Consulting AMaximenko@upharma-c.com +380 (44) 232-11-43 +380 (97) 953-68-14
  • 5. Page 5 Ukrainian Pharmaceutical Market Monthly: October 2016 MARKET & COMPANIES NEWS Farmak plans to enter Malaysian market by the end of 2018 Ukrainian pharmaceutical company Farmak plans to register a series of its products in Malaysia by the end of 2018, the company’s Business Development Director said. The company intends to launch its strategical preparations, in particular, insulins and original antiviral drug Amizon (enisamium iodide). In 2015, Farmak has already registered Amizon in Mongolia and now searching for opportunities in Southeast Asia – Vietnam, Malaysia and Indonesia. In 2015, Farmak increased its sales by 41.7% to UAH 3.6 bn. The company plans to expand its sales at external markets and reach USD 1 bn sales by 2020. Farmak’s portfolio includes 200 names of drugs. Biofarma to export drugs in Yemen Ukrainian company Biofarma signed a long-term contract with the Department of Health and Medicine of the Chamber of Commerce of the Republic of Yemen on exports of its drugs in the country. It is expected that about 20 preparations of Biofarma will be available to Yemen’s population at the beginning of 2017. Biofarma is one of the biggest local pharmaceutical companies in Ukraine producing more than 130 brands in 11 pharmaceutical groups. The company’s key activity is the manufacturing of high-technological preparations made of donor blood as well as recombinant drugs and bacterial preparations. Zdorovye will cooperate with the US company Within the International Economic Forum “Innovations. Investments. Kharkiv initiatives”, Ukrainian company Zdorovye signed the contract on investment and industrial activity with the American pharmaceutical company Unicity. Unicity is exploring the possibility of joint production of drugs in the Kharkiv region in order to promote its products in on European market. “We understand that the exchange of experience with one of the largest Ukrainian pharmaceutical companies will allow us to subsequently launch the new high-performance drugs onto Ukrainian market,” the Director of Unicity Michael Turner said. The GM of Zdorovye Alexandr Dorovskoy reported that his company also plans to lunch some of its preparations like Glutargin (arginine glutamate), Inflarax and Arthiflex cream onto the US market. Zdorovye was 7th company on Ukrainian pharmaceutical market in 9M2016. The company’s facilities comply with the GMP requirements, while its portfolio includes more than 350 items of medical products of all pharmacotherapeutic groups. Arterium launched new neurological drug Arterium Corporation launched Mediatorn (ipidacrin) used during inflammations of the peripheral nervous system, polyneuropathy, polyradiculopathy, myasthenia gravis and myasthenic syndrome, bulbar palsy, multiple sclerosis. The drug is also used in the period of recovery organic lesions of the central nervous system, accompanied by movement disorders. The drug is produced at GDP certified facilities of Galychpharm plant. Arterium Corporation includes two companies Kievmedpreparat (Kyiv) and Galychpharm (Lviv). In 9M2016, Arterium was the second company at the Ukrainian pharmaceutical market by sales in values, climbing 3 positions y-o-y. Servier and Ukrainian distributors fined for collusion Antimonopoly Committee of Ukraine fined Servier Ukraine for about UAH 1.7 mio for anticompetitive concerted actions conducted in cooperation with Ukrainian distributors. Following distributors were fined: Optima Pharm – UAH 180 ths, BaDM – UAH 903 ths, Alba Ukraine – UAH 340 ths, Ludmila Pharm – UAH 424 ths and A’STA – UAH 424 ths. Earlier, in Sep, the Antimonopoly Committee fined Swiss company Alcon Pharmaceuticals and Ukrainian distributors for a total of UAH 1.56 mio.
  • 6. Page 6 Ukrainian Pharmaceutical Market Monthly: October 2016 REGULATORY UPDATES Reimbursement of medicinal products’ prices to be implemented since Jan 2017 Ministry of Health of Ukraine has numerously expressed to the public its readiness to implement the reimbursement of medicinal products’ prices. Today more and more often the media inform on the exact implementation date of this initiative, which is Jan 01, 2017. The latest newsmaker on this occasion was Mr. Nikolay Povoroznik, Deputy Head of Kyiv City State Administration, who presented the draft of City Target Program «Kievers’ Health» for 2017-2019. The program text is unpublished so far. According to Mr. Povoroznik, it is planned to reimburse the costs of medicinal products in the following areas: »» orphan diseases, »» bronchial asthma, »» chronic obstructive pulmonary diseases, »» diabetes, »» ulcer diseases. It is worth to mention that the details of reimbursement are not made public yet. It is still not clear what will be the procedure for the reimbursement; in particular if the patients’ expenditures will be reimbursed completely or partially. MOH clarified the procedure of obtainment of new registration certificates for products with perpetual re-registration in Ukraine On Oct 20, 2016, the Ministry of Health of Ukraine published on its official web-site the clarification on the mechanism of exchange of registration certificates for medicinal products being re- registered and therefore their registration became unlimited. The Ministry provided the following steps for the new document obtainment: »» The applicant submits an application in optional form to the State Expert Center with the request to receive new certificate instead of the one that was valid for 5 years. »» The State Expert Center prepares the draft registration certificate of the new form and provides it to the applicant for data check and coordination. »» The State Expert Center prepares the original document and submits it for MOH signature within 3 working days upon the approval of the draft registration certificate of new form by the applicant. »» The applicant receives the new document at the State Expert Center. In order to receive the registration certificate the applicant should provide the power of attorney confirming its authorities. Please pay your attention to the fact that there is no legislative procedure for application and obtainment of the new registration certificate. In addition, it is worth to mention that the Ministry of Health does not provide the terms for decision making at each stage: the term for the coordination of draft certificate prepared by the State Expert Center, the term for MOH signing the original registration certificate and it’s returning to the State Expert Center. Moreover, the temporary old registration certificate is valid within the stated terms (5 years), and it may be optionally exchanged by the applicant within the established term. MOH invokes the termination of the number of orders due to the cancelation of medical devices’ registration in Ukraine On Oct 07, 2016, the Ministry of Health at its web-site provided for public consideration the Draft MOH Order «On the Annulment of Orders of the Ministry of Health of Ukraine on State Registration of Medical Devices» (hereinafter – the «Draft»). The Draft provides for the annulment of the following orders: »» MOH Order #478 dated 02.07.2012 «On Approval of the List of Medical Devices Subject to State Registration (Re-registration) in Ukraine»; »» MOH Order #979 dated 30.11.2012 «On Approval of the Procedures on Import to the Territory of Ukraine of Unregistered Medical Devices»; »» MOH Order #616 dated 03.08.2012 «On Approval of Rules of Conduct of Medical Devices’ Clinical Trials and of Model Regulation on Ethics Commission». It is worth to mention that the state registration of medical devices in Ukraine has been terminated since Jul 01, 2015. In a year, starting from Jul 01, 2016, such registration gave place to the assessment of medical devices’ compliance with the relevant technical regulations (including for in vitro diagnostics and active implanted medical devices). Provided by
  • 7. Page 7 Ukrainian Pharmaceutical Market Monthly: October 2016 HEALTHCARE NEWS Ukraine to approve full law package for healthcare reformation by year-end The Memorandum Ukraine signed with the IMF, obliges Ukraine to approve the full package of law, which would allow to reform healthcare system of Ukraine. According to the document, the reforms should relate to decentralization, enhance of autonomisation of hospitals and transfer to funding based on medical services provided, not hospital beds. The Memorandum states that Ukraine has already managed to decrease the number of hospital beds from 80 to 60 per 10 ths population and reformed the system of public procurement of pharmaceutical and medical equipment. Head of State Service on pharmaceutical products and drugs control appointed On Oct 4, Natalia Gudz has become the winner of the competition for the position of Head of State Service on pharmaceutical products and drugs control. Earlier Mrs. Gudz headed territorial administration of the authority in Kyiv. Vladyslav Tsylin was appointed at the position of The First Deputy Head of the Service. Transition to insurance medicine to start in 2017 Transfer of the healthcare system to the insurance model will start in 2017 and will last 3 years, the Deputy Head of the MOH Pavlo Kovtoniuk said. The transformation is to start from the launch of family medicine based the European model, which would allow Ukrainians to freely choose family doctor and pediatrician and to sign direct contracts with them. The contracts will indicate the amount of services, guaranteed and paid by the state. The work of the physicians will be paid according to the standards depending on the number of contracts concluded with the doctor. Wherein, doctors primary care physicians will be able to choose any organizational form of work: private entrepreneur, polyclinics, dispensaries, etc. The reform does not provide for the introduction of new taxes or insurance premiums. State Program for funding of artificial heart installation may be launched since 2017 Since 2017, the government may launch State Program, which would allow financing the implantation of “mechanical hearts” in Ukraine. The Head of Heart Institute of the MOH Borys Todurov stated that preliminarily, the program provides for allocation of UAH 15 mio, which would allow to conduct 5 implantation surgeries a year. Moreover, the experts see the Program as a first step towards transplantation in Ukraine. In Nov 16, the surgeons of the Heart Institute successfully conducted the second in Ukraine operation on artificial heart implantation. MOH initiates creation of the National Health Service of Ukraine The MOH developed the Draft Resolution, which aims to create the National Health Service of Ukraine. The Body is to perform the role of a single national customer of healthcare services by concluding contracts with healthcare providers at all levels and forms of property related to the purchase of medical services within the state guaranteed health care package, which will create competition between potential service providers. The Service will dispose the public funds intended to cover the cost of insurance for all citizens of Ukraine in the framework of the state guaranteed healthcare package.
  • 8. Page 8 Ukrainian Pharmaceutical Market Monthly: October 2016 Belarus Since the beginning of 2016, Belmedpreparaty pharmaceutical company mastered the production of 16 new drugs. Among them are analogues of Indian and Cuban drugs, which have import substitution significance NatiVita company launched targeted drug, which influence solely the cancer cells and thus do not affect healthy organs and tissues. NatiVita company research center in Beshankovichy. The company’s director stated that in 2017 NatiVita plans to establish a production of six innovative drugs. Kazakhstan Vice Minister for Healthcare and Social Development of Kazakhstan met with Heads of Slovenian companies and discussed the possibilities for establishing production facilities of KRKA and Lek (Sandoz) in Kazakhstan. Within Kazakh-Hungarian business forum, Kaznex Invest company and International research and production holding Phytochemistry signed agreement with Hungarian company PannonPharma LTD on organization of manufacturing of original medicines based on natural substances in Karaganda. In 8M2016, the amount production of pharmaceuticals in Kazakhstan reached KZT 24.4 bn (2.5% PPG growth). In 1H2016, the production of antibiotics increased 30% PPG, which was related to the commissioning of the new plant of Chimpahrm JSC (SANTO). On 24/10/2016, Nobel AFF launched its fifth production hall, the construction of which had started in Jan 2015. The total production area is 900 m2. The hall will be used for the manufacturing of medicines and packages. Russia National Immunobiological Company (NacImBio) and Siemens Healthineers signed the agreement on cooperation and partnership. The parties intend to create working group for analysis of mutual spheres of interest. Federal Antimonopoly Service endorsed Joyful Group (British Virgin Islands) to conduct acquisition of 20% voting shares of the Russian Boicad Holding ltd. Geropharm company received investments form Russian Direct Investment Fund, which will be allocated for the construction of a new high-tech industrial complex of full cycle in St. Petersburg. BIOCAD company intends to expand its presence in South-East Asia by increasing the volume of supplies to Sri Lanka, Vietnam and Bangladesh. The company also plans to enter the markets of Mexico, Argentina and other countries of Latin America. On 11/10/2016, Novosibirsk Research Institute of Tuberculosis presented new nano aerosol forms of anti-TB drugs, which have significantly lower adverse effects. The Institute will conducts preclinical and clinical trials of the drug forms. Sberbank banking company granted RUB 3.3 bn to Polysan pharmaceutical company for the construction of the third production line as well as bank guarantees for RUB 3 bn to Pharmimex company. On 12-14 October, Sintez JSC reached the range of cooperation agreements with Belarus companies. The company intends to increase the supply of own drugs in Belarus by 1.5 times On 22/10/2016, Mechnikov plant, which had been built with participation of Russia, was put into operation in Nicaragua. The plant is expected to produce 30 m doses of vaccines against influenza per season. On 25/10/2016, Akrikhin JSC and Acticomp CJSC signed the protocol on cooperation for the production of pharmaceuticals. Akrikhin JSC plans to produce finished drugs based on substances developed by Acticomp CJSC. In next 3-5 years, Bayer plans to increase the local production of pharmaceuticals and agricultural products to 30% of the overall sales in Russia. CIS REGION PHARMA NEWS
  • 9. Business Consulting HR- Consulting Market Access Business Education Support of M&A Deals / Pre-investment Due Diligence Commercial Audit / Business Diagnostics FCPA Audit / Reputational Audit Executive Search / Recuiting Organizational Consulting / Personnel Assessment Outplacement Launch Planning / Marketing Analysis & Planning Regulatory Environment Audit / Business Modelling Analysis of Prescribers and Consumers Business Training for Pharmaceutical Companies: Strategy / Change Management New Launches / Marketing 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. UPharma Consulting 21st Marshal Tymoshenko str., building 7, office 5 Kiev, 04212 Ukraine +380 (44) 232 1142 +380 (44) 232 1143 upharma-c.com mailbox@upharma-c.com Subscribe to Upharmacia instantly!