Ukraine drug market growing fast

The market reached $1.06 billion (€820m) in 2004, still small compared to Western European countries but a significant hike on its $871m value in 2003 and $682m in 2002.

The report noted that last year's large increase in the size of the drugs market resulted from increased drug imports (worth a total of $659m, including $31.9m from the US) and higher local drugs production. Imported pharmaceuticals accounted for 62 per cent of the Ukrainian drugs market last year, with 19.7 per cent of drugs imports coming from Germany, 14.7 per cent from India, and 9.5 per cent from France. Drugs imports from the US accounted for 3 per cent of total imports last year. The domestic industry's exports amounted to a little over $50m last year.

Most multinational pharmaceutical manufacturers are present in the Ukrainian market, either with representative offices or through local distributors, according to BISNIS.

Companies from eastern Europe are active in the market and command a degree of loyalty from both patients and doctors, who are familiar with their products as a result of their long-term presence in the market which dates back to the Soviet era.

Meanwhile, there are currently 58 companies manufacturing drugs in Ukraine, with most of them producing lower-priced products, such as generic drugs and vitamins. The largest companies include Darnytsia, Kyivmedpreparat, Pharmak and Halychpharm.

The domestic sector is still going through a transitional phase, the privatization of state-owned enterprises and consolidation as the country adapts to the changing operating environment in eastern Europe.

Just last month, Ukraine's government approved the merger of the country's fifth and sixth-largest drugmakers Kyivmedpreparat and Halychpharm to create Arterium Corp, which will engage in research, marketing and distribution of new medicines.