STATE AND DEVELOPMENT TRENDS OF THE PHARMACEUTICAL INDUSTRY

Litiahina Mariia

DIPLOMA PROJECT

• The topicality of the problem is connected with the fact that the pharmaceutical market today is one of the most promising and fastest growing markets in the economy of Ukraine.

• The Purpose of the diploma project is to investigate the state and development trends of the pharmaceuticals industry and compose recommendations to improve the competitive capacity of enterprises of the pharmaceutical market of Ukraine.

Medicines consumption in Ukraine, bn packages

Table 1

Medicines consumption in Ukraine, USD bn

Table 2

Export of pharmaceutical products from Ukrainaine, USD m

2009 2010 2011 2012 2013 20140

50

100

150

200

250

92

130

151 150

199 195

Table 3

Export of pharmaceutical products

by countries, %

8%

12%

Figure 1

Distributors segment in Ukraine

№ Company Market share %

1 BaDM 28%

2 Optima-Pharm 26%

3 Alba Ukraine 20%

4 Fra-M 7%

5 Venta 7%

Table 4

Main pharmacy chains

№ Company Market share %

1 Med-Service Group 2,95%

2 Farmaciya (Kharkiv) 2,26%

3 Ukrainian Pharmacy Holding 1,89%

4 Arnika 1,88%

5 Farmastor 1,75%

6 Farmaciya (Kyiv) 1,55%

7 Bazhayemo Zdorovya 1,53%

8 Apteka Nyzkyh Tsin 1,5%

9 Falbi 1,46%

10 Titan 1.42%

Table 5

Pharmaceutical Enterprise “Jelfa” SA

A Pharmaceutical Enterprise Jelfa SA – one of the biggest Polish pharmaceutical companies.

1945 – created Pharmaceutical Enterprise Jelfa 2011 – the Company owner has been an international corporation  Valeant Pharmaceuticals International (Canada)

Subdivision Pharmaceutical market

Figure 2

Main competitors of “Jelfa”

Sort by €, MonthMarket Org Sales, k€ GR% MS%Total 1 627 14,2% 100,0%01. Merck & Co (USA) 409 13,1% 25,2%02. Stada-Nizhpharm (Germany-Russia) 174 17,1% 10,7%03. Arterium Corporation OJSC (Ukraine, Kiev) 168 6,1% 10,3%04. Jelfa (Poland) 147 7,0% 9,0%05. Astellas Pharma Europe (Netherlands) 135 21,1% 8,3%06. Darnitsa CJSC (Ukraine, Kiev) 107 6,6% 6,6%07. GSK (Great Britain) 106 16,7% 6,5%08. Sperco Ukraine JV LLC (Ukraine, Vinnitsa) 88 18,7% 5,4%09. Intendis (Germany) 43 0,3% 2,6%10. Gedeon Richter (Hungary) 42 4,9% 2,6%Others 208 31,3% 12,8%

Month

Table 6

Figure 3

SWOT Analysis

• the high level of demand for the company's products

• increase consumer confidence in new products

• the ability to use know-how

• rising inflation• decline in purchasing power• reduced demand for products• increasing energy tariffs

• An effective system of quality control

• the possibility of expanding the range

• established system updated products

• good reputation of the company

• A lot of competitors• lack of marketing research• rarity promotional campaigns

Conclusions and Recommendations:

• promotion of a relatively new company product – Atopra

Conclusions and Recommendations:

• to implement and master the production of dermatological shampoos and care products for problem hair and scalp

Thank you for your attention