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Ukrainian pharmaceutical market

Sector study

Contents

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1. MARKET OVERVIEW 1

2. REGISTRATION OF MEDICINAL PRODUCTS 2 3. LICENSING THE IMPORT OF MEDICINAL PRODUCTS 3 4. STATE PRICE REGULATION 4

5. PUBLIC PROCUREMENT 5

6. PILOT PROJECTS. IMPORT REPLACEMENT 6 7. MARKET TRENDS AND FIGURES IN DETAIL 7

7.1 Ranking of Ukrainian pharmaceutical market among CIS countries 7 7.2 Current pharmaceutical market trends 8 7.3 Main trends among corporations in retail segment 10 7.4 Retail sales trends: leading wholesalers and retail pharmaceutical chains 12 7.5 Background for forecast 14 7.6 Dynamic of pharmaceutical market in values 14 7.7 Other statistical data in detail 15

8. LIST OF TABLES AND FIGURES 23 9. REFERENCES 24

1. MARKET OVERVIEW

According to the information obtained from the Ukrainian State Service for Medication, in 2013 the

volume of the market for pharmaceutics increased by 14% in comparison to the previous year and

amounted to UAH 36.2 billion (€3.345 billion, 1 EUR = 10.82 UAH, as of December 31, 2013. Exchange

rate stated by the National bank of Ukraine). Experts claim that the competition becomes stronger

and the market gets more attractive for both domestic and foreign companies.

In 2013 the sales of Ukrainian companies improved by 17.9% of the amount sold in 2012, and as of

the April 1, 2014, the Ukrainian medications constitute 65.6% of the assortment presented in

drugstores. However, there are some negative trends on the market. About 2/3 of the money that

households spend on medication are received by foreign producers of medication. These companies

supply the same goods as the Ukrainian companies do, though the price they charge is higher. The

average price for a medication produced in Ukraine accounts for UAH 10.9 (€1, 1 EUR = 10.82 UAH, as

of December 31, 2013. Exchange rate stated by the National bank of Ukraine), while the average

proce for the medication produced abroad amount to 47.9 UAH (€4.43, 1 EUR = 10.82 UAH, as of

December 31, 2013. Exchange rate stated by the National bank of Ukraine).

Market specialists state that in Ukraine during 2013 production of medications that contain penicillin

and other antibiotics improved by 16.4% in comparison to 2012, production of medications that

contain hormones and do not contain antibiotics increased by 13.3%, production of medications that

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contain alkaloids or their derivatives and do not contain hormones or antibiotics went up by 9.9%.

There are more than 100 pharmaceutical companies and a network of 20.000 drugstores that operate

on the territory of Ukraine. Furthermore, there was an investment inflow of $120 million in the

pharmaceutical sector in 2013.

2. REGISTRATION OF MEDICINAL PRODUCTS On 15.10.2013 changes to the Order of the MOH of Ukraine "On Approval of the Form and

Description of the Market Authorization for Medicinal Products" dated 29.07.2003 No. 358 (the

Order) came into effect.

From now on the market authorization contains the name of the applicant, its location and the date

of authorization's execution and not issuance as before. The description of the market

authorization among variants of the procedure's name may indicate introduction of amendments

to registration materials (previously only registration/re-registration). Instead of information about

the applicant's country and the date of authorization's issuance now the applicant's location and

the date of printing of the document, respectively, are indicated. The Order of MOH No. 773 dated

03.09.2013 that amends this Order as well as other laws applicable do not oblige the holder of the

market authorization to apply for a market authorization in the new form due to amendments to

the form of the document.

The second page of the market authorization shall indicate the stages of the manufacture process

of the medicinal product for each of the manufacturers, if several manufacturers are stated. In the

same place, in the line "type and size of the package" the number of dosage units in the initial

package, the number of initial packages in the secondary package, if any, the type of the initial and

secondary (if any) packages, the complete set and the language (and) labelling of the package shall

be indicated. In the line "manufacturers" among other things the location of production facilities

shall be stated.

Moreover, the description contains the following two clarifications:

if indications are too long to be legibly indicated, the information may be indicated up to the

logical end with the statement "other indications according to the package insert";

name, location of the manufacturer of the medicinal product and its production facilities,

production stages may be additionally stated in English.

Some issues of proving the bio-equivalency of generics during re-registration On 03.10.2013 the state enterprise "State Expert Centre" at the MOH of Ukraine ("SEC") explained

some provisions of the procedure approved by the Order of the MOH of Ukraine dated 26.08.2008

No. 426 ("the Procedure") as to re-registration of generics ("the Generics") that are used in the

medical practice in Ukraine less than 10 years ("the Explanation").

Pursuant to the Explanation for the re-registration of such Generics the applicant shall submit

information on the method used for proving the bio-equivalency of the respective Generics during

their registration.

If no method of comparative pharmacokinetic research was used to prove the bio-equivalency, and

exactly this method is currently required in Section XX of the Procedure for this type of generics,

the applicant is obliged to provide explanations and materials used to prove the equivalency of the

Generic at the moment of its registration. If the applicant no longer has such documents, it is

obliged to submit a commitment document which shall contain a research program of the Generic's

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bio-equivalency. Such research shall be carried out within two years after obtaining the market

authorization and its results shall be put on the registration file. The Explanation contains a written

form of such commitment document.

It shall be reminded that pursuant to paragraph 4.1.4. Section ХХ of the Procedure pharmacokinetic

research on humans is applied as a method to prove the bio-equivalency of the Generic if it is

possible to obtain measurable concentration of the active substance in a biologic fluid, such as

plasma.

Another procedure may be introduced to the registration of medicinal products On 11.10.2013 the MOH of Ukraine published the draft Order envisaging approval of the procedure

for consideration of materials for a medical device to be submitted for the state registration (re-

registration) ("the Draft").

This Procedure envisages terms for appointment of an assigned person (4 days) for consideration of

materials, terms for verification whether all documents have been submitted (10 days), after which

the applicant receives a referral to an expert examination. The expert examination is carried out in

two stages: first, the compliance of the medical device with the requirements of normative,

technical and operational documents and availability of proofs of its safety is verified. During the

second stage an expert examination of the completeness and results of technical, clinical and

toxicological trials and tests conducted is carried out.

The Draft of this Procedure has been elaborated in enforcement of paragraph 6 of the Procedure

for the state registration of medical equipment and medical devices.

Currently the Draft is being considered at the State Service of Ukraine for Regulatory Policy and

Development of Entrepreneurship.

3. LICENSING THE IMPORT OF MEDICINAL PRODUCTS On 26.09.2013 the MOH has approved with its Order No. 835 the Procedure for the control over

adherence to the licensing terms for the import of medicinal products ("the Procedure"). The draft

Procedure was analyzed in our previous newsletters, namely, in the September Issue. The

Procedure comes into effect on 01.12.2013.

It shall be noted that on 25.09.2013 the State Service on Medicinal Products addressed the State

Service of Ukraine for Regulatory Policy and Development of Entrepreneurship with the question

whether it is possible to carry out inspections of the adherence to the licensing terms for the

import of medicinal products prior to approval of the respective procedure for the control of such

licensing terms.

In its letter dated 03.10.2013 the State Service of Ukraine for Regulatory Policy and Development of

Entrepreneurship did not give a direct answer to this question but referred to the provision of the

Law of Ukraine "On Licensing of Certain Economic Activity Types" about the powers of the licensing

authority to inspect the licensees.

Therefore, the letter of the State Service of Ukraine for Regulatory Policy and Development of

Entrepreneurship above may be used by the State Service on Medicinal Products in order to justify

inspections of importers-licensees prior to enactment of the Procedure. At the same time, from the

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legal point of view this letter cannot be considered a sufficient argument for the respective

inspections of the State Service on Medicinal Products above.

4. STATE PRICE REGULATION State price regulation for medicinal products may be changed

On 02.10.2013 the MOH of Ukraine published a draft Resolution of the Cabinet of Ministers of

Ukraine "On Amendments to Certain Resolution of the Cabinet of Ministers of Ukraine" ("the

Draft") envisaging amendments to the main by-laws in the sphere of the state price regulation for

pharmaceutical products.

In particular, the Draft proposes to cease state price regulation for the mandatory minimum

assortment of (socially oriented) medicinal products and medical devices for pharmacies as

approved by the Order of the MOH of Ukraine dated 29.12.2011 No. 1000.

The Draft also proposes to approve the Provision on the national list of main medicinal products

and medical devices ("the Provision") and to state the list ("the List") in the new version.

The Provision envisages that main medicinal products and medical devices shall be always available

and the List itself is the basis for the creation of the state price regulation for medicinal products,

amendments thereto are made when necessary but at least once in three years.

The new version of the List envisages structuring the medicinal products into classes, groups and

subgroups, and, moreover, it comprises more medicinal products than the current List.

It shall be reminded that prices for medicinal products included to the List are subject to the state

regulation. The current List approved by the Resolution of the Cabinet of Ministers of Ukraine dated

25.03.2009 No. 333 has 215 items and has not been amended after its approval. Moreover, today

there is no provision on such list in Ukraine.

Currently the Draft is at the stage of public discussion.

The State Service of Ukraine for Regulatory Policy and Development of Entrepreneurship prepares

complex measures for expanding the availability of medicinal products for the population

On 27.09.2013 the Service of Ukraine for Regulatory Policy and Development of Entrepreneurship

published information on preparation of complex measures with participation of experts from the

Administration of the President of Ukraine, the MOH of Ukraine, the State Service on Medicinal

Products and SE "SEC" as well as the Bureau of the WHO in Ukraine in order to expand the

availability of medicinal products for the population and to decrease their prices, and to lower the

corruption in this sphere.

These subjects have prepared specific perspective directions for reforms, among which the

following may be highlighted:

updating the National list of the main medicinal products and medical devices by

implementation of the procedure for the state prices reference for the items on the list;

amendments to the Licensing terms for the manufacture of medicinal products, wholesale, retail

with medicinal products as to the sale of preparations through pharmacies only with use of cash

registers;

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non-admission of the practice of the state procurement of various medicinal products "in one

list" and application of the principle "one lot – one medicinal product" without indicating the

dosage;

step-by-step re-declaration with confirmation of prices to medicinal products and completion of

this work in I. quarter 2014.

The Service of Ukraine for Regulatory Policy and Development of Entrepreneur intends to work in

these directions together with the public authorities above and to prepare proposals to submit to

the President.

5. PUBLIC PROCUREMENT

The Bill on peculiarities of the public procurement in the healthcare sector has been published

On 22.10.2013 the MOH of Ukraine published the bill "On Peculiarities of the Public Procurement in

the Healthcare Sector" ("the Bill").

The Bill envisages the possibility to start with the public procurement of medicinal products and

medical devices prior to begin of a budget year and to create the procurement subject as a set of

medicinal products. It shall be noted that this initiative contradicts with the general decision,

including of the State Service of Ukraine for Regulatory Policy and Development of

Entrepreneurship and the MOH of Ukraine, about prevention of the practice of the public

procurement of different medicinal products in "one list" as published by the State Service of

Ukraine for Regulatory Policy and Development of Entrepreneurship dated 27.09.2013.

The Bill also proposes to extend the list of exemptions from the ban to amend the terms of a

contract on the state procurement of medicinal products provided in the Law of Ukraine "On State

Procurement". The Bill proposes a list of 7 additional grounds to change terms of a contract above

after its conclusion, among which:

change of the name of the manufacturer of the medicinal products, presentation, type and size

of the package, shelf life and changes in the package insert that took place after re-registration

of the medicinal product, if the quality and quantity of the medicinal product remain unchanged;

change of the name of the medical device after its re-registration if the registration number

remains unchanged;

consent of the supplier to replace the generic medicinal product with a reference/original one in

the same quantity and provided that this change will not increase the amount stated in the

contract;

change of the validity term of the contract and fulfilment of obligations as to transfer of goods if

the goods supplier confirms with documents objective circumstances that caused such

prolongation, including force majeure, delay in financing customer's expenses, change of the

payment terms for the goods, re-registration of the medicinal product or medical device, long

manufacture process of the product.

Some of the grounds above are technical (e.g. change of the manufacturer's name) but some other

grounds shall, in our opinion, result in a new tender procedure (e.g. presentation is an essential

qualification criterion of the procurement object) and not in the change of the contract terms. The

provision about the possible replacement of a generic preparation with an original may be, on the

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one hand, justified, if there are no changes in the volume or the price. On the other hand, such

provision violates the main principles of the procurement procedure as to the determination and

invariability of the procurement object according to the decision made by the tender commission.

In general, the initiative to implement special rules regulating the procurement of medicinal

products and medical devices is positive. Still, the list of possible changes to the procurement terms

without changing the contract contains a number of ambiguous and risky moments for both parties

as it allows to freely vary the specification – an essential condition of the supply contract and,

therefore, does not comply with the Economic Code of Ukraine and principles of the objectivity and

transparency of the public procurement in full.

Currently the Bill is at the stage of public discussion.

6. PILOT PROJECTS. IMPORT REPLACEMENT

Landmarks for import replacement have been set

On 30.09.2013 the Order of the MOH of Ukraine No. 843 amended the Concept of the development

of the pharmaceutical industry of the healthcare system of Ukraine for 2011-2020 as approved by

the Order of the MOH of Ukraine dated 13.09.2010 No. 769 ("the Concept") with a list of the

pharmaceutical forms of medicinal products used for treatment of the most common

cardiovascular diseases not available on the Ukrainian market. The reference to the list above may

be found in the subsection "Import Replacement" Section 4 of the Concept.

Pursuant to the explanatory note, the Order of the Ministry of Healthcare of Ukraine No. 843 has

been drafted in order to implement the import replacement for the list of priority medicinal

products determined therein envisaged for domestic production that are currently not produced by

domestic manufacturers of pharmaceutical drugs and not available on the Ukrainian market.

The list above contains the following non-proprietary names: Alprostadil, Alteplase,

Acenocoumarol, Verapamil, Diltiazem, Eprosartan, Аcidum Аdenosintriphosphoricum, Labetalol,

Lacidipine, Methyldopa, Nitroglycerin, Prazosinum, Propranolol, Sildenafilum, Trandolapril,

Fenofibrate, and Furosemide.

It shall be noted that due to the amendments to the Concept the import of medicinal products

contained in the list is not limited. At the same time, comprising of the list demonstrates that these

medicinal products will become subject of the state import replacement policy.

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7. MARKET TRENDS AND FIGURES IN DETAIL

Definitions used in the report UAH – Ukrainian local currency, hryvnya USD – United States dollar EURO – European Union currency PPG – refers to a “previous period growth” indicator (growth to the same period of a previous year) EI – refers to an “evolution index” MAT – moving annual total YTD – cumulative total since the begging of the year(investigated month including) MS – market share

CTY – country

7.1 Ranking of Ukrainian pharmaceutical market among CIS countries Ukraine remains the 2nd largest market in CIS, shows positive growth in values and still slow down in units.

Table 1. FY 2013 results by CTYs

Source: SMD 2012, *DSM 2012, ** Vi Ortis, ***SMD estimation

Figure 1. Market shares of CTYs in values and in units.

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Figure 2. Per capita spending in values (USD) and units in CIS, FY2013 results

Per capita consumption in units is much higher in countries, where there are prototypes of

reimbursement system and government participate in compensation of treatment for population

(Kazakhstan, Belarus).

7.2 Current pharmaceutical market trends Ukrainian pharmaceutical market is passing through market redistribution due to obligatory GMP

certification.

Current market trends:

Market is driven by out-of-pocket spending •Obligatory GMP certification market has been cleared from products and companies that do not meet the requirements •Obligatory GMP certification concentration of sales among leading companies and products therapeutical niches •Growth in segment of food supplements, switch of products from OTC to FS •Effect of reimbursement pilot project “products against hypertension” growth in cardiology segment

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Figure 3. Ukraine: Market Trends in Values (USD)

Source: SMD Retail & Hospital Data; includes all categories (Rx, OTC, Food Supplements, Patient & Personal Care); price level – pharmacy purchase price for retail, tender price for hospital data

Figure 4. Ukraine being the 2nd biggest market in CIS, remains mainly out-of-pocket

Source: SMD Retail & Hospital Data; includes only medicines

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Table 2. Top 20 corporations in retail segment – local companies improved position considerably

USD(Rank) USD(Rank) Corporation MM USD USD(%) USD(+-%) EI

Y2012 Y2013 RETAIL SEGMENT 3034 100,0% 9,0% 100

1 1 FARMAK 136 4,5% 4,0% 96

2 2 SANOFI 130 4,3% 7,0% 98

3 3 NOVARTIS 125 4,1% 15,0% 106

4 4 MENARINI GROUP 123 4,0% 15,0% 106

5 5 TAKEDA 108 3,6% 12,0% 103

6 6 TEVA 101 3,3% 10,0% 101

8 7 DARNITSA 93 3,1% 19,0% 109

7 8 SERVIER GROUP 90 3,0% 7,0% 98

10 9 ARTERIUM 83 2,7% 13,0% 103

11 10 BAYER HEALTHCARE 82 2,7% 18,0% 108

9 11 GLAXOSMITHKLINE 82 2,7% 10,0% 101

12 12 GEDEON RICHTER 73 2,4% 16,0% 106

13 13 KRKA 67 2,2% 14,0% 105

14 14 ZDOROVJE GROUP 64 2,1% 12,0% 102

19 15 KIEV VITAMIN FACTORY 51 1,7% 26,0% 115

17 16 ACTAVIS 51 1,70% 12,00% 102

16 17 INTERCHEM UKR 51 1,70% 7,00% 98

18 18 ABBOTT 50 1,60% 20,00% 109

20 19 BORSHCHAHIVSKY CHIMPHARM 45 1,50% 16% 106

21 20 STADA 39 1,30% 11% 101

* local companies are highlighted in bold letters

Source: SMD Statistical Data

7.3 Main trends among corporations in retail segment

Many companies lost position and some of them almost left the market due to GMP certification

(Genom, Grindex, Belbiopharm, Mili, Apotex); small Indian, Russian, Pakistan companies left the

market.

Some companies used opportunities and substitute vacant niches (Kiev Vitamin factory, Abbott,

Bayer Consumer, Novartis Consumer, Astellas, Kuzum).

Local manufacturers lost sales in antibiotic segment, ophthalmology and antivirals.

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Table 3. Example from Statins’ life

Source: SMD Retail Data; Small companies left the market. As well non-GMP factors played role, shortage of stocks, etc.

Table 4. Top 20 leading products – generations change on the market.

Source: SMD Retail Data

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7.4 Retail sales trends: leading wholesalers and retail pharmaceutical chains Leading retail wholesalers – ongoing concentration.

Retail sales during Y2013 have shown ongoing concentration, while Top 6 make 89% of retail sales.

Leading wholesalers have different portfolio – specialization on foreign vs local products, ATC

groups, etc.

•Due to obligatory GMP certification, that took place on the market in Y2013, leading wholesalers

were affected as well. As some products and companies dropped off their portfolio and should be

substituted in short time period.

Figure 5. Top-6 retail wholesalers’ market shares in 2012 and 2013

Source: SMD Retail Wholesalers Report

Leading wholesalers in Hospital segment – level of concentration is much less.

Top 5 companies make 53% of hospital market From retail wholesalers BaDM and Alba are either strong as in retail sales Table 5. Leading wholesalers in hospital market 2013

Source: SMD Hospital Wholesalers Report

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Main trend in retail pharmaceutical chains – kiosks left the market

Number of point of sales decreased to level of 2002. Dynamic of licensed point of sales in Ukraine

YY 2002 – 2013. Total number of point of sales decrease due to the fact that kiosks were closed.

Total number of point of sales according to licenses 20,5 K -> 15,3K pharmacies and 4,2K points.

Figure 6. Dynamics of licensed point of sales in Ukraine YY 2002 - 2013

Source: State Drug Authority

Main trends for retail chains: ongoing concentration, “nationalization”, competition becomes stronger. Table 6. Retail chains and their market shares.

Source: SMD Retail Pharmacy Chain report

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7.5 Background for forecast Potential constrains •Political risks, threat of military option to resolve the conflict. •Growth of currency exchange rate and risk of hryvna devaluation. •Ongoing economic recession, loss of purchasing power by population. Potential drivers •The National Bank of Ukraine moved to a flexible exchange rate, according to recommendations of IMF. •International monetary support – tranches of the credit from Russia; potential credit line from IMF. •Ongoing reimbursement in form of co-payment within pilot projects (hypertension, oral anti-diabetic products).

7.6 Dynamic of pharmaceutical market in values Dynamic of market in values (USD) will slow down in the short term prospective and will come back

to higher growth with implementation of reimbursement.

Current economic and political situation in the country gives no hope for a speedy recovery in the

current year. Given the high level of inertia in demand for medicines, we expect a positive rate in

pharmaceutical market dynamic in 2014 at the level of 6 - 8% in values (USD).

Figure 7. Dynamic of market in values (USD)

Source: SMD Statistical data

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7.7 Other statistical data in detail

Table 7. TOP-50 corporations: local vs foreign

UAH October 2013 YTD - October 2013 MAT – October 2013

MS, % MS (+/-), %

PPG , % EI MS, %

MS (+/-), %

PPG , %

EI MS, % MS (+/-), %

PPG , %

EI

Total market 100,00% 0,00% 4,65% 100 100% 0,00% 10,62% 100 100% 0,00% 9,69% 100

TOP-50* 75,70% 1,24% 6,39% 102 75% 0,71% 11,67% 101 75% 0,70% 10,72% 101

Local (14) 22,50% 2,05% 15,11% 110 22% 0,42% 12,81% 102 21% 0,27% 11,06% 101

Foreign (36) 53,20% -0,81% 3,09% 99 54% 0,29% 11,22% 101 54% 0,43% 10,58% 101

UNITS October 2013 YTD - October 2013 MAT – October 2013

MS, % MS (+/-), %

PPG , % EI MS, %

MS (+/-), %

PPG , %

EI MS, % MS (+/-), %

PPG , %

EI

Total market 100,00% 0% -6,42% 100 100% 0% -1,57% 100 100% 0,00% -2,94% 100

TOP-50* 82,70% 1% -5,26% 101 83% 0% -1,57% 100 83% 0,07% -2,86% 100

Local (25) 59,20% 2% -2,77% 104 59% 0% -1,61% 100 59% -0,12% -3,14% 100

Foreign (25) 23,50% -1,21% -11,02% 95 24% 0,03% -1,45% 100 24% 0,19% -2,14% 101

Source: SMD Statistical Data

Figure 8. Market shares of merchandise categories, money spent, 2013

Source: SMD Statistical Data

82%

6%

3% 4%

5%

Medicine

Bioactice substance

Cosmetics

Personal hygiene goods

Other medical goods

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Figure 9. Market shares of merchandise categories, units sold, 2013

Source: SMD Statistical Data

Figure 10. Increment rates of purchase amounts, money spent

Source: SMD Statistical Data

63% 5% 1%

3%

28% Medicine

Bioactice substance

Cosmetics

Personal hygiene goods

Other medical goods

12,4%

32,0%

21,1%

11,6%

6,0%

9,3%

16,8%

7,3% 9,3%

6,9%

0,0%

5,0%

10,0%

15,0%

20,0%

25,0%

30,0%

35,0%

Medicine Bioactive substance

Cosmetics Personal hygiene goods

Other medical goods

2012

2013

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Figure 11. Increment rates of purchase amounts, units sold

Source: SMD Statistical Data

Figure 12. Bioactive substances (TOP-10), 2013

Source: SMD Statistical Data

-3,4%

15,0%

3,8%

-3,7% -6,2%

-2,4%

3,4% 1,5%

0,4% -0,7%

-10,0%

-5,0%

0,0%

5,0%

10,0%

15,0%

20,0%

Medicine Bioactive substance

Cosmetics Personal hygiene goods

Other medical goods

2012

2013

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Figure 13. Cosmetics and personal hygiene goods (TOP -10), 2013

Source: SMD Statistical Data

Figure 14. Other medical goods (TOP -10), 2013

Source: SMD Statistical Data

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Figure 15. Drugstore purchase volumes of medicine (thousands USD)

Source: SMD Statistical Data

Figure 16. Market of medicines (money spent)

Source: SMD Statistical Data

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Figure 17. Drugstore purchase volumes of medicines (units)

Source: SMD Statistical Data

Figure 18. Market of medicines (units sold)

Source: SMD Statistical Data

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Figure 19. Market share (money spent by customers)

Source: SMD Statistical Data

Figure 20. Market of medicines, correlation between price and market share (units sold)

Source: SMD Statistical Data

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Figure 21. Market for medicines, correlation between price and units sold

Source: SMD Statistical Data

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8. LIST OF TABLES AND FIGURES

PAGE

Table 1. FY 2013 results by CTYs 7 Table 2. Top 20 corporations in retail segment 10 Table 3. Example from Statins’ life 11 Table 4. Top 20 leading products – generations change on the market 11 Table 5. Leading wholesalers in hospital market 2013 12 Table 6. Retail chains and their market shares 13 Table 7. TOP-50 corporations: local vs foreign 15 Figure 1. Market shares of CTYs in values and in units. 7 Figure 2. Per capita spending in values (USD) and units in CIS, FY2013 results 8 Figure 3. Ukraine: Market Trends in Values (USD) 9 Figure 4. Ukraine being the 2nd biggest market in CIS, remains mainly out-of-pocket 9 Figure 5. Top-6 retail wholesalers’ market shares in 2012 and 2013 12 Figure 6. Dynamics of licensed point of sales in Ukraine YY 2002 - 2013 13 Figure 7. Dynamic of market in values (USD) 14 Figure 8. Market shares of merchandise categories, money spent, 2013 15 Figure 9. Market shares of merchandise categories, units sold, 2013 16 Figure 10. Increment rates of purchase amounts, money spent 16 Figure 11. Increment rates of purchase amounts, units sold 17 Figure 12. Bioactive substances (TOP-10), 2013 17 Figure 13. Cosmetics and personal hygiene goods (TOP -10), 2013 18 Figure 14. Other medical goods (TOP -10), 2013 18 Figure 15. Drugstore purchase volumes of medicine (thousands USD) 19 Figure 16. Market of medicines (money spent) 19 Figure 17. Drugstore purchase volumes of medicines (units) 20 Figure 18. Market of medicines (units sold) 20 Figure 19. Market share (money spent by customers) 21 Figure 20. Market of medicines, correlation between price and market share (units sold) 21 Figure 21. Market for medicines, correlation between price and units sold 22

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9. REFERENCES

SMD – Support in Market Development (Researches of pharmaceutical markets, business-analysis, forecasting and consulting) 3-7, Kiyanovskiy Lane, of. 219, Kiev 04053 Ukraine Tel.: +38 044 272 25 26 Fax.: +38 044 272 18 54 E-mail: office@smd.net.ua URL: http://smd.net.ua/ ARZINGER – Law firm Business Centre “Eurasia”, 75 Zhylyanska St., 5th Floor, 01032 Kyiv, Ukraine Tel.: +38 (044) 390 55 33 Fax. +38 (044) 390 55 40 Email: mail@arzinger.ua URL: www.arzinger.ua State Statistics Service of Ukraine – http://www.ukrstat.gov.ua/ Information Agency UNIAN – http://economics.unian.net Pharmacist Magazine – http://fp.com.ua