Regulatory & Marketing Consulting Services

Regulatory Bureau “Cratia”

Regulatory & Marketing Consulting Services

Address: 1/22 Chejskaya str.,

01001, Kiev, UKRAINE

Tel.: +38 044 332 42 94

Fax: +38 044 332 42 94

PHARMACEUTICAL RETAIL MARKET OF UKRAINE IN THE FIRST QUARTER OF 2005*

According to the Retail Audit of Drugs in UkraineТМ data, the pharmaceutical retail market value increased by 6% compared to Q1 2004 and accounted for $224.6 Mio. in pharmacy purchasing prices. The average retail mark-up amounted to 31%. The largest manufacturers in terms of sales value in Ukraine are still Berlin-Chemie / Menarini Pharma and Aventis Intercontinental (Table 1). Most of the top 20 companies increased their shares

compared to Q1 2004. Two new companies entered the list in Q1 2005, Sagmel Inc. and Ratiopharm. Due to a 0.4 p.p. share decrease, Sanofi-Synthelabo dropped from 4th to 7th position. Genom Biotech, which occupied 15th place in Q1 2004, decreased its market share by 0.3 p.p. and left the top 20 list. The cumulative share of the 20 largest manufacturers accounted for 42% of the total retail sales in Ukraine in Q1 2005.

Table 1. Top 20 manufacturers by sales value

Rank / Manufacturer** / Share in pharmacy sales, %
Q1
2005 / Q1
2004 / Q1
2005 / Q1
2004
1 / 1 / Berlin-Chemie / Menarini Pharma G.m.b.H. / 3.9 / 3.7
2 / 2 / Aventis Intercontinental / 3.4 / 3.3
3 / 5 / KRKA D.D. / 3.2 / 2.5
4 / 3 / Darnica / 3.2 / 2.6
5 / 6 / Farmak / 2.5 / 2.2
6 / 9 / GlaxoSmithKline / 2.3 / 1.9
7 / 4 / Sanofi-Synthelabo / 2.2 / 2.6
8 / 8 / Gedeon Richter Ltd. / 2.1 / 2.0
9 / 7 / Borschagovskiy plant / 2.1 / 2.1
10 / 13 / Kievmedpreparat / 1.9 / 1.6
11 / 12 / Biologische Heilmittel Heel GmbH / 1.7 / 1.6
12 / 11 / Boehringer Ingelheim Pharma GesmbH / 1.7 / 1.7
13 / 10 / Zdorovye / 1.7 / 1.7
14 / 16 / Pfizer International Inc. / 1.6 / 1.4
15 / 14 / Lek d.d. / 1.6 / 1.5
16 / 21 / Sagmel Inc. / 1.6 / 1.2
17 / 18 / Richard Bittner GmbH / 1.4 / 1.3
18 / 20 / Balkanpharma / 1.4 / 1.2
19 / 22 / Ratiopharm / 1.4 / 1.1
20 / 17 / Bristol - Myers Squibb / 1.3 / 1.3
Total top 20 / 41.9 / 38.5

**AIPM members are in bold

The top 20 manufacturers represented 12% of the total pharmacy sales in Ukraine in Q1 2005 (Table 2). The share of Essentiale N, which is still the leader of the ranking, almost twice exceeds the share of the second retail market leader, Actovegin. There are five newcomers in the top 20 brands in Q1 2005. Cefazolin decreased its share in total retail sales by 0.5 p.p. and dropped from 3rd to 14th place. The ranking positions that significantly decreased during the

analyzed period were of Ambroxol (moved from 13th to 21st place), Analgin (from 14th to 32nd place), Ketanov (from 16th to 28th place) and Piracetam (from 20th to 40th place).

The cumulative share of the 10 leading INNs accounted for 11% of the total retail sales in Ukraine in Q1 2005 (Table 3). Generally, the structure of the top 10 list demonstrated relative stability. Multivitamine+multimineral is still the leader of the ranking with 0.1 p.p. of share increase. Sildenafil also increased its share in the total retail sales (+0.3 p.p.) and moved from 10th to 4th place. On the other hand, cefazolin, which occupied 8th place last year, decreased

its share by 0.4 p.p. and dropped to 30th place in the ranking.

The cumulative share of the 10 leading ATC groups is about 43% of the total retail sales in Ukraine in Q1 2005 (Table 4). The first five leaders kept their positions compared to Q1 2004. Agents acting on the Renin-Angiotensin System (11th place in Q1 2004) increased its share by 0.3 p.p. and entered the top 10 list in Q1 2005. The Psycholeptics group, which occupied 9th place in Q1 2004, decreased its share in the total retail sales by 0.3 p.p. and left the top 10 list.

Table 2. Top 20 drugs by sales value

Rank / Trade name / Share in pharmacy sales, %
Q1
2005 / Q1
2004 / Q1
2005 / Q1
2004
1 / 1 / Essentiale N / 1.6 / 1.5
2 / 2 / Actovegin / 0.9 / 0.9
3 / 5 / Mildronate / 0.8 / 0.7
4 / 6 / Ceftriaxon / 0.8 / 0.7
5 / 4 / No-spa / 0.8 / 0.8
6 / 9 / Festal / 0.7 / 0.6
7 / 12 / Viagra / 0.7 / 0.5
8 / 11 / Lasolvan / 0.6 / 0.5
9 / 7 / Mezym forte / 0.5 / 0.7
10 / 10 / Captopress / 0.5 / 0.5
11 / 41 / Prostamol Uno / 0.5 / 0.3
12 / 17 / Fervex / 0.5 / 0.4
13 / 8 / Sodium Chloride / 0.5 / 0.6
14 / 3 / Cefazoline / 0.4 / 0.9
15 / 15 / Doctor Mom / 0.4 / 0.4
16 / 21 / Fezam / 0.4 / 0.4
17 / 19 / Naphthyzin solution / 0.4 / 0.4
18 / 31 / Duovit / 0.4 / 0.3
19 / 25 / Ranitidin / 0.4 / 0.4
20 / 38 / Macropen / 0.4 / 0.3
Total top 20 / 11.8 / 11.8

Table 3. Top 10 INNs by sales value

Rank / INN / Share in pharmacy sales, %
Q1
2005 / Q1
2004 / Q1
2005 / Q1
2004
1 / 1 / Multivitamine+Multimineral / 2.0 / 1.9
2 / 2 / Diclofenac / 1.2 / 1.2
3 / 4 / Ambroxol / 1.1 / 1.1
4 / 10 / Sildenafil / 1.1 / 0.8
5 / 3 / Pancreatin / 1.0 / 1.1
6 / 7 / Enalapril / 1.0 / 0.9
7 / 6 / Multivitamine / 0.9 / 0.9
8 / 5 / Ceftriaxone / 0.9 / 0.9
9 / 9 / Drotaverine / 0.9 / 0.9
10 / 11 / Trimethylhydrazinium propionate / 0.8 / 0.7
Total top 10 / 10.9 / 10.4

Table 4. Top 10 ATC groups by sales value

Rank / ATC
code / ATC group / Share in pharmacy sales, %
Q1
2005 / Q1
2004 / Q1
2005 / Q1
2004
1 / 1 / J01 / Antibacterials for Systemic Use / 8.3 / 9.1
2 / 2 / N02 / Analgesics / 6.4 / 6.4
3 / 3 / A11 / Vitamins / 5.6 / 5.5
4 / 4 / R05 / Cough and Cold Preparations / 4.4 / 3.8
5 / 5 / A05 / Bile and Liver Therapy / 3.8 / 3.7
6 / 7 / M01 / Antiinflammatory and Antirheumatic Products / 3.0 / 3.0
7 / 8 / R01 / Nasal Preparations / 3.0 / 2.9
8 / 6 / C01 / Cardiac Therapy / 2.8 / 3.1
9 / 11 / C09 / Agents Acting on the Renin-Angiotensin System / 2.7 / 2.4
10 / 10 / N06 / Psychoanaleptics / 2.5 / 2.5
Total top 10 / 42.5 / 42.4

Conclusion. In Q1 2005 the Ukrainian pharmaceutical retail market accounted for $293 Mio. in retail prices. Rankings of the leading manufacturers and brands demonstrated significant changes compared to Q1 2004. At the same time, the INNs and ATC groups’ leaders were relatively stable. Five domestic manufacturers entered the top 20 manufacturers’ list; four of them are in the top 10 list by sales value.

* based on the data of RMBC (Remedium Group), http://www.rmbc.ru

Regulatory Bureau “Cratia”

Tel.: +38044332 42 94