Pharmaceutical Ukraine

Given the strong reliance on imports, the pharmaceuticals market faced a decline in value and volume in 2016 at 14.6% and 1.6% negative CAGRs, respectively. This was mainly due to the currency depreciation, which impacted the purchasing power. Two main regulatory bodies operate under the Ministry of Health (i) the State Expert Center and the State Administration of Ukraine on Medicinal Products (SAUMP). (ii) The State Expert Center is responsible for the registration and quality control of pharmaceuticals, research, and monitoring of drug reactions, listing OTC drugs which are then submitted for approval by MOH and authorizing the imports of unregistered pharmaceuticals. It also advises on the content of the National Drug Formulary. (a) The SAUMP is responsible for monitoring the quality of drugs in the market through its network of 27 laboratories in the country, all complying with ISO 17025. (b) In 2018, only 5% of the population have a health insurance policy that covers the cost of all or part of needed drugs. However, a reimbursement policy was introduced on April 1, 2017, due to the state policy for treating certain cardiovascular diseases, bronchial asthma, and type II diabetes mellitus. This measure is expected to increase consumption patterns of all drugs included in the reimbursement system to create incentives for the patient to move from self-treatment to regular follow-up by a doctor and to increase the availability of drugs that are an integral and permanent part of this treatment. (c) Share of generics sold in public hospitals is 70% and 98% in value and volume, respectively.

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