US Reports Strong Growth in Ukraine Drug Market

According to US government estimates, the Ukraine's drug market grew 15.5% in 2004, reaching some US$1.06bn. Imports into Ukraine reportedly grew to US$659mn in 2004, equal to 62% of the market, with the US accounting for US$31.9mn. Germany and India were the largest consumers of Ukrainian drug last year.

The study, carried out by the US Department of Commerce, also notes that most multinationals are present in some form in the Ukrainian market, while products manufactured by regional generics makers have strong uptake rates due to their existence during the Soviet era. The report also notes that the country's domestic sector comprises 58 manufacturers and about 22,000 retail outlets.

Nevertheless, the assessment appears somewhat optimistic, in view of the fact that local production is dominated by cheap generics, which benefit from a still-favourable regulatory environment. Indeed, the sector accounts for a greater share of the market by value than branded imports, as until last year average incomes have not risen at a similar pace to those in comparable countries such as Russia. Clearly, however, it should be remembered that the Ukrainian sector's prospects are bright, with GDP growth forecast at over 8% this year.