Pharmacy chains activity analysis

Pharmacy chains activity analysis

Russian pharmaceuticals retail chain segment evaluation, both on the level of the state and in particular regions. Pharmacy chains development forecast


Product sales and separate market development forecast, based on unique mathematical models

Business and marketing plan development

Development of detailed business-plans, required to evaluate the reasonability of project start

Search of partners for contract production in Russia

Potential partners search and evaluation, based on their technical opportunities, appropriate experience, and reputation

Monitoring of import substitution

assessment of the main trends of import substitution policies and localization processes in the pharmaceutical market in Russia, the key beneficiaries and companies at risk

Rating of Russian Pharmaceutical Distributors (Q1 2018)

Friday, June 8, 2018

At the beginning of 2018, the Russian pharmaceutical market confidently stepped over the uncertain period of stagnation and then started to fall. If earlier it could happen only in certain sectors of the market, the retail could still improve the dynamics. Now the retail is in danger, which is about 70% of the Russian pharmaceutical market, so that the absolute majority of participants in the market will feel the consequences.

There are already enough problems in the industry: the retail has accumulated significant debts, with a high proportion of non-repayments; the so-called pseudo-distribution. In addition, the retail is actively consolidating, which results in a more impudent behavior towards suppliers, in particular, demand for longer deferred payments.

Wholesalers are sure to react, and now the atmosphere in the industry is so tense that it is not just about demanding additional guarantees for the collection of receivables from pharmacies (insurance or bank guarantees), but also about measures to stop payments to suppliers (manufacturing companies) if the threshold volume of effluents for specific products is reached. The manufactures received this unambiguous "feedback", so now the absolute majority of larger companies, on the one hand, reduced the volumes of goods receipt to the market, having realized that otherwise this tail formed on the market will no longer resolve, on the other, they have become more accommodating with distributors while discussing sales plans.

Finally, we saw a wave of the so-called black PR, aimed not just against one particular company, but also against a specific person – the main owner of the company R-Pharm, which in its own way is also impactful. The quality of the campaign is very clumsy, and there is little non-biased information about the situation. However, the very fact of such activity makes us think about the existence of a global confrontation between the giants of the Russian public procurement system. Moreover, some echoes of this battle are increasingly becoming public.

Read more about rating of Russian pharmaceutical Distributors(2017 performance) here:

Tab 1. Top 15 pharmaceutical distributors with the largest market share of direct shipments of drugs (including preferential shipments), in monetary terms (Q1 2018)