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 (2016)

Monday, March 13, 2017

Just some 2-3 years ago, the wholesale trade of pharmaceuticals seemed long established. The leaders fought for tenths of a percent, slowly diversified, and if someone left the race, it was due to understandable and even expected reasons. However, the financial crisis changed absolutely everything.

The top companies are rapidly changing, in particular, in the middle of 2016, the first place was returned to the company Protek, while Pulse did the impossible, breaking into the top three within a few years. Over the past 2 years, the share of certain companies often increased by 2-3% ever year. As a consequence, the wholesale segment has grown significantly. By 2016, fifteen pharmaceutical distributors have got control of 81% of the market, and the share of the largest companies has grown by 7.4%.

While not unique, the situation is quite impactful for the Russian pharmaceutical market. Only those who understand the administrative procedures accompanying the process of introducing pharmaceuticals to the Russian market can initiate such activity. In a sense, this is advanced legal work. Usually such battles are typical for very mature markets, until recently Russian companies acted as observers at best here.

The rhetoric of competition has also changed. Price wars are starting and ending, and active diversification processes have been resumed. Wholesalers, who until recently did not even think about their own retail, such as SIA International, are trying retailing. The company has announced plans, the implementation of which will inevitably make it one of the top Russian pharmaceutical companies and will definitely affect the positions of the wholesale division.

However, qualitative development in 2016 was made in other ways, in particular, new warehouses were built, while old ones were modernized, bought and sold. There were a lot of transactions, including those in which international businesses participated.

See the detailed rating in the newspaper Farmatsevtichesky Vestnik (No. 9, 03/21/2017).

Tab 1. Tab 1. Top 15 pharmaceutical distributors with the largest market share of direct shipments of drugs (including preferential shipments), in monetary terms (2016)