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 2017)

Wednesday, May 31, 2017

At the beginning of 2017, the Russian wholesale trade of pharmaceutical drugs witnessed a lot various transactions. The investors were mainly distributors, and they usually invested in the production segment, and not only in the production of pharmaceutical drugs. These companies are three, and there are not only the top five companies, but also smaller companies. On the one hand, this is an obvious consequence of the rather low level of profitability of the core activities of wholesale companies and the desire to reverse this trend through business diversification. On the other hand, this is a consequence of the accumulation of a certain amount of free resources and, at the same time, the availability of assets on the market. In the post-crisis conditions, these assets are sold at quite attractive prices.

However, the wholesalers themselves became objects of investment. In particular, the companies R-Pharm and Mitsui (Japan) closed a deal in May, which can be called unprecedented for Russian history both in terms of the value of the Russian company and in terms of the future strategy for the development of common business. There were, of course, less prominent examples of the acquisition of distribution companies, although they were mostly formal in nature and pursued the goal of streamlining the structure of the existing business.

Not all Russian wholesalers are participating in the investment boom. The current situation with the return of accounts receivable is far from normal, and it is typical not only for the retail market. This year, public procurement companies have also started to face this problem. For certain wholesalers, the problem creates serious difficulties, in particular, Rosta was forced to mortgage the production equipment of its plant Raduga Production as collateral for its debt to the company Nizhpharm (STADA Group) in March.

Read more about rating of Russian pharmaceutical Distributors(2016 performance) here:

See the detailed rating in the newspaper Farmatsevtichesky Vestnik (No. 19, 06/06/2017).

Tab 1. Top 15 pharmaceutical distributors with the largest market share of direct shipments of drugs (including preferential shipments), in monetary terms (Q1 2017)