ANALYSIS OF THE LEVEL OF CONCENTRATION OF PHARMACIES IN UKRAINE

Authors

DOI:

https://doi.org/10.11603/2312-0967.2021.2.12045

Keywords:

pharmacies, pharmacy chains, pharmacy market, concentration, competition

Abstract

The aim of the work. To analyze the level of concentration of pharmacies in Ukraine by territorial and demographic characteristics and to identify trends in the competitive conditions of retail sales of drugs.

Materials and Methods. To assess the level of concentration of pharmacies, based on the territorial location of pharmacies (by region), the method of grouping was used, which allowed to typologize administrative entities. The number of pharmacies (from the License Register for the production of medicines (in the pharmacy), wholesale and retail trade in medicines), population and area by regions of Ukraine (from the website of the State Statistics Service of Ukraine) were taken as initial indicators: the number of population per pharmacy and the number of pharmacies per 100 km2.

The graphical method was used to build a circuit on the number of pharmacies included in the groups per 10 thousand people population and 100 km2.

Results and Discussion. The analysis showed that when grouping pharmacies by demographics, more than half of the regions have a very high and high level of concentration of the pharmacy market. This means that the level of availability of pharmacies for the population in Ukraine is high, but there is extremely high competition. The grouping of pharmacies according to territorial distribution showed that about 50 % of regions of Ukraine have a low concentration of the pharmacy market per unit area, ie the physical availability of pharmacies and pharmaceutical care in them is quite low.

Conclusions. There is a certain imbalance in two groups: demographically, in more than half of the regions there is a very high concentration of Pharmacies, that is, competition in the pharmacy market is extremely high, and on a territorial basis almost half of the regions – with low Pharmacies concentration. That is, areas with predominantly rural settlements have a low level of pharmaceutical supply. This only indicates that in the pharmacy segment the decisive factor is the influence of financial factors on the organization of pharmaceutical activities and commercialization.

Author Biographies

S. G. Moroz , National University of Pharmacy of the Ministry of Health of Ukraine

PhD (Economics), Associate Professor, Associate Professor of the Department of Organization and Economics of Pharmacy

D. R. Zoidze , National University of Pharmacy of the Ministry of Health of Ukraine

PhD (Economics), Associate Professor, Associate Professor of the Department of Management and Public Administration

A. M. Lebedyn , National University of Pharmacy of the Ministry of Health of Ukraine

PhD (Pharmacy), Assistant of the Department of Organization and Economics of Pharmacy

References

Nemchenko OA. [Systematization of the experience of the pharmacy chains functioning in countries with liberal approaches to state regulation of the pharmaceutical provision of the population]. Sots farm v okhoroni zdorovia. 2015;1(2): 55-63. Ukrainian.

Yatsyshyn YaI, Korniienko OM, Horodetska IYa, Korolov MV, Hromovyk BP. [Organizational peculiarities of pharmaceutical support for the population of Ternopil oblast]. Farmats chasopys. 2020;2: 60-8. Ukrainian.

Dmytryk K. Infrastructure of the pharmacy market: the evolutionary path of consolidation of the distribution segment. Ezhenedelnyk «Apteka». 2020;48. Available from: : https://www.apteka.ua/article/575325. Ukrainian.

Bushyna NS. Development of methodological approaches to assessing the competitiveness of pharmacy organizations at the regional level. Candidate’s thesis. Kursk; 2015. 249 p. Russian.

State Service of Ukraine on Medicines and Drugs Control. [Electronic resource]. Available from: https://www.dls.gov.ua/. Ukrainian.

State Statistics Service of Ukraine. [Electronic resource]. Available from: http://www.ukrstat.gov.ua/. Ukrainian.

Derbenova YaV. [Potential to increase the competitiveness of the pharmaceutical industry of Ukraine in the national and international markets]. Problemy innovatsiino-investytsiinoho rozvytku. 2017;10: 3-7. Available from: http://nbuv.gov.ua/UJRN/Piir_2017_10_3. Ukrainian.

Panfilova HL, Bohdan NS. Analysis of organizational and economic ambushes of the functioning of the health protection system and pharmaceutical safety of the population in the Republic of Poland. Professional management in the current minds of the development of the market: materials of the 7th scientific and practical conference with international participation. 2019 November 1; Kharkiv. 2019. Ukrainian.

Horlova I. [Brief overview of the state of the pharmaceutical market of Ukraine for the I quarter of 2020 and the forecast of its development for the current year]. Farmatsevt otrasl. 2020;3(80). Available from: https://promoboz.com/journal/2020/3-80-iyun/stislij-oglyad-stanu-farmatsevtichnogo-rinku-ukrayini-za-i-kvartal-2020-r-ta-prognoz-jogo-rozvitku-na-potochnij-rik/. Ukrainian.

The Ministry of Health of Ukraine will support the bill on the restriction of pharmacy monopolies after its completion. Official website of the Ministry of Health [Electronic resource]. Available from: : https://promoboz.com/journal/2020/3-80-iyun/stislij-oglyad-stanu-farmatsevtichnogo-rinku-ukrayini-za-i-kvartal-2020-r-ta-prognoz-jogo-rozvitku-na-potochnij-rik/. Ukrainian.

Published

2021-07-14

How to Cite

Moroz , S. G., Zoidze , D. R., & Lebedyn , A. M. (2021). ANALYSIS OF THE LEVEL OF CONCENTRATION OF PHARMACIES IN UKRAINE. Pharmaceutical Review Farmacevtičnij časopis, (2), 65–72. https://doi.org/10.11603/2312-0967.2021.2.12045

Issue

Section

Organization of pharmaceutical structures’ work