Pharmaceutical market of Ukraine is mainly oriented towards a final customer and correlated with incomes of the population. Retail segment makes up 86%, hospital – 14%.

Volume of retail pharmaceutical market of Ukraine for the 3rd quarter, 2007 in value equivalent formed $ 1,8 milliard.

In the course of 2005 and especially in the 1 st quarter, 2006 the market grew with impressive speed. In 2007 the growth rate went down up to 15,2% (vs. 9 months of 2006). It far exceeds the growth rate of pharmaceutical markets of developed countries.

Volume of hospital market in the 1^st half year of 2007 made up $1, 15 milliard. The value share of domestic medications amounted to 46%, foreign – 54%. Volume share – 86 and 14% accordingly.

The biggest Ukrainian importers are Optima-Farm, Al’ba Ukraina, BaDM, VVS ltd. And Artur-K

Total market share of the 10 biggest companies comes to 17%.

Investment attractiveness of Ukrainian market is explained by impressive growth rates (on average about 30% in a year), sufficiency great volume (more than $ 2 milliard), profitability in 30-60%, big share of commercial retail segment (more than 86%).

According to the date of Concorde Capital contract trading volume on M&A in Ukraine during the following two years can reach $1-1, 5 milliard.

Generic companies from East Europe are interested in Ukrainian companies. For them extension business in Ukraine is the strategic orientation, as their main turnover is sold in the CIS countries.

For many pharmcompanies buying of Ukrainian plants is a possibility to heathen their position in Baltic and East Asia countries.

As buying objects it will be considered the market leaders, first of all “Darnitsa”, “Arterium”, “Pharmak”, and “Borschagovsky chemical-pharmaceutical plant”.

Stock promotion of pharmaceutical company “Darnitsa” was a striking example. 10% of stock was sold to foreign investors for $48 million. “Darnitsa” became the first Ukrainian pharmaceutical firm, whose floater was put at foreign markets.

The company is going to use the funds received for production modernization and convert to more expensive and perspective segment of biotechnology.

Till 2010 it is planned to form the production of antiasthmatic and biotechnological medications (genespliced insulin, cancer vaccine). It will fundamentally differentiate the product portfolio from such business rivals as “Farmak” and “Borschagovsky chemical-pharmaceutical plant”.