Purpose. The aim of the work is to present the results of the comprehensive analysis of the determinants of the development of the pharmaceutical market of Ukraine in terms of assessment of the levels of concentration of the pharmaceutical market.
Design/methodology/approach. To achieve the objective of the research a combination of scientific methods is used: systematic – to highlight the conceptual basis of the functioning of the Ukrainian pharmaceutical market; problem-oriented - for identification the main problems of economic development of the pharmaceutical market and identification influence factors on it; statistical analysis – for analysis of dynamics of economic development of the pharmaceutical market and its separate segments; index method – for estimation of the levels of concentration of ukrainian market of pharmaceutical products. Quantitative assessment of factors and trends of the pharmaceutical market development is supplemented by qualitative assessment of the subject of research.
Findings. Assessment of the market concentration of pharmaceutical companies is made: in the period of 2019-2020, the Herfindahl–Hirschman index was 61,7257 and 54,7828 respectively; the market concentration index was 19,81 and 18,14 respectively, which indicates a strong competition in the market. Linda index showed that «Farmak JSC», «Arterium Corporation», «Darnitsa JSC» formed a “hard” oligopolia and formed a “core of the market”. Gini index (0,28 and 0,29, respectively) showed a slight level of income unevenness among enterprises.
The main types of competitive struggle on the pharmaceutical market are identified, namely:
- significant competition between Ukrainian and foreign pharmaceutical companies-manufacturers, as well as world leaders of pharmaceutical industry, which can potentially enter the given market, active development of enterprises of adjacent and other branches, development strategies of which envisage entering the market of pharmaceutical products;
- pressure from substitution products, as well as competition from original and generic drugs; biologically active additives, etc.;
- competition of logistics chains of pharmaceutical supplies; competitive struggle for domination in hospital/ pharmacy segments and representation of own interests in distribution channels of pharmaceutical products;
- competition at the level of wholesale and retail trade, which expand and complicate competition in the market;
- pressure from consumers, who, due to low access barriers to information, became more aware of the characteristics of pharmaceuticals, and are able to appeal to a wide range of actors in the medical services market.
It is concluded that in the sectors of drug production and their wholesale and retail trade, further consolidation of business and withdrawal from the market of weak contractors due to their low solvency, limited access to resources and other factors, forming a favorable institutional environment for the active use of cluster technologies and models in the pharmaceutical sector should be expected.
Practical implications.
Originality/value. In this article are provided data and it`s analysis that show that there are grounds for increasing competition on target markets of pharmaceuticals, which produce intensification of aggressive marketing measures by individual market participants and require increased attention to logistics, innovation and other types of activity of enterprises.
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