Prospective development of pharmaceutical trade in Kazakhstan

As some experts claim the pharmaceutical market - one from most highly profitable and fast-growing sectors economy, as on profitability pharmaceutics on 3-4 place among all branches business. Annually increases not only number population but also scientifically-technical progress, level morbidity (74 thousand 398 cases on 100 thousand people) and, as consequence consumption of medical drugs.This confirms observed on world market stable growth volumes sales medicines, which is about 6-11% in year, but net profit reaches 18% from overall incomein pharmaceutical industry this in year. However,Kazakhstan pharmaceutical market formed middle of 90х. It is important to note that every Kazakh citizen is consumer of pharmaceutical market, and today’s statistics shows about 17 million. Kazakhstan was first having the pharmacopoeia including CIS county in 2010 also was cooperating with Great Britain’s pharmacopoeia. Pharmacopoeia allows ensure with high quality of drugs are registered in our country.

However competitive fight on pharmaceutical market continues today not around prices on drugs, but also achievements scientifically-technical progress in pharmaceutical industry. In present time high pharmaceutical company developing new achievements of genetic and cellular engineering, biotechnology, this allow to company develop and produce drugs with considerably improved pharmacokinetic substance, good tolerance and high stability.

Compulsory note, what treatment medicinal means on market is carried out on three basic levels: level manufacturers medicinal means, level distributors (wholesale implementation), level pharmacies (retail sales to final consumer).On each level has these different type of competition.

Kazakhstan market presents drugs almost 300 companies-manufacturers most various с county. Medicines imports has share order 90% in value expression, 79% in original expression. Despite other countries there are five countries importer provided - Germany, Russia, France, India, Italy. On them account for 42% to all market Republic of Kazakhstan in money expending.

Created association foreign firms-manufacturers with the aim to develop common principles work, protection common interests companies-importers. There is top-10 companies-manufacturers, which has share 35% in USA (on results 2013), which are shows oligopolisticcompetition.

Association of distributors of pharmaceutical products to the RK market. At this level, there is also oligopolistic competition.Major companies are less than expected therefore here are the top 5 -Medservice KFK LLP, Stopharm, Emiti, Medicus Center, Amanat.Distributors very often “divide” market segments, regions and try to keep prices in the same range, without reducing or overestimating them relative to each other.

At the third level (the level of points of retail sale of drugs to the public) there is a tendency to create networks of pharmacies or “subsidiaries” of Distributors, which makes it possible to create certain values for their customers.The pharmaceutical market of Kazakhstan is one of the most developed in the countries.

The pharmaceutical market of Kazakhstan consists of two large segments - retail sales and the public procurement sector (which provides drug patients in hospitals and at the outpatient level). The retail segment amounted to more than 1.5 billion US dollars (which amounted to 63%) and more than 0.5 billion packages (which accounted for 83% of the entire market as a whole).

The main disadvantage of the Kazakhstan pharmaceutical market is its high import orientation.The existing rich potential for the development of the domestic pharmaceutical industry is weakly used.On market pharmaceutical industry in Kazakhstan work more 80 manufacturers. At this more 90% all produced in RK medicines are provided by 7 large plants. All generic drugs, the production of which is carried out according to old technologies. The old medicines are replaced by new, effective and safe products created using modern technologies and all of them are imported, but not manufactured in the RK.On recommendations world organization health , strategic safety country is provided by at 20% domestic pharmaceutical production on market.The state of Kazakhstan actively participates in the regulation of the pharmaceutical market.The state of Kazakhstan actively participates in the regulation of the pharmaceutical market. This process includes monitoring the process of registering, certifying and selling imported and manufactured medicines and medical products in the country, monitoring the advertising activity of pharmaceutical companies' representative offices, monitoring the procurement of medicines for public hospitals according to the forms, which are annually updated to reflect all more modern therapies and the latest drugs.Since 2009, the work of the single supplier of RK-Samruk Kazyna Pharmacy began, which has reduced the number of intermediaries, and accordingly, reduced the price of drugs for the purchase of. Besides, with 2010 year is held regulation prices state, what led to lower cost still on 30%! Is held support domestic manufacturer and in purchases is almost 70% in originalexpenses.We are already have the experience of merging domestic and foreign manufacturers, which is mutually beneficial for both parties.For Kazakhstan citizen , the benefit is that the list of drugs manufactured by the domestic manufacturer is expanding, which means that there will be more representation of Kazakhstan drugs in procurement.But for foreign partners - this possibility get status domestic manufacturer and obtaining all benefits, but respectively and profit.Chimpharm JSC (Shymkent), carrying out joint production with the largest pharmaceutical company Polpharma, after the implementation of international GMP standards, Polpharma will transfer the production of its drugs sold in Kazakhstan and other countries of the region to the factory in Shymkent. At the same time, the company gained access to over 300 products currently in the Polpharma group's portfolio, as well as 400 new products under development.

In general, in the pharmaceutical market of the Republic of Kazakhstan, the share of original drugs is only 9% in packages and 34% in US dollars.At the same time, there is a difference in the purchasing segment - in terms of value, the share of original drugs here is 43%, that is, the state buys the unique most expensive drugs, especially for the treatment of oncological diseases.At the same time, the share of original drugs is decreasing from year to year, which indicates that many companies are trying to withdraw profitable drugs and get their profit.

Following that competition on pharmaceutical market becomes more aggressive.Government agencies are increasing their influence on the pharmaceutical market. Thus, a single supplier system, SamrukKazyna Pharmacy, has been introduced, domestic manufacturers are supported, drug prices are regulated, drug registration rules are tightened, and the industry is switching to standards of good practice (GXP).Entrepreneurs, in order to survive, will be forced to reduce their costs and optimize their units.In this regard, it is possible the development will receive the most powerful and large pharmacy chains, due to the absorption of small networks and forced to close pharmacies. The priority will be the direct links of pharmacy chains with manufacturers of pharmaceutical products. Competition between market participants will increase, the number of distributors will decrease and the range of additional services in pharmacy organizations will expand. The Internet drug trade will be increasingly developed. The benchmark for the industry was the instructions of the head of state aimed at developing the domestic pharmaceutical market and analyzing the effectiveness of budget spending on drug supply and medical equipment. Changes have been made to the general procurement procedure aimed at increasing the share of products purchased directly from the manufacturer, without intermediaries.

Also introduces new rules for the formation of lists of procurement of medicines. The procedure involves a comprehensive assessment that allows you to compare different drugs and medical devices in terms of clinical and economic efficiency.

Reference pricing norms are introduced. According to the new rules, each applicant will provide data on the price of the manufacturing plant when selling to other countries. In Kazakhstan, the purchase price will be recorded not higher than the average price of reference countries.

As for the upcoming changes for the future a draft law on the regulation of prices for medicines was developed to implement the message of the head of state “The Third Modernization”. Price regulation will be introduced from October 1, 2019.

To support DPM (Domestic product manufacturers) introduced the concept of contract manufacturing of medicines and medical devices. Following to a foreign company manufactures products on a contract basis at the production facilities of the domestic agent. Domestic partner ensures compliance with the requirements of good manufacturing practice (GMP).

Index (List of used literature):

  1. Sustainable development strategy of the agroindustrial complex - food security / V.G. Gusakov [et al.]; by ed. V.G. Gusakova; Institute of ek-ki. - Minsk: Belarusian science, 2008. - 514 p.
  2. Shertaeva KD, Erkebaeva AE, Abduvalieva M., Swot analysis of the competitive environment of the pharmaceutical market of Kazakhstan. April 2017, Shymkent, Republic of Kazakhstan. Pp.72-74
  3. Lifits, I.M. Formation and evaluation of the competitiveness of goods and services / I.M. Lifits - M .: Yurayt-Izdat. 2004. - 335 p.
  4. S. Myasnikovich, M.V. Innovative development - the imperative of the formation of a new economy in the Republic of Belarus / M. V. Myasnikovich // Problems of management. - 2008. - №2. - P. 4 - 11.
Year: 2018
City: Shymkent
Category: Medicine