The domestic pharmaceutical sector is slowly changing form and growing. Privatisation and consolidation of once state owned industries is a slow but positive step in the building of this industry. At the present time there are fifty eight companies manufacturing drugs in Ukraine. Most of these produce lower-priced products, such as generic drugs and vitamins. Some of the large companies manufacturing these medical products are Darnytsia, Kyivmedpreparat, Pharmak and Halychpharm. Two of the countries giants in the pharmaceutical industry, Kyivmedpreparat and Halychpharm have got the Ukraine government’s approval to merge and form Arterium Corp which will be involved in the research, marketing and distribution of new medical products.

Despite this, the pharmaceuticals imported into the country accounted for 62 per cent of the Ukrainian drugs market. Of these 19.7 per cent of drugs were imported from Germany, 14.7 per cent from India, 9.5 per cent from France and 3 per cent from USA. It has also been observed that pharmaceutical companies from Eastern Europe hold a sway in Ukraine. This is possibly because both the patients and the doctors are familiar with the drugs, which have been present in the market from the time before its dissolution from the Soviet Union. As a result of their long-term presence in the Ukrainian market, they command the loyalty of the consumers.

According to BISNIS, most multinational pharmaceutical manufacturers who play a role in the Ukrainian market are present with their own respective representative offices or in a few cases through the local distributors.

Although, in financial terms, India ranks as the second largest exporter of pharmaceutical products after Germany which ranks first, its pharmaceutical exports are the largest in volume. Thirty per cent of Indian exports to Ukraine are in the pharmaceutical sector. Representative offices of a large number of Indian companies, like Ranbaxy, Dr Reddy’s Laboratory, Sun Group etc, have been set up in Ukraine. These major pharmaceutical companies have also set up the Indian Pharmaceutical Manufacturing Association (IPMA).

Today Ukraine is one of the biggest consumer markets in Europe. It has bilateral relationships with many countries all over the world. Despite getting its independence only a little over ten years ago, it is emerging as a major player in trade and industry in Eastern Europe. Its pharmaceutical industry is in need of help at the moment and this makes it a good time for Indian pharmaceutical companies to step in.