Retail Pharmaceutical Market Records Increase in Deficiencies, Shortages Mainly Among Imported Drugs – ANC

In recent times, the retail pharmaceutical market in Ukraine has observed a significant rise in deficiencies, primarily affecting imported medications. This information comes from analysts at the pharmacy network ANC, who underline that although the situation raises concerns, it is not deemed critical.

According to data from ANC, imported medications are generally available in pharmacy networks, including their own. However, there is indeed a noticeable increase in deficiencies, which is limited in scope. As noted by ANC, the deficiency rate stands at approximately 3.7% of the total assortment, which corresponds to around 240 stock-keeping units (SKU). More than 80% of these deficient items are imported drugs, while the shortage among Ukrainian medications is significantly lower.

ANC emphasized that this is not a widespread absence of medications but rather pertains to specific items. Most popular imported drugs, including seasonal remedies such as those for symptoms of acute respiratory viral infections (ARVI) and influenza, remain available. Meanwhile, about 20% of the deficient medications, which amounts to roughly 45 SKU, lack direct analogs, predominantly being imported products.

Commenting on the measures pharmacy networks are taking to address the shortages, ANC indicated that they are working in several directions. Specifically, the network is identifying alternative medications, as in most cases, the absent drugs can be replaced with analogs based on active ingredients or therapeutic effects. Pharmacists in pharmacies assist in finding substitutes for patients.

Furthermore, ANC is actively collaborating with suppliers and manufacturers, who are placing additional production orders, optimizing supply schedules, and accelerating logistics. The network also employs flexible assortment management, promptly redistributing stocks and adjusting purchases to minimize the absence of critical items.

However, ANC analysts cannot accurately predict the timeline for overcoming the shortages. As stated by the network, it is challenging to specify exact timelines since the situation depends on external factors such as the pace of imports, production, and logistics. Nevertheless, there is positive momentum: a gradual recovery is already underway, with some positions (about 38 SKU) expected to be restored by April. Overall, the market, according to ANC representatives, is moving towards stabilization.

Thus, the situation does not indicate a long-term shortage but rather temporary disruptions in specific positions that are gradually being resolved. This information is also corroborated by member companies of the Health Committee of the European Business Association (EBA), which reported shortages of imported medications in retail. According to EBA experts, this reflects a systemic issue of drug shortages in the market.

In particular, 76% of companies within the EBA Health Committee reported shortages of imported medications. According to estimates from these companies, instances of shortages or risks of supply interruptions cover a wide range of medications, including cardiovascular, ophthalmological, neurological, oncological drugs, as well as biological therapies for patients with autoimmune diseases.

Among the primary reasons for the shortages, EBA estimates highlight two factors: prolonged and unpredictable procedures for obtaining a GMP compliance certificate in Ukraine, and the loss of stock due to missile strikes on warehouse infrastructure, as indicated by 69% of respondents. Additionally, 56% of committee member companies pointed to systemic issues with the application of the National Price Catalog, complicating the planning and import of medications.

Among other challenges faced by EBA members are low stock levels at distributors (25%), which may also result from the loss of goods due to strikes, production or supply restrictions from manufacturers (19%), customs delays (13%), and other factors (13%).