“Darnitsa” has significant prospects for developing export potential with an expanding supply market

Each year the export rate of the pharmaceutical company “Darnitsa” grows by approximately 30%. Currently, the company supplies its medical products to 15 countries in the EU, CIS, Middle East and East Asia. “Darnitsa” is not going to stop in this direction, as the company plans to expand the list of export destinations to the markets of South-East Asia, Latin America and Africa.

Irina Radchenko, director of the export department of pharmaceutical company “Darnitsa”, told it in the interview with “Interfax”.

In particular, “Darnitsa” is represented on the EU market in Lithuania and Poland. In these countries, the company exports medicines affecting hematopoiesis and blood, for the treatment of diseases of the cardiovascular system, antimicrobials products and vitamins.

“The share of export is about 5% of the company`s total sales. The growth rate of the export share is about 1% in annual volumes. In the five-year term, the company plans to increase the share of export to 20%,” - said Irina Radchenko.

She also stated that despite the challenges of pandemic COVID-19, “Darnitsa” managed to implement part of the plans concerning the company`s presence in foreign markets.

According to the guide “Pharmaceutical of Ukraine 2021”, published by “Darnitsa” together with the company “Top Lead”, export of medicines increased by almost a third in 2018-2020, so national pharmaceutical manufacturers have significant prospects for the development of export potential.

In general, the export dynamics of Ukrainian medicines have increased significantly over the past decade. Medicines produced in Ukraine are used in 50 countries, and the export has increased from 181 to 235 million dollars. The most popular export destinations are Uzbekistan, Georgia, Azerbaijan, Kazakhstan, Israel, Moldova and Brazil. Countries actively import hormones, antibiotics, vitamins and alkaloids.

In addition, Ukrainian medicines are very popular and appreciated by consumers from Arab countries and Southeast Asia. They are considered to be of higher quality than Indian and Chinese pharmaceuticals, and are equal in quality to the European ones.

It is more difficult for Ukrainian companies to enter the markets of Australia, Japan, the Persian Gulf countries, the EU and the USA because of strict regulatory policies. Also, such states as Algeria, Turkey, Egypt and Indonesia protect local producers, so they are rather closed for export. Only pharmaceuticals that have a unique molecule or are not produced in factories in these countries can be exported to such markets.

Regarding the EU, the process is complicated by the non-recognition of the Ukrainian GMP (Good Manufacturing Practice) certification of manufacturing quality. Therefore, companies are forced to undergo duplicate inspections by the EU authorities.

“Resources have to be spent on this, and in general this situation affects the competitiveness of Ukrainian products. Ukrainian leaders of pharmaceutical production have done their best. But only the conclusion of the Agreement on Conformity Assessment and Acceptance of Industrial Products (ACAA) between Ukraine and the EU can prevent additional inspections. Back in 2013, the EU signed such a document with Israel,” - explains Irina Radchenko.

Currently, the pharmaceutical industry is waiting for the introduction of clear and transparent, compliant with European rules for the production of medicines and supervision. This will help Ukrainian companies to increase export and become an additional guarantee of quality for Ukrainians.

Reference

PJSC Pharmaceutical Company “Darnitsa” was founded in 1930 and is celebrating its 91st anniversary this year. Since 1998, “Darnitsa” has been Ukraine’s leader in the production of medicines in volume terms. The strategic areas of portfolio development are cardiology, neurology and pain management. During 2015-2020, “Darnitsa” has launched 50 pharmaceutical brands on the market.