Prospects of domestic pharmaceutical industry: discussion at the International business forum «Europe-Poland-Ukraine: Rebuild Together»18 July 2022
Today, Poland gives extremely powerful support to the people of Ukraine. According to the UNHCR, more than half of the Ukrainians who have left the territory of Ukraine since the beginning of the full-scale invasion of Russia took refuge in Poland.
The support is also provided as the strategic bilateral partnership in various sectors of the economy. This was recently discussed by government officials, experts and representatives of the business community from both countries during the round table «Europe – Poland – Ukraine: Rebuild Together». The event was organized under the auspices of the Union of Entrepreneurs and Employers of Poland (ZPP) together with the European Business Association (EBA), the Union of Ukrainian Entrepreneurs (SUP) and the Chamber of Commerce and Industry of Ukraine (CCI), with the assistance of the Ministry of Foreign Affairs of Ukraine.
The cooperation in the pharmaceutical industry was a separate topic for discussion.
The pharmaceutical industry plays a significant role in the economy of Ukraine, determines the national security and defence of the country, especially during the full-scale war. It is an important segment of domestic market, and is characterized by a large knowledge-based and developed cooperation.
At the forum, the representatives of domestic business gave accent to their willingness to provide international partners with the opportunity to solve production tasks comprehensively at all stages of medicinal products production: from contract manufacturing to distribution.
It is also important for the pharmaceutical industry of Ukraine to expand cooperation with Poland and other EU countries in the context of scientific cooperation, notably, participation in the development of new substances through the creation of joint R&D groups together with leading companies of the EU pharmaceutical market.
However, the process of commercial distribution of Ukrainian medicines on the European market is currently very complicated. Domestic manufacturers face a number of tariff and non-tariff barriers that significantly affect the competitiveness of Ukrainian medicines.
The main non-tariff barrier is the EU non-recognition of international Good Manufacturing Practice (GMP) certificates issued by Ukrainian regulatory authorities. The need to re-obtain GMP-certificates from European regulating authorities has a major impact on the date of market entering and the price of medicinal products as well. First of all, it is the price that has the competitive advantage of Ukrainian manufacturers, given that the quality meets European standards.
When Ukraine gains the status of candidate for EU membership, a window of opportunity for the development and intensification of cooperation in the pharmaceutical industry was opened for our country. The removal of non-tariff barriers, in particular, the mutual recognition of GMP certificates will open the EU market for Ukrainian manufacturers, as well as other markets that require EU certificates.
“Ukrainian pharmaceutical industry is extremely powerful: we have more than 113 factories, the majority of our manufacturers are GMP certified, and billions of hryvnias are invested in the development of pharmaceutical industry annually. We have the capacity to replace India and China on the European market and to shorten the supply chain of medicines to Europe by offering contract manufacturing at our factories. Because of the war, millions of our citizens live in Europe now, so the demand for medicines is growing, and we can produce all the necessary medicines with the same quality, but at a lower price," said the forum participant Ksenia Velychko, GR Manager of the pharmaceutical company "Darnitsa".