Pharmexpert Entered ТОР10 Distributors in Russian Pharma Market

OREANDA-NEWS. December 7, 2011. In the first 9 months of 2011, dynamic revenue indicators of pharmaceutical distributors looked rather disparate. A significant decline of business profitability due to drug price markup regulation resulted in the growing competition among wholesalers in specific regional markets. This being the case, smaller wholesale companies managed to outplay large players thanks to market knowledge and greater mobility. That fact accounts for the slowing growth trend of the five companies leading the sector. If one takes into account the range of operations of large wholesalers, it is evident that such companies have to make significant investments, in new technologies among other areas, which would enable them to reduce general costs. However, the payback of investments and any ROI in conditions of low profitability may be guaranteed only in the long term. This is understood by far from all investors doing business in the Russian market. Companies of the “second tier” that seem to be snapping at the heels of big business, also find themselves in the risk zone. Their profitability is also extremely low, and, although the “ceiling” of their growth has not yet been achieved, it is quite within reach for most companies: sooner or later, the situation is sure to call for dire measures, with merger being one of the most probable scenarios.

ТОР10 distributors by MS in direct drug supply segment (including beneficiary drug coverage), Q1-311