Arguments Over Import Substitution Measures Heat Up

BMI View: The rapid development of Ukraine's pharmaceutical market has attracted strong interest from multinational drugmakers as a lucrative import destination and we hold our view that the country has a highly rewarding, but ultimately risk prone pharmaceutical market. However, the government has now introduced a directive to increase domestic producers' share of the market, with an approach that has been described as 'highly protectionist'. BMI has previously highlighted the threat of import substitution and we also maintain our view that the local industry currently lacks the capacity or the capital for the rapid development needed to significantly offset imported pharmaceuticals. The government's strategy to promote domestic drugs, if it proves viable, will be at the expense of foreign drugmakers.

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