The pharmaceutical market, one of the most auspicious sectors of the Ukrainian economy, is now developing rapidly and is proving to be attractive both for Ukrainian companies and for foreign investors as well. In 2005 market volume was estimated in $1,3 billions, and its increase as compared to 2004 was 35%. Experts acknowledge the fact that for the last few years the annual increase in volume of pharmaceutical market makes 25 % on the average. Ukraine traditionally owns a strong scientific and research base. In addition, there are considerable production capacities in terms of production of medications in Ukraine.

Presently, Ukrainian pharmaceutical enterprises meet international standards of GMP (Good Manufacturing Practice) quality, which has had a positive impact on the quality of pharmaceutical products, and also draws together Ukrainian and international pharmaceutical markets. One should not overlook the clear tendency of Ukrainian pharmaceutical companies to merge with foreign companies. It allows them to utilize production capacities more effectively, extend the assortment of medications, and also stimulates investments in new developments.

Konnov & Sozanovsky's lawyers provide complex legal services for pharmaceutical enterprises and also provide legal services in individual questions, in particular, in regard to the receipt of different permissions and licenses. We represent pharmaceutical companies in relations with the state bodies and accompany transactions on mergers and acquisitions of pharmaceutical companies. Our lawyers possess considerable experience in protection of intellectual property rights of pharmaceutical companies, including rights in trade marks, inventions etc; and also represent clients’ interests in courts of all jurisdictions.

The pharmaceutical market is one of the most dynamically developing segments of the Russian Federations’ market, attractive for both Russian as well as foreign investors. According to the data of the Marketing Agency DSM Group, the capacity of the Russian pharmaceutical market amounted to $12.3 billion USD in 2006, and its increase over 2005 was 36%.

The state is now  actively stepping into development of the Russian pharmaceutical market. Thus, in the near future the establishment of the Holding “Russian Pharmaceutical Technologies” (RPT) is set to consolidate the state assets of the pharmaceutical sector.

The major players of the pharmaceutical market – “Drug stores 36,6” and ”Rigla” have 838 and 490 sales outlets respectively, and their number is constantly growing. It should be mentioned that at the Russian pharmaceutical market, as well as at the world market a tendency of pharmaceutical companies’ consolidation is observed. It allows more efficient utilization of the production capacities, expansion of the range of goods, and greater allocation into the new developments.

Taking into consideration the aggressive regional development of the major pharmacies networks, the sales concentration is increasing sharply in the pharmacies market segment. The aggregate share of the top 10 pharmacies networks of Russia amounted to 20% in 2006 (for comparison, in 2002 – only 5%). With respect to DSM Group prognosis, in 2006 this rate will amount over 60%. Thus, pharmacies network “36,6” in result of the new drugstores establishment and acquisition of the retail networks increased its market presence to 24 regions. And the most significant transaction at the pharmacies market in 2006 was acquisition by the Companies Group “Protek”, already owning the second, regarding its size, pharmacies network “Rigla”, of the pharmacies network “Oz”, accounting more than 140 drugstores.

Konnov & Sozanovsky’s lawyers provide complex legal services for pharmaceutical enterprises, and also provide legal services in individual questions, in particular, in regard to the receipt of the different permissions and licenses. We represent pharmaceutical companies in relations with the state bodies and accompany transactions on mergers and acquisitions of the companies, working in this sector. Our lawyers possess considerable experience in protection of intellectual property rights of pharmaceutical companies, including rights in trade marks, inventions, etc, and also represent clients’ interests in courts.

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