Ukrainian Authorities Approve Drug Industry Consolidation

Ukraine's competition authorities have approved the merger of two local drug manufacturers, Kyivmedpreparat and Halychpharm, in a move widely seen as an attempt to bolster the country's small drug production sector. Kyivmedpreparat has estimated 2004 income at roughly US$30mn, while smaller rival Halychpharm is ranked as the country's sixth-largest producer. The company mainly produces basic medicines, and is focused on the domestic market.

Ukraine's manufacturing sector is limited by slow development in recent years, with per capita spending of roughly $13 per year, and market reform has lagged behind Eastern European rivals and many comparable ex-Soviet states in the past decade. Nevertheless, generic-based Eastern European firms are increasing local investment, and a GMP certification programme is gradually improving production standards.