Chemiсals and pharmaceuticals

In July-September, the Kyivmedpreparat company, increased its net revenue by 23.41% or UAH 37.394 mln to UAH 197.105 mln, compared July-September 2007. Kyivmedpreparat, as Ukraine’s largest producer of antibiotics, ended 3Q2008 with a net profit of UAH 19.719 mln.

For the period January-September 2008, the Closed Joint Stock Company “Borshchagivskiy Chemical Pharmaceutical Plant” (BCPP) increased its net income by 64.2% YoY to UAH 17.3 mln. Net Sales increased by 26.7% YoY, up to UAH 212 mln. According to results from 3Q2008 along, BCPP posted a net income of UAH 3.13 mln. In comparison, the same period in 2007 saw the company post a 0.04 net loss. The company’s long-term liabilities are UAH 28.9 mln.

The Kyiv-based Credit Rating agency has affirmed the uaBBB long-term credit rating for the issue of “A” series bonds by Kyivmedpreparat [KMED UZ, BUY], the largest antibiotics plant in Ukraine. As the agency reported, this bond issuance is equal to UAH 30 mln in value.

Ukraine’s Cabinet of Ministers has asked the National Bank of Ukraine to provide credit to pharmaceutical wholesalers through loans from two state-owned banks – Ukreksimbank and Oshadbank.

The Ukrainian government has decided to implement markup ceilings for pharmaceuticals.

Prime Minister Yulia Tymoshenko has asked the State Prosecutor’s office to investigate unreasonable prices increases in the wholesale pharmaceutical sector.

According to the publication Business-Credit, the pharmaceutical market in Ukraine grew 42% in 1H2008in terms of cash value, reaching USD 1.621 bln. In terms of volume, the market grew by 7% to 0.680 mln units in the same period.

Ukraine’s State Medicine and Medical Products Service favors stricter licensing procedures in the field of pharmaceuticals and health care, as announced at a meeting of the State Committee on Regulatory Policy and Entrepreneurship.

Kyivmedpreparat [KMED UZ, U/R], the leading antibiotics pharmaceutical producer in Ukraine and a member of the Arterium Corporation, decided to increase its share capital by UAH 100 mln, up to the level of UAH 200.1 mln.

In August 2008, Ukraine’s imports of pharmaceutical increased by 34.% YoY. In value terms, it increased by USD 50.618 mln to reach USD 197.364 mln.