spacer
home > ebr > summer 2010 > ukraine: biotech sector
PUBLICATIONS
European Biopharmaceutical Review

Ukraine: Biotech Sector

Timur Bondaryev and Svitlana Ivasenko at Arzinger provide an overview of the biotech sector in Ukraine’s pharma industry

In Ukraine the pharmaceutical industry is one of the most profitable and dynamic, and plays a significant role in the Ukrainian economy. However, the biotechnological sector of the industry lags significantly behind that of more developed countries. Despite its scientific and industrial potential – which are considered to be valuable assets of Ukraine – outdated equipment and lack of funding do not allow commercial development of biotechnologies and hinder the transfer of its results into practical areas.

The Ukrainian pharmaceutical market today is represented by more than 300 manufacturers from a range of countries and approximately 160 domestic manufacturers, including 22 enterprises that were engaged in the manufacture of drugs in the former Soviet Union.

Today, hospital purchases account for about 16 per cent of the pharmaceutical market of Ukraine; another 12 per cent of the market is covered by direct state procurement and the remaining portion is retail drugstore pharmacy. According to research, 55 per cent of sold medicines are Rx drugs, and the other 45 per cent are OTC. Currently, only about a quarter of drugs consumed in Ukraine are produced by domestic manufacturers, while the rest are imported (1).

The pharmaceutical market of Ukraine, which declined last year to approximately $2.1 billion, began to recover to pre-crisis levels in 2010, and experts predict that the volume of the market in 2011 will expand to about $2.6 to $2.9 billion.

The value of biotech products in the pharmaceutical market of Ukraine is approximately $5.5 million, but Ukraine’s share is only about $1.6 million (20 to 30 per cent). It should be noted, however, that these are rough estimates as the Ukrainian biotech market is poorly structured and official statistics do not exist. The largest segments of the pharmaceutical biotechnology market in Ukraine are probiotic drugs, vaccines and serums, closely followed by blood proteins, antibiotics, enzymes and genetically engineered drugs.

NEW DIRECTIONS

Ukraine has had success in the creation of multi-probiotics – multi-component probiotics with a broad spectrum of biotherapeutic activity. Currently one of the promising directions for the development of new biological drugs in Ukraine is the development of probiotics based on micro-organisms with desired properties, which are obtained by genetic engineering methods (2).

Today in the pharmaceutical sector of Ukraine there is a harmonisation of national laws and regulations with the relevant EU directives concerning the coordination of the drug development procedure, registration procedures and manufacturing, as well as IP protection.

The Pharmaceutical Sector Development Concept of the Healthcare of Ukraine, which was developed according to the recommendations of the World Health Organization and adopted at the end of 2007, defines the future directions and challenges of the pharmaceutical industry. It aims to create an appropriate legal framework that regulates pharmaceutical activities, the development of national policy in the pharmaceutical field in determining social priorities in providing the population with drugs, and the introduction of international standards, such as manufacturing (GMP), clinical (GCP), laboratory (GLP), distribution (GDP), pharmacy (GPP) and other good practices in divisions of the pharmaceutical sector (3).

At present, Ukraine is trying to become a member of the Pharmaceutical Inspection Convention and Pharmaceutical Inspection Cooperation Scheme (jointly referred to as PIC/S), of which there are 37 member countries, including Canada, Denmark, France, Germany, Lithuania, Malaysia and Spain. In this regard, on the 22nd to 26th March the PIC/S inspectors carried out the audit of the State Inspection on Medical Drugs Quality Control by the Ministry of Health of Ukraine. Its results will determine whether Ukraine will join this respected international organisation. Ukraine’s accession to the PIC/S will undoubtedly help to strengthen its prestige on the international pharmaceutical scene and will provide Ukrainian pharmaceutical manufacturers with many more opportunities to enter the world market (4).

ACADEMY ACHIEVEMENTS

The top scientific medical institution in Ukraine is the Academy of Medical Sciences. The State Budget of Ukraine for 2010 expects to provide approximately 1 billion UAH ($125 million) to finance the activities of the Academy, including 66.6 million UAH ($8.3 million) for basic research in the field of theoretical and clinical medicine, and 114.8 million UAH ($14.5 million) for applied scientific and technological developments and work performance on state programmes targeting the prevention and treatment of human diseases and the training of scientific personnel (5).

Within these budget programmes the execution of nearly 500 research projects is scheduled, including research designed to improve the population’s health by using new medical technologies, as well as the development of new tools for diagnostics and treatment using genetic engineering techniques, nanotechnologies and embryonic tissues.

CENTER OF INNOVATION

The State Center of Innovation Biotechnologies was established in Ukraine in 2010 for the development of the biotechnological sector in the pharmaceutical industry. The Center is a state scientific institution reporting to the Cabinet of Ministers of Ukraine. The main activities of the Center in accordance with its statutory documents are:
  • Research in the introduction of innovative biotechnology 
  • Research in the manufacture of immunological drugs 
  • Veterinary drugs and blood products, their testing and inspection 
  • The transfer of innovations to meet the needs of healthcare in the relevant vaccines, including medical antiserums, immunodiagnostics, antidotes, modern blood products 
  • Participation in drafting of State programs, concerning the implementation of innovative biotechnology and so on (6).
The decision of the Ukrainian government on the development of the State Target Program of the Creation of National Immunobiological Products (Ukrainian vaccine 2011 to 2015), to be approved by the end of this year, highlights the importance of the development of biotechnologies in Ukraine. The aim of the program is to create favourable conditions for the production of medical immunobiological products, to attract domestic and foreign investors, and to ensure the needs of the state in such strategic areas as: 

  • Production of modern bacterial and viral vaccines, including multicomponent ones (from more than 10 vaccines which are stipulated by the immunisation calendar of Ukraine, only four are produced locally)
  • Production of recombinant drugs based on recombinant proteins and monoclonal antibodies 
  • Production of the range of blood and plasma (during the last few years blood and plasma, which are cured, amounted to 53 per cent of the minimum standards required by WHO for countries with a population of about 45 million people and the provision level for blood products amounted to 23 per cent of the recommended WHO standards) 
  • Production of cell therapy products 
  • Production of diagnostic products (to date the part of registered diagnostic products of Ukrainian origin is only 27 per cent)
In order to achieve this aim, Ukraine is establishing the provision of state support through the creation of scientific and technological centres in specialised institutes under the National Academy of Sciences, which will be entrusted with the functions of scientific research, support of the introduction of technology in production, technical supervision, and so on. Ukraine’s government is planning to invest 1.5 billion UAH ($190 million) in this program (7).

On 1st January 2010, the Law of Ukraine ‘On scientific parks’ came into force. It specifies the peculiarities of the state support and the introduction of special treatment of the activities of scientific parks, as well as the peculiarities of imposing import duties for scientific, laboratory and research equipment, components and materials to be used for the implementation of the activities (8).

INFORMATION EXCHANGE

The lack of demand in Ukraine for hightech developments is caused by the failure of domestic manufacturers to finance and implement relevant research. Due to the lack of commercialisation of innovative products, there is no mutually beneficial cooperation between the education, science and business sectors. In order to solve this problem, in early 2010 the Ministry of Education and Science of Ukraine and the Academy of Technological Sciences of Ukraine signed the Memorandum of Creation and Development of the National Technology Transfer Network, which aims to meet the challenge of increasing the exchange of information between participants of technology transfer (including scientists, experts and managers). The main tasks of the network are evaluation of new technologies, and the development and implementation of the mechanisms of their commercialisation (9).

International technological and scientific exchange, as well as the transfer of intellectual capital, are the distinctive features of the present time. National Information Centre for Ukraine-EU S&T Cooperation (NIP) aims to create conditions to maintain and develop Ukrainian scientific, technical and intellectual potential, by means of industrial and economic implementation of innovations in Ukraine and abroad. The NIP was established in 2003 (Order of the Ministry of Education and Science of Ukraine No 514, dated 1st August 2003) and assists Ukrainian scientific organisations and enterprises to promote their technologies both to Ukrainian and world markets. The principal activities of the NIP include attracting investment and searching for sources of financial support for implementation of new technologies in accordance with the priority fields of science and technology development in Ukraine, as well as organisational and information support to the application of science intensive technologies for the manufacture of competitive domestic products (10).

CONCLUSION

The pharmaceutical market in Ukraine may have suffered a decline in 2009, but experts are already pointing to a bounceback. In light of all the factors mentioned above, there is reason to believe that in the coming years the development of drugs based on biotechnologies will become a leading trend in the pharmaceutical industry of Ukraine.

References
  1. Pharmaceutical industry, http://www.mfa.gov.ua/data/upload/p ublication/12752/3217.htm
  2. Strelnikov L, Strilets O, Shcherbak E, Chicitkina V, Dolgova T, Perspectives and ways of the development of manufacturing of biotech medicines in Ukraine, Annals of Mechnicov Institute 4, 2006, http://www.nbuv.gov.ua/ejournals/ ami/2006/06slspnu.pdf
  3. Pharmaceutical Sector Development Concept of the Healthcare of Ukraine, approved by Order of the Ministry of Health of Ukraine 838, 18th December 2007, www.moz.gov.ua/ ua/main/docs/?docID=9068
  4. Ukraine has passed the final stage to join the PIC, www.diklz.gov.ua
  5. Law of Ukraine, On State Budget of Ukraine for 2010, 2154-VI, 27th April 2010, http://zakon.rada.gov.ua/ cgi-bin/laws/main.cgi?nreg=2154-17
  6. Decision of the Cabinet of Ministry of Ukraine, On Aspects of the Establishment of State Center of Innovation Biotechnologies, 27, 6th January 2010, http://zakon1.rada.gov.ua/cgi-bin/ laws/main.cgi?nreg=27-2010-%EF
  7. Draft of the State Target Program of the Creation of National Immunobiological Products, Ukrainian vaccine 2011-2015, www.moz.gov.ua/ua/main/docs/
  8. Law of Ukraine, On scientific parks, 1563-VI, 25th June 2009 http://zakon1.rada.gov.ua/cgibin/ laws/main.cgi?nreg=1563-17
  9. Memorandum of creation and development of the National Technology Transfer Network, www.nttn.org.ua/images/sait/Docume nts/memorandum3.pdf
  10. About NIP, http://www.fp6- nip.kiev.ua/index.php?p=about

Read full article from PDF >>

Rate this article You must be a member of the site to make a vote.  
Average rating:
0
     

There are no comments in regards to this article.

spacer
Timur Bondaryev has been a Senior Partner at Arzinger since 2002. He specialises in advising on real estate and construction transactions, mergers and acquisitions, and on antitrust and privatisation, pharmaceutical issues. He obtained his Law degree at the Institute of International Relations at Kyiv National Taras Shevchenko University. He was a Head of Division in the Legal Department at the State Property Fund of Ukraine and Head of the Legal Department at Ukrainian Aluminium. Timur is a legal advisor to the Lviv city Mayor in foreign investments and public private partnership issues. He is Head of the Austrian and Ukrainian Law Society and Co-Chairman of the Real Estate Committee of the American Chamber of Commerce.

Svitlana Ivasenko has been an Associate at Arzinger since 2010. She specialises in advising on pharmaceutical issues. She obtained her Law degree at Kyiv National Taras Shevchenko University, and she has served as a legal counsel at PSI-Ukraine, Ltd and in the International Economic Relations Department at the Ukrainian Chamber of Commerce and Industry.
spacer
Timur Bondaryev
spacer
spacer
spacer
Svitlana Ivasenko
spacer
spacer
Print this page
Send to a friend
Privacy statement

Industry Events

World Vaccine Congress

10-12 April 2012, Gaylord National Hotel and Convention Center, Washington, US

The 12th annual World Vaccine Congress Washington brings new scientific and business critical debate, discussion and solutions from the true global pioneers shaping vaccine R&D.
More info >>

 
News and Press Releases

Pantec Biosolutions to Present P.L.E.A.S.E.® Professional for Transdermal Drug Delivery at DDP in Las Vegas

Pantec Biosolutions AG, the developer and manufacturer of P.L.E.A.S.E.® Professional, a state of the art portable laser device that sets new standards for safety, precision and versatility, today announced that it will be giving a scientific company presentation during the “Drug Delivery Partnerships” conference from 25th -27th  January 2012 in Las Vegas, USA.
More info >>

 

 

Buy Atrovent Online no prescription Buy Symbicort Online no prescription Buy Flovent Online no prescription Buy Flonase Online no prescription Buy Rhinocort Online no prescription Buy Allegra Online no prescription Buy Advair Online no prescription Buy Combivent Online no prescription Buy Astelin Online no prescription Buy Spiriva Online no prescription Buy Ventolin Online no prescription
©2000-2011 Samedan Ltd.
Add to favourites

Print this page

Send to a friend
Privacy statement
.