MarketMedia studied which Russian pharmacy chains were included in the top ten largest by number of outlets.
The ten largest classical pharmacy chains by number of outlets in Russia at the end of the first quarter of 2018 totaled more than 11 thousand pharmacies. In total, there are more than two thousand chains operating in the country, which accounted for 81.2% of the Russian retail drug market in 2017 in monetary terms, according to the analytical company RNC Pharma.
In the coming years, the largest players will develop through the purchase of small regional chains, since the era of organic growth is long over, top managers of pharmacy chains said at industry events. In the coming years, the number of networks will be significantly reduced.
Consolidation
One of the trends in pharmacy retail is the process of market consolidation, which has not stopped for several years. Moreover, over the past two years he has become very active. Last year, about 50 transactions were completed in Russia. “The interesting thing here is not even how many transactions are taking place, but the fact that quite large and quite successful companies were put up for sale, and this was surprising. For example, the Samson-Pharma or Kazan Pharmacies chains,” says Nikolai Bespalov, development director of the analytical company RNC Pharma, emphasizing that previously the largest transactions took place in relation to companies in difficult financial situations. For example, Raduga changed ownership due to the poor financial condition of its parent Rosta.
Currently, many assets are being sold rather because their owners do not see prospects for market development: high competition, declining business profitability, falling purchasing power. Currently, there is low demand for medicines and related products.
Federal chains, which have bought up many regional players over the past few years, say that it is no longer possible to develop organically and this year they will continue to buy small chains or single pharmacies for the sake of location.
Alliances
If we take the top five, there are four Moscow networks and one Perm one. The top 10 did not take into account regional pharmacy chains united in alliances and unions, as well as online pharmacies. But if we analyze alliances, the largest is the Moscow Association of Independent Pharmacies (ASNA), which unites more than 8 thousand retail outlets in Russia right up to Kamchatka. By the end of this year, the association intends to grow to 14 thousand pharmacies.
In second place in terms of the number of united local players is the Samara chain Implosion (more than 3.4 thousand points), in which more than 60% of pharmacies are either partner (connected to the Implosion software for procurement) or franchise.
Third place is occupied by the Novosibirsk chain Melodiya Zdorovya (1.8 thousand), which also has more than 50% of its outlets as partners.
The peak of associations of local players into unions or unions occurred in 2017. This allows networks to have lower purchasing prices and consolidate orders from manufacturers for marketing services (manufacturers pay networks to promote their products).
Despite the fact that work on a high-profile bill allowing the sale of over-the-counter drugs in grocery retail has been stopped (and this was a big threat to the pharmaceutical market, representatives of the chains said that if this law was adopted, they would be forced to close up to half of their outlets due to the close proximity with grocery stores), the situation in pharmacy retail is extremely difficult. “Most likely, in the coming years, small players will find themselves in extremely unfavorable conditions; local companies will find it difficult to compete for marketing budgets with market leaders. There will be a series of bankruptcies of small and medium-sized companies in the industry, and there will be an oversupply on the M&A market. So now you can get out of business on not bad terms,” says Nikolai Bespalov.
1. Rigla
The first place in the Top 10 of the largest classical pharmaceutical chains is occupied by Rigla, part of the Protek Group of Companies. The network includes more than 2.1 thousand pharmacies in 50 regions of Russia. This company, in addition to the main brand “Rigla”, operates pharmacies under 12 more signs, including “Zhivika”, “Pharmacies 03”, “Yugorsky Lekar”, etc. Its share in the retail drug market is 5.6% in rubles. "Rigla", which has bought up many regional assets in recent years, including Kolomna "DOMpharma", Ekaterinburg "Apteka City", Pskov "Apteki 003", Kostroma "Panacea", has now announced a new business strategy aimed primarily at organic network growth and revenue growth outstripping the growth rate of the pharmaceutical market, said Alexander Filippov, CEO of the Rigla pharmacy chain.
2.
Erkafarm
As of April 1, 2018, it managed more than 1.2 thousand pharmacies in 8 federal districts Russia under various brands, including Doctor Stoletov, Ozerki, Good Pharmacy, People's Pharmacy, Pharmacy No. 1, Rainbow, First Aid, Ladushka, etc. Pharmacies operate in various formats - from discounters to pharmaceutical markets. This year the company plans to develop a new drogerie format under the Ozerki brand in the low price segment. The first stores will be opened in St. Petersburg and the Leningrad region, and then in Moscow, Novosibirsk and Krasnodar. The company's share in the retail drug market was 4.6%.
3. Pharmacy chain 36.6
The Pharmacy Chain 36.6 group of companies was founded in 1991. The company operates networks under the names “36.6”, “Gorzdrav” and A.v.e., the total number of which exceeded 1,470 points. The company's share in the retail drug market was 4.4%.
4. Planet Health
In fourth place in the ranking of the largest pharmacies by number of outlets is the Perm-based “Planet of Health”, which has more than 1.4 thousand pharmacies, including those under the “Country of Childhood” brand, in 50 cities of Russia. In the Perm region, the chain is a leader and occupies more than 60% of the retail market, according to estimates from RNC Pharma. The company's share in the retail drug market was 3.2%.
5. Neo-Farm
The Moscow group of companies Neo-Pharm is developing the Neopharm and Stolichki networks, operating in different price segments. Compared to the four previous pharmaceutical companies, it has much fewer pharmacy outlets - only 469. However, the company is developing larger formats, unlike its competitors - hypermarkets and supermarkets. Her share is Russian market drugs is estimated at 3.1%.
6. Farmland
Sixth place in the ranking is occupied by the Bashkir Farmland, operating since 1997. It has more than a thousand pharmacies in Russia of different formats (pharmacy centers, social pharmacies, health and beauty centers), and also has optical salons, orthopedic salons and a hearing center. The company's share in the Russian drug market was 2.1%.
7. April
The Krasnodar pharmacy chain "April" numbered 891 pharmacies at the end of the first quarter of this year. Its share reached 1.9%. Just like the largest federal chains, Krasnodar pharmacy retail is also developing through the purchase local networks. Thus, in the spring of this year, April announced the purchase of the largest Tatar chain of Kazan pharmacies (112 points). In 2017, April was eyeing the Izhevsk chain Pharmakon & Klyukva (117 points), but in the middle of the year it was taken over by Pharmaimpex, Vademecum magazine previously reported.
8. Pharmacy Timer
At the end of the first quarter, the Perm chain “Apteka-Timer” consisted of 673 points with a 1.8% share of the drug market.
9. Pharmaimpex
The Izhevsk Pharmaimpex chain was created in 1994. Initially, the company was engaged in wholesale supplies, collaborating mainly with hospitals. The first pharmacy opened in Udmurtia in 1998. At the end of the first quarter of 2018, the network consisted of 729 pharmacies, and its share in Russia in the retail drug market was 1.6%.
10. Vita
Samara pharmaceutical company Vita manages almost a thousand pharmacies. The company is developing two brands: Vita Express and My Pharmacy low prices" The consolidated share in the drug market reached 1.4%.
The Russian retail pharmacy market is experiencing a phase of consolidation and tightening of government regulation. Leaders buy up local players, and they, in turn, continue to unite in alliances for survival. MarketMedia publishes the top 20 pharmacy chains.
In 2018, in Russia, the growth in sales of pharmaceuticals in packages increased by 6% to 5.6 billion compared to 2017. Sales in monetary terms increased by 7%, amounting to more than 1.256 trillion rubles, as calculated by the research company AlphaRM.
The data from the RNC Pharma company is more pessimistic: at the end of the year, the dynamics of the retail market in monetary terms stopped at 2.2%, its volume amounted to 1.2 trillion rubles, and in physical terms it generally went into the negative sector - 3.2%, up to 5.5 billion packages.
You can read about why at the end of 2018, analysts from different research agencies differed greatly in their calculations of drug sales in Russia, you can read Nikolai Bespalov, development director of the analytical company RNC Pharma.
As of January 1, 2019, more than 65.6 thousand pharmacies operated in Russia. Despite the fact that their number increased by 3% compared to 2017, a decrease in the number of pharmacy outlets was recorded in the fourth quarter of 2018. Revenue in December amounted to 111.2 billion rubles (+4%), and average revenue per unit was 1.7 million rubles (+1% compared to December 2017), according to the AlphaRM report.
At the end of 2018, more than 4.7 billion packages of medicines worth 892 billion rubles were sold through pharmacies, which is 8% more in money and 7% more in units.
If we compare the ratings of pharmacy chains in 2018 and 2017, changes have occurred in the top three. “Group 36.6” dropped two places, losing second place to Erkafarm Group of Companies, and third place to the Samara chain “Implozia”. The leader in total sales volume is still Rigla (part of the PROTEK Group of Companies).
As for trends, 2018 saw the continuation of market consolidation, which has been going on for several years, and the departure of small regional chains. Pharmacy chains continued to unite into various alliances, which peaked in 2017, to strengthen purchasing power and consolidate orders from manufacturers for marketing services. Since manufacturers pay networks to promote their products.
By the way, recently the National Pharmaceutical Chamber (NFC) union appealed to the Ministry of Industry and Trade with a request to regulate the interaction between pharmacy chains and manufacturers, since pharmacies in 60% of cases impose on customers drugs with whose manufacturers they have signed marketing agreements, the Kommersant newspaper reported.
The NFP proposes to prohibit the priority recommendation of a specific drug to customers within the framework of marketing agreements between pharmacy chains and manufacturers. If the prohibition is violated, the validity of the specialist’s certificate or the accreditation certificate of the pharmacist is expected to be suspended for a period of up to 6 months. The corresponding mandatory checks must be included in the regulations for test purchases of Roszdravnadzor, the letter says. It follows from this that otherwise the patient purchases a drug imposed on him, and not one recommended by the doctor.
Pavel Raschupkin Director of Analytics at RNC Pharma
One of the main trends for pharmaceutical retail in 2018 was the general stagnation of the segment. Against the backdrop of this recession, we observed a fairly large number of M&A transactions. Of course, local pharmacy chains became the main targets of transactions.
Among the market consolidators are Farmland, Rigla and other players. But certain changes were also noticed among the major players. For example, three players from the top 20 - “Planet Health”, “Pharmacist +” and “Maksavit” - merged into a single organization under the auspices of the “Planet Health” network. The Novaya Pharmacy chain has joined the IRIS partnership.
This process It’s quite understandable - previously M&A transactions were in the nature of local strengthening of individual players, now, after the increase in the number of participants in the “1000+ pharmacies” club, more serious steps are required to unite the efforts of networks for equal competition.
Moreover, it is obvious that more network, the more favorable conditions it can receive for supplies from distributors and for marketing contracts from manufacturers.
The latter is associated with the following trend, which began to unfold at the end of 2018. A proposal was made to limit maximum size bonus for marketing in the pharmacy segment. By the way, there are already proposals to completely ban this type of cooperation between manufacturers and pharmacy retail.
Potentially, this could seriously hit the retail business, especially those players who built their networks primarily on the back margin (back margin, which reflects the part of the profit that the company receives from the supplier in the form of various discounts, bonuses, etc. - Ed.). By the way, in 2018 the latter also actively revised the conditions for paying bonuses and tightened control over this type of activity. This is partly the “merit” of the pharmaceutical market participants themselves.
Some companies actively practiced dumping goods back into the wholesale segment in order to fulfill the mandatory conditions of marketing contracts and receive bonuses.
But at the same time, a very definite understanding is emerging that the state is strengthening control over the segment. In addition to the tightening, the industry is also under pressure from the active development of distance selling of medicines, causing an outflow of parapharmaceutical (non-medicinal) assortment from pharmacies. Namely, this category is one of the most marginal. So far, it is officially prohibited to sell medicines in Russia via the Internet, but some market participants have found a way to circumvent the ban (the Ozon online store sells medicines through a pharmacy on the basis of a pharmaceutical license, and the retailer’s couriers deliver medicines on behalf of customers. - Ed.).
To summarize, we can conclude that in 2019 and beyond, it will be increasingly difficult for individual pharmacies and small chains to survive in the pharmacy market. The consolidation of the segment is already noticeable (the top 20 account for more than 50%), and this figure will grow even more this year.
And of course, the higher the competition, the more difficult the struggle for business profitability. In addition, so far (as of the end of the first quarter of 2019) we do not see serious prerequisites for restoring market growth in monetary terms, not to mention in kind, which is also unlikely to add optimism to market participants.
Top 20 pharmacy chains based on the results of 2018 in Russia
1. “Rigla” (Moscow). The pharmacy chain is part of the PROTEK Group of Companies, which operates in all main segments of the pharmaceutical industry: production of medicines, distribution of pharmaceuticals and beauty and health products, as well as retail sales. The audited consolidated revenue of the group based on the results of 2017 amounted to 258.5 billion rubles.
In 2018, the Rigla pharmacy chain was replenished with 426 pharmacies in Russia, including through mergers and acquisitions, and as of January 1, 2019, there were 2,457 thousand pharmacies. The average bill is 489.93 rubles. The company's share in the retail pharmaceutical market at the end of 2018 was 5.46%.
2. Group of Companies "Erkapharm" (Moscow). The Erkapharm Group, one of the leaders in the Russian pharmaceutical market, was founded in 1994. The group includes 1.266 thousand pharmacies in eight federal districts, operating in various formats - from discounters to pharmaceutical markets under the brands Doctor Stoletov, Ozerki, Good Pharmacy, People's Pharmacy, Pharmacy No. 1, Raduga ", "First Aid", "Ladushka", etc. The company's pharmacies serve more than 6 million customers monthly. Since 2018, the company began to develop a new format of drogerie under the Ozerki brand in the low price segment. The first stores opened in St. Petersburg and the Leningrad region, and then in Moscow. The company's share in the retail pharmaceutical market at the end of 2018 was 5.35%.
3. “Implosion” (Samara). The Implosia network unites more than 2.5 thousand points, of which more than 60% of pharmacies are either partner pharmacies (connected to the Implosia software for purchasing purposes) or franchised. Total revenue at the end of 2018 is 46.5 billion rubles, market share is 3.83%.
4. "Group 36.6" (Moscow). The Pharmacy Chain 36.6 group of companies was founded in 1991. The company operates networks under the names “36.6”, “Gorzdrav” and A.v.e., the total number of which exceeded 1,314 thousand points. The company's share in the retail drug market was 4.4%. At the end of 2018, the network lost its position in the ranking of the largest networks, moving from second position to fourth. During the year, the group of companies closed more than 400 pharmacies in the country. Obviously, we're talking about about unprofitable points, the total number of which is not disclosed by the company. Thus, the new top management is trying to bring the retail business, which accounts for the bulk of the company's revenue, out of the crisis. The share decreased from 4.48 to 3.64%. As Kommersant wrote earlier, by 2021 the EBITDA margin of each pharmacy will be 3.5% (the current figure is not disclosed), and the chain’s market share will increase from 4.4 to 10%. For comparison: Rigla's current EBITDA margin for each pharmacy is 4.8%.
5. “Planet of Health” (Perm). As of January 1, 2019, the network consisted of more than 1,696 thousand pharmacies, including those under the “Country of Childhood” brand, in 50 cities of Russia. During the year, the company opened 321 pharmacies. In the Perm region, the chain is a leader and occupies more than 60% of the retail market (according to RNC Pharma). The company's share in the retail drug market was 2.96%.
6. “Neo-Pharm” (Moscow). The company develops pharmacies under the Neopharm and Stolichki brands, operating in different price segments. Compared to the top five players, it has much fewer pharmacy outlets - only 606. However, the company is developing larger formats, unlike its competitors - hypermarkets and supermarkets. During the year, she opened 124 objects. Its share in the Russian drug market is estimated at 2.87%.
7. “Vita” (Samara). The Vita pharmaceutical company manages almost a thousand pharmacies. The company is developing two brands: Vita Express and My Low Price Pharmacy. Over the year, the company opened more than 600 pharmacies, its share in the drug market increased from 1.35 to 2.68%.
8. “April” (Krasnodar). The April pharmacies chain consisted of 1,335 pharmacies under the April and Pharmacy Warehouse brands (economy segment) as of January 1, 2019. The company's total share increased from 1.94 to 2.56%. During the year, the chain opened just over 450 pharmacies, including through acquisitions. For example, in 2018, April absorbed the largest Tatar chain, Kazan Pharmacies (112 points).
9. “Farmland” (Ufa). The Bashkir company has been operating since 1997. In 2018, it increased its network from 954 to 1,114 points in Russia. The company operates in different formats - pharmacy centers, social pharmacies, health and beauty centers, and also has optical salons, orthopedic salons and a hearing center. The company's share in the Russian drug market increased from 1.77 to 2.1%. Turnover at the end of the year amounted to 25.013 billion rubles.
10. “Pharmaimpex” (Izhevsk). The company was founded in 1994. Initially, it was engaged in the wholesale supply of medicines, collaborating mainly with hospitals. The first pharmacy opened in Udmurtia in 1998. At the beginning of 2019, the network consisted of 757 pharmacies (+28 points per year), its turnover at the end of 2018 amounted to 19.4 billion rubles, and its share in Russia in the retail drug market was 1.6%.
11. “Pharmacopeia & Your Doctor” (Tula). The Pharmacopeika pharmacy chain is a franchising project of the pharmaceutical distributor Medexport - North Star LLC. Pharmacopeika, which has more than 600 points, operates in the Altai and Krasnoyarsk territories, Kemerovo, Novosibirsk, Tomsk and Tyumen regions, as well as in the Khanty-Mansi Autonomous Okrug. The network of pharmacies "Your Doctor" has more than 300 points in the Tula, Kaluga, Vladimir and Moscow regions, as well as in the Krasnodar Territory. The owners of the two networks merged in 2016. During the year, the combined company opened 52 pharmacies. The consolidated turnover of the two networks in 2018 amounted to 18.2 billion rubles, the average bill was 440 rubles, and the market share was 1.5%.
12. “Pharmacies from the warehouse” (Perm). Its owners, Andrey Godovalov and Nikolay Shavrin, have been engaged in wholesale sales of medicines since the 1990s; they began to develop the “Pharmacies from Warehouse” chain (discounter segment) in 2009. Now the network is represented in 23 regions of Russia and has 767 pharmacies (+83 pharmacies). Its turnover at the end of 2018 amounted to 14.6 billion rubles, the average bill was 463 rubles, and its market share was 1.2%.
13. Group “36.7S&Maksavit” (Nizhny Novgorod). Pharmacies under the “36.7” brand have been operating since 1998. In 2010, the company began to develop another brand - discount pharmacies "Maksavit". Currently, 489 pharmacies (+85 pharmacies) operate under two brands in 36 cities of Russia. The company's turnover at the end of 2018 amounted to 14.2 billion rubles, the average bill was 496 rubles, the company's share was 1.17%.
14. “Melody of Health” (Novosibirsk). The chain has been operating on the market since 2006 and today is present in 53 regions of Russia and has 766 pharmacies (+43 points). These are mainly pharmacy supermarkets with open displays. Turnover at the end of 2018 amounted to 13.1 billion rubles, the average bill was 409.58 rubles, and the market share was 1.08%.
15. “Mega Pharm” (Moscow). The pharmacy company "Mega Pharm" (pharmacies "A-Mega", "Yes, Healthy!", as well as premium pharmacies "Azbuka LIFE") entered the market in 2016 and is part of the Marathon Group holding. The holding was founded in May 2017 by Alexander Vinokurov and Sergei Zakharov, later Andrey Tyasto joined them as a partner. At the end of 2018, Mega Pharm had 1,008 pharmacies (+138 points per year), the average bill was 303.51 rubles, and the market share increased over the year from 0.39 to 0.95%. The network’s turnover at the end of 2018 exceeded 1.5 billion rubles. Mega Pharm is developing in partnership with X5, Azbuka Vkusa, Russian Railways, Medical center Elena Malysheva. The pharmacy retailer plans to open more than 4 thousand retail outlets by 2021.
16. “Pharmacist+” (Rostov-on-Don). The pharmacy chain is owned by the drug distributor CJSC Pharmatsevt, which has been operating on the market for more than 25 years. On the basis of the distributor, a warehouse for the storage and distribution of immunobiological drugs, diagnostic tools and antiretroviral drugs of the Ministry of Health of the Rostov Region has been created and has been operating for 10 years. At the beginning of 2019, the pharmacy chain consisted of 334 pharmacies (-13 pharmacies), the average bill was 460 rubles, the market share was 0.87%. Turnover at the end of 2018 exceeded 10.6 billion rubles.
17. “New Pharmacy” and “Minitsen Pharmacy” (Khabarovsk). Little is known about these pharmacy companies. Network sites are also uninformative. According to SPARK, the operating legal entity of the New Pharmacy chain is Superpharma LLC, owned by Igor Zhukovich (48%), Igor Boyarkin (30%) and Artem Zhukovich (22%). The operating legal entity of Minitsen Pharmacy is Avers Minitsen Pharmacy LLC, which has the same owners and the same distribution of shares. The total turnover of the two networks at the end of 2018 exceeded 10 billion rubles (9 billion rubles in 2017), the total number of pharmacies reached 161 (remained unchanged), the average bill decreased at the end of the year compared to 2017 from 738 to 662.39 rubles , and the market share was 0.83%.
18. “Nevis” (St. Petersburg). Pharmacies have been operating in the North-West region for more than 25 years and are part of the Nevis Trading Houses holding, created in 1992. It also includes several companies: the production of feminine hygiene products under the brand name “Angelina”, cosmetic detergents under the brand name “Vuoksa”, cosmetics with pheromones under the brand name “Dr.VILSH”. At the end of 2018, the turnover of Nevis pharmacies exceeded 8.3 billion rubles, the number of outlets for the year increased from 428 to 457, the average bill decreased slightly - from 388 to 382 rubles, the market share was 0.69%.
19. “Zdorov.ru” (Moscow). The pharmacy chain has been operating since 2003. According to SPARK, Zdorov.ru LLC is owned by Sergei Kagramanov (45%), Mikhail Akimov (33%), Artem Pyshnyak (12%), Yuri Tikhokhod (5%) and Olga Shcherbinkina (5%). The network’s turnover at the end of 2018 amounted to 7.4 billion rubles, the average check was 1.3 thousand rubles, and the number of points increased from 52 to 63.
20. “Aloe” (St. Petersburg). The Aloe pharmacy chain is part of the BSS pharmaceutical holding and has been developing since 2014. At the end of 2018, it consisted of 268 pharmacies (+22 pharmacies). Initially, the network developed within the North-Western region, but later expanded the boundaries of its presence and today is present in the Ural and Central Federal Districts. Turnover at the end of 2018 reached 6.9 billion rubles, the average bill was 490 rubles, and the share was 0.57%.
The analytical company RNC Pharma ® presents a rating of Russian pharmacy chains based on the results of 1-3 quarters. 2017
The third quarter in relation to Russian pharmaceutical retail was replete with a wide variety of events. We had to witness both all kinds of transactions, often quite large, and the renewal of rhetoric on certain regulatory issues, in particular the possibility of selling drugs in supermarkets.
The issue of expanding drug sales points, which has been going on intermittently since 2014, has become quite boring. Neither representatives of the professional pharmaceutical community, nor, we dare say, representatives of “big retail”, who are slowly but surely developing their own projects in pharmaceutical retail, can find any obvious expediency in this innovation. Nevertheless this question rises from the depths of the Government with enviable consistency.
Transactions, the number of which seems to be growing every day, have also become almost commonplace. The change of owners of “Classics” and “Pharmakor”, even adjusted for the decent size of the companies, is also difficult to suspect of originality, if only due to the striking similarity of the fate of these companies before the sale and the organizational format in which the transactions were carried out.
So, upon closer examination, the apparent diversity of the information flow leaves a feeling of some déjà vu, which, against the backdrop of quite obvious signs of stagnation in the Russian pharmaceutical market, looks very symptomatic.
Tab. TOP pharmacy chains by share in the retail and commercial drug market in Russia based on the results of 1-3 quarters. 2017
| Pharmacy chain | Central office location | Number of points as of 10/01/2017 | Market share based on the results of 1-3 quarters. 2017, % |
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| not LP | the market as a whole, without LLO |
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| Classic pharmacy chains |
||||||
| ASNA 1 | ||||||
| Rigla 2 | ||||||
| Pharmacy chain 36.6 3 | ||||||
| Erkafarm Group of Companies | ||||||
| Implosion 2 | ||||||
| Pharmacies operating under the Planet Health brand | ||||||
| Neo-Pharm | ||||||
| Farmland | ||||||
| Pharmaimpex 2 | ||||||
| Pharmacy-Timer | ||||||
| April | Krasnodar | |||||
| Pharmacopeia - Your Doctor | ||||||
| Melody of health | Novosibirsk | |||||
| Vita | ||||||
| Maksavit (including 36.7C) | N.Novgorod | |||||
| Pharmacy associations 4 |
||||||
| ProPharmacy | ||||||
| St. Petersburg | ||||||
| SPRING | St. Petersburg | |||||
| Apteka.ru | Novosibirsk | |||||
| FarmHub | ||||||
| Parnassus | ||||||
| Alliancepharma | St. Petersburg | |||||
| Gradis-pharma | ||||||
| Vlasta | ||||||
| Nadezhda-Farm | ||||||
| 1 - ASNA is classified as a group of classical pharmacy chains due to a deeper level of integration of business processes compared to associative type networks 2 - expert assessment 3 - the total number of points is indicated taking into account Pharmakor's pharmacies, the company's turnover for the period is not taken into account 4 - positions of pharmacy associations are calculated without taking into account the intersections of association members with each other. This rating shows the market share occupied by a combination of pharmacy chains and individual pharmacies |
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The list of the 100 largest enterprises in Russia includes several pharmacy chains. The largest companies in terms of profit, included in the Top 7, are the companies ASNA, Rigla, Pharmacy Chain 36.6, Implozia, Planet Zdorovya, Erkofarm Group of Companies, Neo-Pharm.
The last few years, amid the crisis, have shown the dynamics of falling demand for medicines. A study of the pharmaceutical retail market conducted by the analytical company KMPG in 2016 marked the beginning of a turning point - for the first time in several years, there was a positive increase in the revenue of pharmacy chains.
An analysis of the table shows that Russian pharmacy chains in the TOP 10 have strengthened their positions in the market. Their total share increased to 45%. The revenue ratio of 2016 to 2015 increased by 26.6%. These figures indicate ongoing market consolidation.
RNC Pharma, a well-known analytical observer, presented a rating of Russian pharmacy chains based on the results of the 1st quarter of 2017.
| Pharmacy chain | Central office location | Number of points as of 01.04. 2017 | Market share based on the results of the 1st quarter of 2017 |
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|---|---|---|---|---|---|---|
| The market as a whole, without LLO |
||||||
| Pharmacy chain 36.6 | ||||||
| Implosion | ||||||
| Planet Health | ||||||
| Erkafarm Group of Companies | ||||||
If we compare the results of 2016 and the 1st quarter of 2017, we can note some serious changes in the TOP-7. Rigla was ahead of Pharmacy Chain 36.6, Raduga flew out of the coveted seven - its place was taken by Neo-Pharm.
According to researchers, the pharmacy market is close to saturation - today it is increasingly difficult to find suitable space in places with a sufficient amount of traffic. Global investment programs promise certain opportunities, such as the renovation project in Moscow. However, it is local in nature. Increasing interest in the pharmaceutical market from non-pharmaceutical retail promises a serious increase in competition in the foreseeable future.
| Aggressive pricing policy players |
|
| The existing high concentration of pharmacy chains in the regions where the company operates |
|
| Future strengthening of the geographical presence of local players |
|
| Development of new formats by other players (pharmacy-supermarkets, discounters) |
|
| The emergence of new players, mainly regional ones, in the areas where the company operates |
|
| The emergence of new players, mainly federal ones, in the places of presence of the company |
|
| Business diversification by other players (for example, launching your own production or distribution) |
That is why leading players are rushing to capture the remaining space in the market - in 2017, according to a KMPG survey, 90% of large retail chains plan to expand their presence by opening new sales points. Geographical placement of pharmacy points is based on preliminary marketing research.
Some players speak out about the need to limit the market. More than 58% of pharmacy chain managers are in favor of legislatively limiting the number of pharmacies in the country, following the example of Western European countries: France, Spain and Germany.
There cannot be an oversupply of pharmacies in Russia - Nadezhda Sharavskaya, deputy head of the department for control of the social sphere and trade of the Federal Antimonopoly Service (FAS), expresses her disagreement with the heads of pharmacy chains. This is a commercial market, pharmacies are opening, which means they are profitable and there is demand, she argues. Many pharmacies operate in the capitals of the constituent entities; the restriction will lead to higher prices and interfere with competition, from her point of view.
Let's look at large Russian pharmacy chains that are considered leaders in the pharmaceutical market.
1. ASNA
ASNA is an association of independent pharmacies, which includes more than 5,000 pharmacies in many cities of Russia. ASNA company is new format among pharmacy chains, since the members of the association are independent pharmacies and pharmacy chains, united by a common goal - to make medicines, medical equipment and related products more accessible to customers. Today, the territory of the Association extends far beyond the capital, occupying the territory from the south to Kamchatka. ASNA is present in more than 100 cities and more than 60 constituent entities of the Federation. Regional representative offices have been opened in Nizhny Novgorod, Izhevsk, and Kazan. The company has 150 marketing contracts with manufacturers.
Legal address: 125368, Moscow, st. Mitinskaya, house 33, building 1
2. Rigla
Founded in 2001, the national pharmacy chain is the second largest in Russia by sales volume. As of December 2016, the network has 1,769 retail outlets in 47 regions of Russia. Rigla represents the retail segment of the business of the Protek Group of Companies, the largest pharmaceutical holding in Russia. The pharmacy chain's assortment includes 18 thousand assortment items, of which about 60% are parapharmaceutical products. The Rigla pharmacy chain includes 1,768 pharmacies at the end of 12 months of 2016. Pharmacies under the Be Healthy! brand. and Zhivika operate as discounters. At the end of 2016, there were 1,214 discount pharmacies in the network.
Legal address: 115201, Moscow, st. Chermyanskaya, 2
Information about the owners: parent company "Protek"
Capitalization: 23 billion rubles.
3. Pharmacy chain 36.6
PJSC Pharmacy Chain 36.6, founded in 1991, is a leading Russian company health and beauty retail sector. In January 2016, the largest shareholders of the Group and the controlling shareholders of A5 Pharmacy Retail Limited (the parent company of the A5 pharmacy chain) reached preliminary agreements on the merger of pharmacy chains. The merger was completed in December 2016 as part of an additional issue of shares of PJSC Pharmacy Chain 36.6, which remained the parent company of the merged group.
Legal address: 121096, Moscow, st. Vasilisa Kozhina, 1
Information about the owners: Major shareholders as of 2016:
- Palesora Ltd. (Cyprus, owners - Vladimir Kintsurashvili and Ivan Saganelidze) - 60.58%;
- Walgreens Boots Alliance - 15%.
Chairman of the Board of Directors - Ivan Saganelidze
General Director - Vladimir Kintsurashvili
Capitalization- 16.6 billion rubles.
Gross profit in 2016 was 10,766 million rubles.
Promotion rate - 6.99 rubles.
4. Implosion
Implosia LLC was registered in 1991. Since 1993, the main activity has been trade in medicines. In addition to our own pharmacies, goods are sold through pharmacies of other legal entities working under a partnership agreement. Sales of products through the pharmacy chain are carried out in the following regions of Russia: Samara, Saratov, Penza, Orenburg, Ulyanovsk regions, Moscow, Bashkiria, Tatarstan. On at the moment in Tatarstan and Bashkiria Implosia is represented only by partners, in other regions - both by its own pharmacies and by pharmacies of partner companies.
In 2003, the company was divided in order to minimize economic and legal risks into several companies: Farmerspektivu LLC, I-Trans LLC, I-Cube, Implosia-Finance LLC and others.
Legal address: 432072, ULYANOVSK, PR. GENERAL TYULENEV, 7
Information about the owners: Implosion has an opaque ownership structure. In the largest operator of the holding - LLC "Pharmperspektiva" ("FP") - Grant Bezruchenko controlled 27.19%. 24% of the company belonged to his brother Valery Bezruchenko. The brothers’ partners in “FP” were Dmitry Podgornov (27.19%) and Oleg Teplyakov (21.6%). After the death of the company’s founder, Grant Bezruchenko, in 2015, his share was purchased by the beneficiaries.
Capitalization: 15 billion rubles.
5. Planet Health
LLC "Planet Health" is one of the most actively growing players in the Russian pharmaceutical retail industry. Among the regions that the network is developing, the Perm Territory, the Kirov Region and the Udmurt Republic remain key. Moreover, in Perm, “Planet Health” is an unconditional monopolist. The network also operates in Moscow and the Moscow region, St. Petersburg and other large regions.
Legal address: 614068, PERM REGION, CITY OF PERM, LENIN STREET, 83/34
Information about the owners: Founder - individual Alexey Evgenievich Kislov
6. Erkafarm Group of Companies (Doctor Stoletov & Ozerki)
The ERKAFARM group of companies was founded in 1994. Today, the group includes more than 360 pharmacies in 12 regions of the Russian Federation, operating in various formats from discounters to pharmaceutical markets. "ERKAFARM" includes several pharmacy chains: "Doctor Stoletov", "Ozerki", "Good Pharmacy", "People's Pharmacy" and "Pharmacy No. 1". The total number of employees of ERKAFARM Group of Companies is more than 3,500 people.
Legal address: 107005, Moscow, Bakuninskaya Street, 14
Information about the owners: Individual, Ivan Givievich Saganelidze, Prestige Market LLC, Proftekhgroup LLC, Russian Trust Alliance “Your Savings” LLC, Sana-MT LLC, Enterprise Service LLC
7. Neo-farm
The history of NEOPHARM Group of Companies began as a small family business - with several pharmacy kiosks in the Krasnogorsk district of the Moscow region. Today, NEOPHARM Group of Companies includes almost 300 pharmacies under two brands - NEOPHARM and STOLICHKI, with more than 3,000 employees and over 25 million customers a year.
Legal address: 123423, Moscow, Otkrytoe highway, 2, bldg. 12
