The analytical company RNC Pharma ® presents a rating of Russian pharmacy chains based on the results of 1-3 quarters. 2017 Nov.
The third quarter in relation to the Russian pharmaceutical retailer was rife with a variety of events. We had to witness both all kinds of transactions, often quite large ones, and the resumption of rhetoric on certain regulatory issues, in particular, the possibility of selling drugs in supermarkets.
The issue of expanding the points of sale of medicinal products, which has been intermittently since 2014, has already become quite fed up. Neither representatives of the professional pharmaceutical community can find any obvious expediency in this innovation, nor, we would venture to assume, representatives of the "big retail", which are slowly but surely developing their own projects in the pharmaceutical retail. Nevertheless this question rises from the bowels of the Government with enviable constancy.
Deals, the number of which seems to only increase every day, have also become an almost common occurrence. It is also difficult to suspect originality of the change of owners of Classic and Pharmacor, even if adjusted for the decent size of the companies, if only due to the striking similarity of the fate of these companies prior to 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 background of quite obvious signs of stagnation in the Russian pharmaceutical market, looks very symptomatic.
Tab. TOP pharmacy chains by share in the retail-commercial drug market in Russia based on the results of 1-3 quarters. 2017 Nov.
| Pharmacy chain | Headquarters location | Number of points as of 01.10.2017 | Market share by the results of 1-3 quarters 2017,% |
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| not LP | market as a whole, without LLO |
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| Classic pharmacy chains |
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| ASNA 1 | ||||||
| Rigla 2 | ||||||
| Pharmacy chain 36.6 3 | ||||||
| Erkafarm Group of Companies | ||||||
| Implosion 2 | ||||||
| Pharmacies operating under the Health Planet brand | ||||||
| Neo-Pharm | ||||||
| Farmland | ||||||
| Pharmaimpex 2 | ||||||
| Pharmacy Timer | ||||||
| April | Krasnodar | |||||
| Pharmacopoeia - Your Doctor | ||||||
| Melody of health | Novosibirsk | |||||
| Vita | ||||||
| Maksavit (including 36.7C) | N.Novgorod | |||||
| Pharmacy associations 4 |
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| Propharmacy | ||||||
| St. Petersburg | ||||||
| SPRING | St. Petersburg | |||||
| Apteka.ru | Novosibirsk | |||||
| FarmHub | ||||||
| Parnassus | ||||||
| Alliancepharma | St. Petersburg | |||||
| Gradis-Pharma | ||||||
| Vlasta | ||||||
| Nadezhda-Farm | ||||||
| 1 - ASNA belongs to the group of classic pharmacy chains due to the deeper level of integration of business processes compared to associative-type chains 2 - expert judgment 3 - the total number of outlets is indicated taking into account Pharmacora 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 the members of the associations with each other. This rating shows the market share occupied by the union of pharmacy chains and single pharmacies |
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Top-7 federal pharmacy chains
Among federal pharmacy chains, the first place is occupied by the Association of Independent Pharmacies (ASNA), which has 5,637 pharmacies and occupies 9.8% of the share of regional markets where it is represented. Despite the name, the creators of the rating traditionally rank it among federal networks.
The second place, according to the expert assessment, went to the Rigla chain with 1,846 pharmacies and 1.7% of the market share. The third place is taken by the Melodiya Zdorovya pharmacy chain (a subsidiary of Katren) with 1,063 pharmacies and the same market share as Rigla (1.7%).
| Federal pharmacy chains | ||||
| Rating | Pharmacy chain | The total share of the network in the regions of presence **,% | ||
| 1 | ASNA | 5 637 | 9,8 | 96,3 |
| 2 | Rigla * | 1 846 | 1,7 | 55,0 |
| 3 | Melody of health | 1 063 | 1,7 | 49,9 |
| 4 | Implosion * | 2 485 | 1,2 | 42,6 |
| 5 | Pharmacy Timer | 585 | 3,3 | 39,3 |
| 6 | Rainbow (including First Aid) | 1 030 | 2,4 | 33,9 |
| 7 | Pharmaimpex * | 553 | 2,0 | 26,2 |
* Expert judgment by RNC Pharma
** The total share of the network of pharmacies of the total volume of regional markets in which it is represented.
Top 7 multi-regional pharmacy chains
First place among multi regional networks occupies "36.6", which has 1,755 pharmacies and occupies 18.1% of the market in the regions of presence. The second place is taken by pharmacies under the Zdorovya Planet brand with 1,246 pharmacies and a 3.8% market share. In third place is Erkafarm with pharmacies under the brands Doctor Stoletov and Ozerki. There are 400 pharmacies of these brands in the regions, which occupy 6.6% of the market share.
| Multi-regional pharmacy chains | ||||
| Rating | Pharmacy chain | Number of points as of 01.07.2017 | Rating indicator (point) | |
| 1 | Pharmacy chain 36.6 | 1 755 | 18,1 | 70,3 |
| 2 | Pharmacies operating under the Health Planet brand | 1 246 | 3,8 | 55,3 |
| 3 | 400 | 6,6 | 48,4 | |
| 4 | Maksavit (including 36.7C) | 334 | 4,3 | 47,2 |
| 5 | Farmland | 758 | 12,7 | 46,3 |
| 6 | Neo-Pharm | 366 | 7,9 | 44,9 |
| 7 | Vita | 728 | 1,9 | 35,8 |
* The total share of a network of pharmacies of the total volume of regional markets in which it is represented.
Top 10 pharmacy associations
Among the pharmacy associations, the places were distributed as follows:
The first place is given to the association "ProApteka", which includes 2,340 pharmacies. The second place is occupied by the service of ordering goods from the pharmacy assortment “Pharmacy. ru ”, which has 14 341 pharmacies throughout the country and is many times ahead of other representatives of the rating in terms of this indicator. The third place is taken by the Medico-Pharmaceutical Association of Small Businesses (MFO), which has 1,608 pharmaceutical outlets.
| Pharmacy associations | ||||
| Rating | Pharmacy chain | Number of points as of 01.07.2017 | The total share of the network in the regions of presence *,% | Rating indicator (point) |
| 1 | Propharmacy | 2 340 | 3,3 | 68,2 |
| 2 | Apteka.ru | 14 341 | 0,6 | 54,6 |
| 3 | IFIs | 1 608 | 4,3 | 51,6 |
| 4 | SPRING | 674 | 2,4 | 33,6 |
| 5 | FarmHub | 276 | 1,6 | 20,0 |
| 6 | Nadezhda-Farm | 130 | 1,2 | 19,9 |
| 7 | Pharmaline | 194 | 2,4 | 14,4 |
| 8 | Parnassus | 230 | 2,0 | 12,8 |
| 9 | A + | 76 | 0,3 | 7,3 |
| 10 | Alliancepharm | 117 | 1,9 | 5,7 |
* The total share of a network of pharmacies of the total volume of regional markets in which it is represented.
TOP-15 pharmacy chains by the size of the average check based on the results of the 1st – 2nd quarter. 2017 Nov.
A rating by the size of the average check was also presented. According to this parameter, the first place is occupied by the Omnipharm network (5,289 rubles). In second place is “Pharmacy. ru "with an average check of 1,662 rubles. The third place is occupied by "Samson-Pharma", where the average check is equal to 1,440 rubles.
Top-15 pharmacy chains by the size of the average check according to the results of the 1st – 2nd quarter. 2017 Nov. |
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| Rating | Pharmacy chain | Average check size, rub. | Number of receipts per 1 pharmacy, thousand units | The dynamics of the number of checks relative to the 1st – 2nd quarter. 2016,% |
| 1 | Omnipharm | 5 289 | 5,6 | 1,1 |
| 2 | Apteka.ru | 1 662 | 0,2 | 53,1 |
| 3 | Samson-Pharma | 1 440 | 52,6 | 1,8 |
| 4 | Zdorov.ru | 765 | 126,3 | - |
| 5 | GC Erkafarm (Doctor Stoletov & Ozerki) | 750 | 48,9 | 21,2 |
| 6 | Pharmacy chain 36.6 | 682 | 23,2 | -8,6 |
| 7 | Pharmacy Dialog | 669 | 124,6 | 37,5 |
| 8 | Neo-Pharm | 639 | 51,1 | 42,9 |
| 9 | New pharmacy (incl. Minitsen) | 631 | 52,1 | 17,7 |
| 10 | Soviet pharmacy | 630 | 15,8 | 93,5 |
| 11 | O'Vita | 589 | 37,2 | -20,4 |
| 12 | Duty pharmacies | 580 | 42,6 | 3,5 |
| 13 | Evalar | 553 | 43,3 | -5,0 |
| 14 | Pharmeconom | 546 | 71,1 | 17,1 |
| 15 | Well of Health (including LekOptTorg) | 542 | 66,8 | 52,7 |
As one of the central topics for the Russian pharmaceutical retail, at the beginning of this year, the issue of permitting the sale of drugs in non-pharmaceutical retail was again raised. It would seem that the professional community had given the initiative a very unambiguous assessment even earlier, and we can put an end to it. However, the regulators decided otherwise. In December 2017, a draft federal law was submitted for public discussion.
Probably, no one needs to explain that the Federal Law is a "serious thing", and since the draft document has appeared, the likelihood of its adoption should be considered as very high. So, the statement of several large representatives of the Russian pharmaceutical retailer about the risk of closing a significant share of their pharmacies seriously agitated both the professional community and the general public. If this is the case for the leaders, then what will happen to the companies of the second and third tier?
However, in the "big" retail, passions are also boiling serious, echoes of these events were expressed in the sale of a blocking stake in the Magnit network by the founder of the company, Sergei Galitsky, to VTB Bank.
We will not quote "conspiracy theories" about the incipient process of nationalization of the global retail market, these versions hardly have a right to exist, but still, the growing role of the banking sector in retail management, incl. pharmaceutical, difficult to ignore. In particular, this year, noticeable changes have taken place in the management structure of Pharmacy Chain 36.6, some of them, obviously, were initiated by the structures of MKB.
Table: TOP pharmacy chains by share in the retail-commercial drug market in Russia at the end of 2017
| № | Pharmacy chain | Office | Number of points | Share,% | ||
|---|---|---|---|---|---|---|
| LP | not LP | Generally | ||||
| Classic pharmacy chains | ||||||
| 1 | ASNA 1 | Moscow | 8 365 | 13,9 | 12,7 | 13,7 |
| 2 | Pharmacy chain 36.6 2 | Moscow | 1 756 | 5,0 | 4,8 | 5,0 |
| 3 | Rigla 3 | Moscow | 2 039 | 4,9 | 5,1 | 4,9 |
| 4 | Erkafarm Group of Companies | Moscow | 1 240 | 3,7 | 3,5 | 3,6 |
| 5 | Implosion 3 | Samara | 3 195 | 3,3 | 3,4 | 3,3 |
| 6 | Planet Health | Permian | 1 403 | 2,8 | 1,7 | 2,6 |
| 7 | Neo-Pharm | Moscow | 464 | 2,4 | 1,4 | 2,2 |
| 8 | Farmland | Ufa | 950 | 1,7 | 1,8 | 1,7 |
| 9 | Pharmacopoeia - Your Doctor | Moscow | 892 | 1,6 | 1,5 | 1,6 |
| 10 | Pharmacy Timer | Permian | 657 | 1,6 | 1,3 | 1,5 |
| 11 | Pharmaimpex | Izhevsk | 738 | 1,5 | 1,8 | 1,6 |
| 12 | April 3 | Krasnodar | 727 | 1,5 | 2,0 | 1,6 |
| 13 | Melody of health | Novosibirsk | 1 262 | 1,4 | 1,6 | 1,5 |
| 14 | Vita | Samara | 887 | 1,3 | 1,7 | 1,4 |
| 15 | Maksavit (including 36.7C) 3 | N.Novgorod | 389 | 1,3 | 0,5 | 1,1 |
| Pharmacy associations 4 | ||||||
| 1 | Propharmacy | Moscow | 3 928 | 4,1 | 2,9 | 3,9 |
| 2 | IFIs | St. Petersburg | 2 232 | 3,0 | 3,2 | 3,1 |
| 3 | SPRING | St. Petersburg | 670 | 1,0 | 1,4 | 1,1 |
| 4 | Apteka.ru | Novosibirsk | 15 027 | 0,5 | 1,2 | 0,7 |
| 5 | FarmHub | Moscow | 321 | 0,5 | 0,5 | 0,5 |
| 6 | Parnassus | Moscow | 278 | 0,4 | 0,5 | 0,4 |
| 7 | Alliancepharma | St. Petersburg | 198 | 0,3 | 0,3 | 0,3 |
| 8 | GradisFarma 3 | Moscow | 240 | 0,3 | 0,4 | 0,3 |
| 9 | Vlasta | Voronezh | 194 | 0,3 | 0,3 | 0,3 |
| 10 | Nadezhda-Farm | Tambov | 156 | 0,2 | 0,2 | 0,2 |
| 1 - ASNA belongs to the group of classic pharmacy chains due to the deeper level of integration of business processes compared to associative-type chains 2 - the total number of outlets is indicated taking into account Pharmacora pharmacies, the company's turnover for the period is not taken into account 3 - expert judgment 4 - positions of pharmacy associations are calculated without taking into account the intersections of the members of the associations with each other. This rating shows the market share occupied by the union of pharmacy chains and single pharmacies |
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The list of 100 largest enterprises in Russia includes several pharmacy chains. The largest in terms of profit included in the Top 7 are ASNA, Rigla, Pharmacy Chain 36.6, Implozia, Planeta Zdorovya, Erkopharm Group of Companies, Neo-Pharm.
The last few years in the context of the crisis have shown the dynamics of the fall in demand for drugs. The research 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.
Analysis of the table shows that Russian pharmacy chains in the TOP-10 have strengthened their positions in the market. Their combined share increased to 45%. The ratio of revenue in 2016 to 2015 increased by 26.6%. These figures indicate the ongoing consolidation of the market.
RNC Pharma, a well-known analytical analyst, has presented a rating of Russian pharmacy chains based on the results of the 1st quarter of 2017.
| Pharmacy chain | Headquarters location | The number of points as of 01.04. 2017 Nov. | Market share at the end of the 1st quarter of 2017 |
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|---|---|---|---|---|---|---|
| Market as a whole, without LLO |
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| 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 significant changes in the TOP-7. Rigla outstripped the Pharmacy Chain 36.6, Raduga flew out of the coveted seven - its place was taken by Neo-Pharm.
According to the researchers, the pharmacy market is close to saturation - today it is more and more difficult to find suitable premises in places with sufficient traffic. Certain opportunities are promised by global investment programs, such as the renovation project in Moscow. However, it is local in nature. The growing interest in the pharmaceutical market from the non-pharmaceutical retail sector promises a serious increase in competition for the foreseeable future.
| Aggressive pricing policy of players |
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| The existing high concentration of pharmacy chains in the regions of the company's presence |
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| Future strengthening of the geographic presence of local players |
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| Development by other players of new formats (pharmacies, supermarkets, discounters) |
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| The emergence of new players, mainly regional in the places of the company's presence |
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| The emergence of new players, mainly federal in the places of the company's presence |
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| Business diversification by other players (for example, launching own production or distribution) |
That is why leading players are rushing to grab the remaining market space - in 2017, according to a KMPG survey, 90% of large retail chains plan to expand their presence by opening new points of sale. The geographical location of pharmacy points is carried out on the basis of preliminary marketing research.
Some players speak out about the need to limit the market. More than 58% of heads of pharmacy chains are in favor of legislative limitation of the number of pharmacies in the country, following the example of Western European countries: France, Spain and Germany.
There can be no oversupply of pharmacies in Russia - Nadezhda Sharavskaya, deputy head of the social sphere and trade control department of the Federal Antimonopoly Service (FAS), expresses her disagreement with the heads of pharmacy chains. This is a commercial market, pharmacies are opening, so they are profitable and they have a demand, she argues. Many pharmacies operate in the capitals of the constituent entities, the restriction will lead to higher prices and hinder competition, from its point of view.
Consider the large pharmacy chains in Russia, which are 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 buyers. 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 offices are open in Nizhny Novgorod, Izhevsk, Kazan. The company has 150 marketing contracts with manufacturers.
Legal address: 125368, Moscow, st. Mitinskaya, house 33, building 1
2. Wrigla
Founded in 2001, the national pharmacy chain is the second largest in Russia in terms of sales. As of December 2016, the chain has 1,769 retail outlets in 47 regions of Russia. Rigla represents the retail business segment of the Protek Group of Companies, the largest pharmaceutical holding in Russia. The assortment of the pharmacy chain includes 18 thousand assortment positions, of which about 60% are parapharmaceutical products. Pharmacy chain "Rigla" includes 1768 pharmacies at the end of 12 months of 2016 Pharmacies under the brand "Bud Zdorov!" and Zhivika operate in the discounter format. At the end of 2016, there were 1,214 discounter pharmacies in the chain.
Legal address: 115201, Moscow, st. Chermyanskaya, 2
Information about the owners: parent company"Protek"
Capitalization: RUB 23 billion
3. Pharmacy chain 36.6
PJSC Pharmacy Chain 36.6, founded in 1991, is a leading Russian company sectors retail goods for health and beauty. 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 the pharmacy chains. The merger was completed in December 2016 as part of an additional issue of shares in 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 manager- Vladimir Kintsurashvili
Capitalization- 16.6 billion rubles.
Gross profit in 2016 10766 mln RUB
Promotion rate - 6.99 rubles.
4. Implosion
Implosion LLC was registered in 1991. Since 1993, trade in medicines has become the main activity. In addition to our own pharmacies, the sale of goods takes place through pharmacies of other legal entities working under a partnership agreement. Sales of products through the pharmacy network are carried out in the following regions of Russia: Samara, Saratov, Penza, Orenburg, Ulyanovsk regions, Moscow, Bashkiria, Tatarstan. On this moment in Tatarstan and Bashkiria Implosion is represented only by partners, in other regions - both by its own pharmacies and by the pharmacies of partner companies.
In 2003, the company was divided in order to minimize economic and legal risks into several companies: LLC “Pharmperspektivu”, LLC “I-Trans”, “I-cube”, LLC “Implosion-finance” and others.
Legal address: 432072, ULYANOVSK, PR. GENERAL TYULENEV, D. 7
Information about the owners: Implosion has an opaque ownership structure. V the largest operator 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 in 2015 of the founder of the company, Grant Bezruchenko, his share was bought out by the beneficiaries.
Capitalization: RUB 15 billion
5. Planet of health
LLC "Planet of Health" is one of the most actively growing players in the Russian pharmaceutical retailer. Perm Territory, Kirov Region and Udmurtia... Moreover, in Perm "Planet of Health" is an absolute monopolist. The network also operates in Moscow and the Moscow region, St. Petersburg and other large regions.
Legal address: 614068, KRAY PERMSKY, CITY PERM, STREET LENIN, 83/34
Information about the owners: Founder - natural person Kislov Alexey Evgenievich
6.GK Erkafarm (Doctor Stoletov & Ozerki)
The group of companies "ERKAFARM" 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 pharmacies. ERKAFARM includes several pharmacy chains: Doctor Stoletov, Ozerki, Horoshaya Apteka, Narodnaya Apteka and Apteka No. 1. The total number of employees of the ERKAFARM Group is more than 3500 people.
Legal address: 107005, Moscow, Bakuninskaya Street, 14
Information about the owners: Individual, Saganelidze Ivan Givievich, Prestige Market LLC, Proftekhgroup LLC, Russian Trust Alliance Vashi Savings LLC, Sana-MT LLC, Enterprise Service LLC
7. Neo-farm
The history of NEOPHARM Group of Companies began as a small family business - from several pharmacy kiosks in the Krasnogorsk District of the Moscow Region. Today, NEOPHARM Group of Companies comprises almost 300 pharmacies under two brands - NEOPHARM and STOLICHKI, it is more than 3000 employees and over 25 million customers a year.
Legal address: 123423, Moscow, Otkrytoe highway, 2, bldg. 12
Top 20 pharmacy chains in Russia Amera Carlos 2019-03-20 http: //site/upload/iblock/84d/84dedc353527cef46fccc7c59c7faf76.pngThe Russian retail pharmacy market is going through 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, the growth in sales of pharmaceuticals in packs in Russia increased by 6% compared to 2017 to 5.6 billion. The volume of sales in money by 7% worth more than 1.256 trillion rubles, according to the research company AlphaRM.
At RNC Pharma, the data are 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 packs.
You can read Nikolay Bespalov, Development Director of the analytical company RNC Pharma, about why analysts from different research agencies differed greatly in the calculations of drug sales in Russia at the end of 2018.
As of January 1, 2019, more than 65.6 thousand pharmacies were operating 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 Q4 2018. The volume of revenue in December amounted to 111.2 billion rubles (+ 4%), and the average revenue per one - 1.7 million rubles (+ 1% to December 2017), according to the report AlphaRM.
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 terms and 7% more in units.
If we compare the ratings of pharmacy chains in 2018 and 2017, then changes have taken place in the top three. Group 36.6 moved down two ranks, yielding the second place to the Erkafarm Group of Companies, and the third - to the Samara chain Implozia. Rigla (part of PROTEK Group of Companies) remains the leader in terms of total sales.
As for the trends, in 2018 the market consolidation, which has been going on for several years, and the withdrawal of small regional chains continued. Pharmacy chains continued to merge into various alliances, which peaked in 2017, to strengthen purchasing power and consolidate manufacturers' orders for marketing services. Because manufacturers pay networks to promote their products.
By the way, recently the National Pharmaceutical Chamber (NFP) union asked the Ministry of Industry and Trade to regulate the interaction between pharmacy chains and manufacturers, since pharmacies in 60% of cases impose drugs on customers, with the manufacturers of which they have signed marketing agreements, Kommersant newspaper reported.
The NFP proposes to prohibit the priority recommendation of a particular drug to customers within the framework of marketing agreements between pharmacy chains and manufacturers. If the prohibition is violated, it is proposed to suspend the certificate of a specialist or a certificate of accreditation of a pharmacist for a period of up to 6 months. The corresponding mandatory checks must be included in the regulations for the test purchase of Roszdravnadzor, the letter says. It follows from it that otherwise the patient acquires the drug imposed on him, and not recommended by the doctor.
Pavel Rasshchupkin Director of Analytics, RNC Pharma
One of the main trends for the pharmaceutical retail sector in 2018 was the general stagnation of the segment. Against the background of this recession, we observed enough a large number of M&A transactions. Of course, local drugstore chains became the main targets of transactions.
Among the market consolidators are Farmland, Rigla and other players. But some changes were noticed among the major players as well. For example, three players from the top 20 at once - Planet of Health, Pharmacist + and Maksavit - have united into a single organization under the auspices of the Planet of Health network. The New Pharmacy network has joined the IRIS partnership.
This process It is quite understandable - earlier M&A deals were in the nature of local strengthening of individual players, now, after the increase in the number of members of the 1000+ pharmacies club, for equal competition more serious steps are required to combine the efforts of the chains.
In addition, it is obvious that what more network, especially profitable terms she can get supplies from distributors and marketing contracts from manufacturers.
The next trend is associated with the latter, which began to unfold at the end of 2018. A proposal was made to limit the maximum bonus for marketing in the pharmacy segment. By the way, proposals are already being voiced to completely prohibit this type of cooperation between manufacturers and pharmacy retail.
Potentially, this can seriously hit the retail business, especially those players who built their networks primarily using 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, the latter in 2018 also actively revised the conditions for the payment of bonuses and tightened control over this type of activity. This is partly a "merit" of the participants in the pharmacy market.
Some companies actively practiced draining goods back to the wholesale segment to fulfill mandatory conditions marketing contracts and receiving bonuses.
But at the same time, there is a quite definite understanding that the state is strengthening its control over the segment. In addition to tightening, the industry is also under pressure from the active development of distance selling of drugs, causing the outflow of parapharmaceutical (non-drug) assortment from pharmacies. Namely, this category is one of the most marginal. So far, it is officially forbidden to sell drugs in Russia via the Internet, but individual market participants have found a way to circumvent the ban (the Ozon online store sells drugs through a pharmacy on the basis of a pharmaceutical license, and retailer's couriers deliver drugs on behalf of buyers - Ed.).
Summing up, we can conclude that in 2019 and beyond, it will be more and more difficult for individual pharmacies and small chains to survive in the pharmacy market. Consolidation of the segment is already tangible (the top 20 accounts for more than 50%), and this year this figure will grow even more.
And of course, the higher the competition, the more difficult the struggle for business profitability is. In addition, so far (as of the end of the 1st quarter of 2019) we do not see serious prerequisites for the recovery of market growth in monetary terms, not to mention natural, which can also hardly add optimism to market participants.
Top 20 pharmacy chains in Russia in 2018
1. "Rigla" (Moscow). The pharmacy chain is part of the PROTEK Group of Companies, which operates in all major segments of the pharmaceutical industry: production of medicines, distribution of pharmaceuticals and goods for beauty and health, as well as retail sales... The audited consolidated revenue of the group based on the results of 2017 amounted to RUB 258.5 billion.
In 2018, the Rigla pharmacy chain expanded with 426 pharmacies in Russia, including through mergers and acquisitions, and as of January 1, 2019, there were 2,457 thousand pharmacies. The average check is 489.93 rubles. The company's share in the retail pharmaceutical market at the end of 2018 amounted to 5.46%.
2. GC "Erkafarm" (Moscow). Erkafarm Group is one of the leaders in the Russian pharmaceutical market. It was founded in 1994. The group includes 1,266 thousand pharmacies in eight federal districts operating in various formats - from discounters to pharmacies under the brands Doctor Stoletov, Ozerki, Horoshaya Apteka, Narodnaya Apteka, Apteka No. 1, Raduga "," Pervaya pomoshch "," Ladushka "and others. Every month the company's pharmacies serve more than 6 million customers. Since 2018, the company has begun to develop a new drogerie format for itself under the Ozerki brand in a low price segment. The first stores were opened in St. Petersburg and 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 Implozia network unites more than 2.5 thousand outlets, of which more than 60% of the pharmacies are either partner (connected to Implosion software for purchases) or franchised. The total revenue in 2018 is 46.5 billion rubles, the market share is 3.83%.
4. Group 36.6 (Moscow). Pharmacy Chain 36.6 Group of Companies was founded in 1991. The company operates chains under the names 36.6, Gorzdrav and A.v.e., the total number of which has exceeded 1.314 thousand points. The company's share in the retail drug market was 4.4%. At the end of 2018, the chain lost its positions in the ranking of the largest chains, moving from the second to the fourth position. During the year, the group of companies closed more than 400 pharmacies in the country. Obviously, we are talking about unprofitable points, the total number of which is not disclosed in the company. Thus, the new top management is trying to bring the retail business out of the crisis, which accounts for the bulk of the company's revenue. 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 has a current EBITDA margin of 4.8% for each pharmacy.
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 Territory, the chain is the 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 develops larger, in contrast to competitors, formats - hypermarkets and supermarkets. During the year, she opened 124 objects. Its share on the Russian pharmaceutical market is estimated at 2.87%.
7. "Vita" (Samara). The Vita pharmaceutical company operates almost a thousand pharmacies. The company develops two brands: Vita Express and My Pharmacy low prices". During the year, the company opened more than 600 pharmacies, and its share of the pharmaceuticals market increased from 1.35% to 2.68%.
8. "April" (Krasnodar). The April pharmacy chain consisted of 1,335 pharmacies under the April and Pharmacy warehouse brands (economy segment) as of January 1, 2019. The total share of the company 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 Kazanskie Apteki (112 outlets).
9. "Farmland" (Ufa). The Bashkir company has been operating since 1997. In 2018, it expanded its network from 954 to 1114 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 on the Russian pharmaceutical market increased from 1.77% to 2.1%. The 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, cooperating mainly with hospitals. The first pharmacy was opened in Udmurtia in 1998. At the beginning of 2019, the chain consisted of 757 pharmacies (+28 outlets per year), its turnover in 2018 amounted to 19.4 billion rubles, and its share in the retail market of pharmaceuticals in Russia was 1.6%.
11. "Pharmacopoeia & Your Doctor" (Tula). The Pharmacopeyka pharmacy network is a franchise project of the pharmaceutical distributor Medexport - Severnaya Zvezda LLC. "Pharmacopeyka", numbering more than 600 outlets, operates in Altai, 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 outlets 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 chains in 2018 amounted to 18.2 billion rubles, the average check was 440 rubles, and the market share was 1.5%.
12. "Pharmacies from a warehouse" (Perm). Its owners, Andrei Godovalov and Nikolay Shavrin, have been engaged in the wholesale of pharmaceuticals since the 1990s; the Pharmacy Ot Sklad network (a segment of discounters) has been developing since 2009. Now the network is represented in 23 regions of Russia and has 767 pharmacies (+83 pharmacies). At the end of 2018, its turnover amounted to 14.6 billion rubles, the average check was 463 rubles, and the market share was 1.2%.
13. Group "36.7S & Maksavit" (Nizhny Novgorod). Pharmacies under the brand name "36.7" have been operating since 1998. In 2010, the company began to develop another brand - discounter 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 was 14.2 billion rubles, the average check 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 it is present in 53 regions of Russia and has 766 pharmacies (+43 points). These are mainly pharmacy supermarkets with open display. The turnover at the end of 2018 amounted to 13.1 billion rubles, the average check was 409.58 rubles, the market share was 1.08%.
15. "Mega Pharm" (Moscow). Pharmacy company "Mega Pharm" (pharmacies "A-Mega", "Yes, healthy!", As well as premium-class 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 Sergey 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 check was RUB 303.51, and the market share increased over the year from 0.39 to 0.95%. At the end of 2018, the network's turnover exceeded RUB 1.5 billion. Mega Pharm is developing in partnership with X5, Azbuka Vkusa, Russian Railways, and the Elena Malysheva Medical Center. The pharmacy retailer plans to open more than 4 thousand retail outlets by 2021.
16. "Pharmacist +" (Rostov-on-Don). The network of pharmacies belongs to the pharmaceutical distributor CJSC Pharmacist, which has been operating on the market for over 25 years. On the basis of the distributor, a warehouse for 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 check was 460 rubles, the market share was 0.87%. The turnover at the end of 2018 exceeded 10.6 billion rubles.
17. "New pharmacy" and "Pharmacy minicen" (Khabarovsk). Little is known about these pharmacy companies. Network sites are also uninformative. According to SPARK, the operating legal entity of the Novaya Apteka chain is Superpharma LLC, owned by Igor Zhukovich (48%), Igor Boyarkin (30%) and Artem Zhukovich (22%). The operational legal entity of Apteki minitsen is LLC Avers apteka minitsen, which has the same owners and the same distribution of shares. The total turnover of the two chains 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 check 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 over 25 years and are part of the Nevis Trading House holding, established in 1992. It also includes several companies: production of feminine hygiene products under the Angelina trademark, cosmetic detergents under the Vuoksa trademark, and cosmetics with pheromones under the Dr.VILSH trademark. At the end of 2018, the turnover of Nevis pharmacies exceeded 8.3 billion rubles, the number of outlets increased from 428 to 457 over the year, the average check slightly decreased - 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 belongs to Sergei Kagramanov (45%), Mikhail Akimov (33%), Artem Pyshnyak (12%), Yuri Tikhohod (5%) and Olga Shcherbinkina (5%). At the end of 2018, the network's turnover amounted to 7.4 billion rubles, the average check was 1.3 thousand rubles, and the number of outlets increased from 52 to 63.
20. "Aloe" (St. Petersburg). The Aloe pharmacy chain is part of the BSS pharmaceutical holding, which has been developing since 2014. At the end of 2018, it numbered 268 pharmacies (+22 pharmacies). Initially, the network developed within the North-West region, but later expanded the boundaries of its presence and today it is present in the Urals and Central Federal Districts. The turnover at the end of 2018 reached 6.9 billion rubles, the average check was 490 rubles, and the share was 0.57%.
