Pharmacy chains market share. MarketMedia has studied which pharmacy chains in Russia are in the top ten largest in terms of the number of outlets
The list of 100 largest enterprises in Russia includes several pharmacy chains. The largest profits in the Top 7 are ASNA, Rigla, Pharmacy Chain 36.6, Implozia, Health Planet, Erkopharm Group, Neo-Pharm.
The last few years in a 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 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 observer, has 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 on 01.04. 2017 | Market share in Q1 2017 |
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|---|---|---|---|---|---|---|
| Market as a whole, without LLO |
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| Pharmacy chain 36.6 | ||||||
| implosion | ||||||
| Planet Health | ||||||
| GC Erkapharm | ||||||
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 the Pharmacy Chain 36.6, Raduga flew out of the coveted seven - Neo-Pharm took its place.
According to the researchers, the pharmacy market is close to saturation - today it is more and more difficult to find suitable areas in places with enough traffic. Certain opportunities are promised by global investment programs, such as the renovation project in Moscow. However, it is local. Increasing interest in the pharmaceutical market from non-pharmaceutical retailers promises a serious increase in competition in the foreseeable future.
| Aggressive player pricing |
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| Existing high concentration of pharmacy chains in the regions where the company operates |
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| Future strengthening of the geographical presence of local players |
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| Development of new formats by other players (drugstores-supermarkets, discounters) |
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| The emergence of new players, mainly regional ones in the places of the company's presence |
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| 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 the leading players are rushing to capture 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 about the need to limit the market. More than 58% of pharmacy chain managers are in favor of legally limiting the number of pharmacies in the country, following the example of Western European countries: France, Spain and Germany.
There can be no overabundance 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, which means they are profitable and they have a demand, she argues. Many pharmacies operate in the capitals of the subjects, the restriction will lead to higher prices and hinder competition, from her point of view.
Consider the large pharmacy chains in Russia, which are listed as 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 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. To date, the territory of the Association extends far beyond the capital, covering the territory from the south to Kamchatka. ASNA is present in more than 100 cities and more than 60 subjects of the Federation. Regional representative offices are opened in Nizhny Novgorod, Izhevsk, 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 in terms of sales. As of December 2016, the network has 1,769 retail outlets in 47 regions of Russia. Rigla represents the retail business segment of the Protek Group, the largest pharmaceutical holding in Russia. The assortment of the pharmacy network is 18 thousand assortment positions, of which about 60% are parapharmaceutical products. The pharmacy chain "Rigla" includes 1768 pharmacies at the end of 12 months of 2016. Pharmacies under the brand "Be healthy!" and Zhivika operate as discounters. At the end of 2016, there were 1,214 discounter 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 in the 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 the pharmacy chains. The merger was completed in December 2016 as part of an additional share issue of Pharmacy Chain 36.6 PJSC, which remained the parent company of the combined 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 RUB 10,766 million
The share price is 6.99 rubles.
4. Implosion
Implozia LLC was registered in 1991. Since 1993, the main activity has been the sale of medicines. In addition to own pharmacies, the sale of goods occurs through pharmacies of other legal entities working under a partnership agreement. The sale of products through the pharmacy network is carried out in the following regions of Russia: Samara, Saratov, Penza, Orenburg, Ulyanovsk regions, Moscow, Bashkiria, Tatarstan. On the this moment in Tatarstan and Bashkiria, Implozia 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 into several companies in order to minimize economic and legal risks: Pharmperspektiva LLC, I-Trans LLC, I-Kub, Implozia-Finance LLC and others.
Legal address: 432072, ULYANOVSK, PR. GENERAL TYULENEV, D. 7
Information about the owners: Implosion has an opaque ownership structure. Grant Bezruchenko controlled 27.19% in the holding's largest operator, Farmperspektiva LLC ("FP"). 24% of the company belonged to his brother Valery Bezruchenko. The brothers' partners in the "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: 15 billion rubles
5. Planet health
LLC Planeta Zdorovya is one of the most actively growing players in the Russian pharmaceutical retail. Among the regions that the network develops, the key ones are the Perm Territory, the Kirov Region and the Udmurt Republic. Moreover, in Perm "Planet of 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, STREET LENINA, 83/34
Information about the owners: Founder - individual Kislov Alexey Evgenievich
6. GC Erkapharm (Doctor Stoletov & Ozerki)
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 3500 people.
Legal address: 107005, Moscow, Bakuninskaya Street, 14
Information about the owners: Individual, Saganelidze Ivan Givievich, Prestige Market LLC, Proftehgroup LLC, Russian Trust Alliance Your Savings LLC, Sana-MT LLC, Enterprise Service LLC
7. Neo-pharm
The history of NEOPHARM Group began as a small family business - with several pharmacy kiosks in the Krasnogorsk district of the Moscow region. Today NEOPHARM Group consists of almost 300 pharmacies under two brands - NEOPHARM and STOLICHI, more than 3,000 employees and over 25 million customers a year.
Legal address: 123423, Moscow, highway Otkrytoe, 2, bldg. 12
Top 7 federal pharmacy chains
Among the federal pharmacy chains, the first place is occupied by the Association of Independent Pharmacies (ASNA), which has 5,637 pharmaceutical outlets and occupies a 9.8% share of the regional markets where it is represented. Despite the name, the creators of the rating traditionally ranked it among the federal networks.
Second place, according to expert assessment, went to the Rigla chain with 1,846 pharmacies and a 1.7% market share. The third place is occupied by the Melodiya Zdorovya pharmacy chain (a subsidiary of Katren), which has 1,063 pharmacies and the same market share as Rigla (1.7%).
| Federal pharmacy chains | ||||
| Rating | Pharmacy chain | Aggregate network share in the regions of presence**, % | ||
| 1 | ASNA | 5 637 | 9,8 | 96,3 |
| 2 | Rigla* | 1 846 | 1,7 | 55,0 |
| 3 | Health Melody | 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 |
*RNC Pharma peer review
**The total share occupied by the network of pharmacies in the total volume of regional markets in which it is represented.
Top 7 multi-regional pharmacy chains
The first place among multi-regional networks is occupied by 36.6, which has 1,755 pharmacies and occupies 18.1% of the market in the regions of presence. Pharmacies under the Planet of Health brand are in second place with 1,246 pharmacies and a 3.8% market share. In third place is the Erkapharm company 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.
| Multiregional pharmacy chains | ||||
| Rating | Pharmacy chain | Number of outlets as of 07/01/2017 | Rating indicator (point) | |
| 1 | Pharmacy chain 36.6 | 1 755 | 18,1 | 70,3 |
| 2 | Pharmacies operating under Planet Health brand | 1 246 | 3,8 | 55,3 |
| 3 | 400 | 6,6 | 48,4 | |
| 4 | Maxavit (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 occupied by the network of pharmacies in 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 was given to the ProApteka association, which includes 2,340 pharmacies. The second place is occupied by the service of ordering goods of the pharmacy assortment “Pharmacy. ru”, which has 14,341 pharmacies across the country and is many times ahead of other representatives of the rating in this indicator. The third place is occupied by the Medico-Pharmaceutical Small Business Association (MFO), which has 1,608 pharmaceutical outlets.
| Pharmacy associations | ||||
| Rating | Pharmacy chain | Number of outlets as of 07/01/2017 | Aggregate network share in the regions of presence*, % | Rating indicator (point) |
| 1 | ProApteka | 2 340 | 3,3 | 68,2 |
| 2 | Apteka.ru | 14 341 | 0,6 | 54,6 |
| 3 | MFI | 1 608 | 4,3 | 51,6 |
| 4 | SPRING | 674 | 2,4 | 33,6 |
| 5 | FarmHub | 276 | 1,6 | 20,0 |
| 6 | Hope-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 occupied by the network of pharmacies in the total volume of regional markets in which it is represented.
TOP-15 pharmacy chains by the size of the average check according to the results of the I-II quarter. 2017
A rating was also presented by the size of the average check. 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 bill is 1,440 rubles.
Top 15 pharmacy chains in terms of average check in Q1–Q2 2017 |
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| Rating | Pharmacy chain | The size of the average check, rub. | Number of checks per 1 pharmacy, thousand units | Dynamics of the number of checks relative to the I-II 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 Erkapharm (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. Minicen) | 631 | 52,1 | 17,7 |
| 10 | Soviet pharmacy | 630 | 15,8 | 93,5 |
| 11 | O'Whit | 589 | 37,2 | -20,4 |
| 12 | On duty pharmacies | 580 | 42,6 | 3,5 |
| 13 | Evalar | 553 | 43,3 | -5,0 |
| 14 | Pharmeconom | 546 | 71,1 | 17,1 |
| 15 | Spring of Health (including LekOptTorg) | 542 | 66,8 | 52,7 |
10.10.2016
Top 50 pharmacy chains with the highest average bill Comparing the TOP-200 pharmacy chains for the first half of 2015 and 2016, we can state that 10% of companies from the pharmaceutical industry left the rating for various reasons. Among them were such as the Sochi pharmacy chain Farmada, the first pharmacy kiosk of the Gran chain, the Healthy People pharmacy chain, the Yekaterinburg company Stolet and others. During the preparation of each project, new companies are regularly opened. Of the 20 companies that have just appeared in the current rating, only half were in sight before. Another 10 networks were included in the database for the first time, two of them are Crimean: AViK by Alexander Lishchenko and Med-Service, which was previously part of the Ukrainian business group of Oleg Tokarev. Of those who were previously in the know and received admission to the TOP, it is worth mentioning the Mosapteka chain, launched by Ruslan Semenov, co-owner of the development Sezar Group. “We decided to diversify the business, and the pharmacy segment seemed very attractive,” explains Lev Nasimov, his junior partner. Businessmen have ambitious plans - by the end of the year to bring the number of Mosapteks to 70–75, and by the end of 2017 to 170 points. TOP-200 pharmacy chains in the first half of 2016: 1. A.v.e Group & Pharmacy chain "36.6" + A5 Group (Moscow); 2. Rigla (Moscow); 4. Health Planet (Perm); 5. Implosion (Samara); 6. First Aid & Rainbow (St. Petersburg) + Ladushka (Nizhny Novgorod); 7. Farmland (Ufa); 8. Neo-Pharm (Moscow); 9. Pharmacopoeia (Omsk) & Your Doctor (Tula); 10. Pharmaimpeks (Izhevsk); 11. Vita (Samara); 12. Samson-Pharma (Moscow); 13. Apteka-Timer (Perm); 14. Health Melody (Novosibirsk) & PharmSibCo (Krasnoyarsk) + Gemini (Samara); 15. 36.7C & Maksavit (Nizhny Novgorod); 16. Pharmacist + & Nectar (Rostov-on-Don); 18. Classics (Chelyabinsk); 19. New Pharmacy & Pharmacy Minitsen (Khabarovsk); 20. Spring of Health & LekOptTorg (St. Petersburg); 21. Nevis (St. Petersburg); 22. Provincial pharmacies (Krasnoyarsk); 23. Farmakor (St. Petersburg); 24. Aliya-Farm (Samara); 25. Zdorov.ru (Moscow); 26. Volgofarm (Volgograd); 27. Regional pharmacy warehouse (Chelyabinsk); 28. Farmeconomist (Irkutsk); 29. PharmImEx (Moscow); 30. Floria (Moscow); 31. Pharmacies of the Capital (Moscow); 32. Antey (Vologda); 33. Farmani & Pharmacy (Nizhny Novgorod); 34. Stavropol city pharmacies (Stavropol); 35. Health (Ust-Labinsk); 36. Family pharmacy (Blagoveshchensk); 37. Nizhny Novgorod Regional Pharmacy (Nizhny Novgorod); 38. Novosibirsk Pharmacy Chain (Novosibirsk); 39. Cheap pharmacy (Rostov-on-Don); 40. Edelweiss (Kemerovo); 41. Petersburg pharmacies (St. Petersburg); 42. Yug-Pharma (Rostov-on-Don); 43. Farmakon & Cranberry (Izhevsk); 44. Aloe (Edifarm) (St. Petersburg); 45. TriKa (Moscow); 46. O "Vita (Vladivostok); 47. Capital pharmacies (Moscow); 48. Tambovpharmacy (Tambov); 49. Kazan pharmacies (Kazan); 50. Lipetskpharmacy (Lipetsk); 51. Monastyrev.rf (Vladivostok); 52. Vitapharm (Moscow); 54. Republican network "36.6S" (Kazan); 55. Duty pharmacies (Moscow); 56. Orenlek (Orenburg); 57. Farm warehouse (Saratov); 58. First aid (Barnaul); 59. Biotek (Moscow); 60. Bashfarmatsiya (Ufa); 61. Vista (Simferopol); 62. - 63. Mater (Bryansk); 63. Economy (Moscow); 64. Helmi (Barnaul); 65. Farmasi (Moscow); 66. Dialogue (Moscow); 67. Kurganpharmacy (Kurgan); 68. FarmLiga (Kostroma); 69. Family pharmacy (Omsk); 70. Medicine for you (Moscow); 71. Kalina-Farm (Veliky Novgorod); 72. Medbioline (Moscow); 73. - 74. Bryanskpharmacy (Bryansk); 74. Tattekhmedfarm (Kazan); 75. Don Pharmacy + (Rostov-on-Don); 76. IFC pharmacies (Moscow); 77. Permpharmacy (Perm); 78. Pharmacies 36i6 & Zhiveya (Irkutsk); 79. Violet (St. Petersburg); 80. NIKA (Moscow); 81. Spray (Ryazan); 82. Evalar (Biysk); 83. AViK (Sevastopol); 84. Our Doctor (Nizhny Novgorod); 85. Omsk medicine (Omsk); 86. Vita-Nord (Arkhangelsk); 87. Voronezhpharmacy (Voronezh); 88. Med-Service (Simferopol); 89. State Apteka (Izhevsk); 90. Heart (Moscow); 91. World of Medicine (Kemerovo); 92. Formula of Health (Murmansk); 93. My pharmacy (Novosibirsk); 94. -95. Avicenna (Irkutsk); 95. Healthy city (Voronezh); 96. Pharmacy JSC (Arkhangelsk); 97. Rifarm (Chelyabinsk); 98. Harmony of health (Krasnoyarsk); 99. Pharmacy of Murmansk (Murmansk); 100. Health (Ivanovo); 101. Khanty-Mansiysk pharmacy (Khanty-Mansiysk); 102. Pharmacy of economical people (Vladivostok); 103. Pharmacy SO (Yekaterinburg); 104. -105. Nadezhda-Pharm (Tambov); 105. Mizar-N (Moscow); 106. Pharmacy of Chuvashia (Cheboksary); 107. Yeniseimed (Krasnoyarsk); 108. BioMed (Samara); 109. Formula of health (Kaliningrad); 110. Ulyanovskpharmacy (Ulyanovsk); 111. Medial (Zelenograd); 112. Pharmacies of Kuban (Krasnodar); 113. Pharmacies of Kuzbass (Kemerovo); 114. Pharmacy house (Kemerovo); 115. Pharmacy HK (Khabarovsk); 116. Pharmastar (Moscow); 117. Vita-Plus (Pyatigorsk); 118. Vitafarm (Tolyatti); 119. Your doctor (Biysk); 120. Pharmacy chain of the holding "North-West" (St. Petersburg); 121. Amurpharmacy (Blagoveshchensk); 122. Kalugapharmacy (Kaluga); 123. Pharmacy traditions (Kursk); 124. Pharmacy TO (Tyumen); 125. Pharmacy standard (Yekaterinburg); 126. Successful (St. Petersburg); 127. Be healthy! (Nizhny Novgorod); 128. Dynasty (Yakutsk); 129. Kit Pharma (Railway); 130. Novgorodpharmacy (Veliky Novgorod); 131. Bonum (Saratov); 132. Pharmacy Central (Ryazan); 133. Longevity (Moscow); 134. Shah (Astrakhan); 135. University Pharmacy (St. Petersburg); 136. Pharmacist (Yaroslavl); 137. VekFarm (Moscow); 138. Pharmaceuticals (Voronezh); 139. DOMfarma (Kolomna); 140.-141. Farmia (Voronezh); 141. Rainbow of health (Moscow); 142.-143. Pharmacy 313 (Nizhny Novgorod); 143. New hospital (Yekaterinburg); 144. New pharmacy (Kaliningrad); 145. Riviera (Kazan); 146. AZON (Bryansk); 147. Eco-Chem (Irkutsk); 148. OblPharm (Yaroslavl); 149. Cardio (Saratov); 150. Lekrus (St. Petersburg); 151. CRA 80 (Irkutsk); 152. Violet (Tomsk); 153. Zero Pain (Novosibirsk); 154. To health (Astrakhan); 155. Rainbow (Yekaterinburg); 156. Doctor (Yekaterinburg); 157. Soviet Pharmacy (St. Petersburg); 158. Secret of Longevity (Penza); 159. Jack (Yekaterinburg); 160. Lara (Ulan-Ude); 161. Dalfarma (Khabarovsk); 162. Farmikon (Chelyabinsk); 163. Karelfarm (Petrozavodsk); 164. Rostovoblpharmacy (Rostov-on-Don); 165. Living pharmacy (Tomsk); 166. Rilai (Tver); 167. State pharmacies of the Republic of Komi (Syktyvkar); 168. SIA (Krasnoyarsk); 169. Kubanpharmacy (Krasnodar); 170. Lungwort (Saratov); 171. Regional pharmacy warehouse (Orenburg); 172. Pharmacy VO (Vologda); 173.-174. Dimpharm (Moscow); 174. Vita (Tomsk); 175.-176. Medstroy (Stary Oskol); 176. Eskulap (Naberezhnye Chelny); 177. Mosapteka (Moscow); 178. Sakura (Kazan); 179. Fitofarm (Anapa); 180. Pharmacy on duty (Rostov-on-Don); 181. Formula of Health (Moscow); 182. Celeste (Irkutsk); 183. Pharmacy of the Republic of Moldova (Saransk); 184. Medicine man (Moscow); 185. Heart of Karelia (Petrozavodsk); 186. Artemis (Moscow) ; 187. Pharmacy No. 1 (Barnaul); 188. Lada Doctor (Moscow); 189. Agave (Mytishchi); 190. Pharmacy for the thrifty (Murmansk); 191.003 (Pskov); 192. Laura Plus (Krasnodar); 193. Diaspharm (Moscow); 194. Healer (Makhachkala); 195. Baikal pharmacies (Ulan-Ude); 196. Rosehip (St. Petersburg); 197. Tomskpharmacy (Tomsk); 198. Panacea (Novgorod); 199. - 200. Crimea-Pharmacy (Simferopol); 200. City pharmacies (Penza). You can learn about the development of the pharmaceutical market in 2016, financial innovations, problems and prospects for the development of new drugs and much more at the fifth forum of pharmaceutical business CFOs.
MarketMedia has studied which pharmacy chains in Russia are in the top ten largest in terms of the number of outlets.
The ten largest classic pharmacy chains by number outlets in Russia, according to the results of the first quarter of 2018, there were a total of more than 11 thousand pharmacies. In total, more than two thousand chains operate in the country, which account for 81.2% of the Russian retail drug market in 2017 in monetary terms, the RNC Pharma analytical company calculated.
In the coming years, the largest players will develop through the purchase of small regional chains, since the era of organic growth has long ended, 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 pharmacy retail trends is the process of market consolidation, which has not stopped for several years. Moreover, in the last two years it has become very active. Last year, about 50 transactions were made in Russia. “The interesting thing here is not even how many transactions take place, but the fact that quite large and quite successful companies were put up for sale, and this was amazing. For example, the Samson-Pharma or Kazan Apteki chains, - says Nikolay Bespalov, development director of the analytical company RNC Pharma, emphasizing that previously the largest transactions took place in relation to companies in a difficult financial situation. For example, "Rainbow" changed its owner due to the poor financial condition of the parent "Rosta".
At present, many assets are being sold rather because their owners do not see the prospects for market development: high competition, declining business profitability, and a drop in purchasing power. Now there is a low demand for medicines and related products.
Federal chains, which have bought 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, then there are four Moscow chains and one Perm one. The top 10 did not include regional pharmacy chains united in alliances and unions, as well as online pharmacies. But if we analyze alliances, then the largest is the Moscow Association of Independent Pharmacies (ASNA), which has united more than 8 thousand outlets in Russia up to Kamchatka. By the end of this year, the association intends to grow to 14,000 pharmacies.
In second place in terms of the number of united local players is the Samara chain Imploziya (more than 3.4 thousand points), in which more than 60% of pharmacies are either partner (connect to the Imploziya for Procurement software) or franchised.
The third place is occupied by the Novosibirsk network "Melody of Health" (1.8 thousand), which also has more than 50% of outlets are affiliated.
The peak of associations of local players in unions or alliances occurred in 2017. This allows chains to have lower purchase prices and consolidate manufacturers' orders for marketing services (manufacturers pay chains 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 is passed, they will 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 disadvantageous conditions, it will be difficult for local companies 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 in the M&A market. So now it is possible to exit the business on not bad terms yet,” Nikolai Bespalov believes.
1. Rigla
The first place in the Top 10 largest classical pharmaceutical chains is occupied by Rigla, which is part of the Protek Group. The network has more than 2.1 thousand pharmacies in 50 regions of Russia. In addition to the main Rigla brand, this company operates pharmacies under 12 other signs, including Zhivika, Apteki 03, Yugorsky Lekar, and others. 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's DOMpharma, Yekaterinburg's Apteka City, Pskov's Apteki 003, Kostroma's Panacea, has now announced a new business strategy aimed primarily at organic network growth and increase in revenue outpacing the growth rate of the pharmaceutical market, said CEO pharmacy chain "Rigla" Alexander Filippov.
2.
Erkapharm
As of April 1, 2018, she managed more than 1.2 thousand pharmacies in 8 federal districts of Russia under different brands, including Doctor Stoletov, Ozerki, Khoroshaya Apteka, Narodnaya Apteka, Apteka No. 1 , Raduga, 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
Pharmacy Chain 36.6 Group of Companies was founded in 1991. The company operates networks under the signs "36.6", "Gorzdrav" and A.v.e., the total number of which exceeded 1470 outlets. 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 in terms of the number of outlets is the Perm "Planet of Health", with more than 1.4 thousand pharmacies, including under the brand "Country of Childhood", in 50 cities of Russia. In the Perm region, the network is the leader and occupies more than 60% of the retail market, RNC Pharma calculated. The company's share in the retail drug market was 3.2%.
5. Neo-Pharm
The Moscow group of companies "Neo-Pharm" develops the networks "Neopharm" and "Stolichki", operating in different price segments. Against the background of the four previous pharmaceutical companies, it has much fewer pharmacy outlets - only 469. However, the company is developing larger formats, unlike competitors - hypermarkets and supermarkets. Her share of Russian market drugs is estimated at 3.1%.
6. Farmland
The sixth place in the ranking is occupied by the Bashkir Pharmland, which has been operating since 1997. It has more than a thousand pharmacies in Russia of various formats (pharmacy centers, social pharmacies, health and beauty centers), and also has optics salons, orthopedic salons and a hearing center. The company's share in the Russian drug market was 2.1%.
7. April
The Krasnodar network of pharmacies "April" had 891 pharmacies at the end of the first quarter of this year. Its share reached 1.9%. Just like the largest federal chains, the Krasnodar pharmacy retail is also developing through the purchase local networks. So, in the spring of this year, "April" announced the purchase of the largest Tatar network "Kazan Apteks" (112 points). In 2017, April was eyeing the Izhevsk network Farmakon & Klyukva (117 outlets), but in the middle of the year it was taken over by Pharmaimpeks, Vademecum magazine reported earlier.
8. Pharmacy-Timer
According to the results of the first quarter, the Perm network "Apteka-Timer" consisted of 673 points with a share of 1.8% in the drug market.
9. Pharmaimpex
The Izhevsk network "Pharmaimpeks" was established in 1994, initially the company was engaged in wholesale deliveries, cooperating 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
The Samara pharmaceutical company Vita manages almost a thousand pharmacies. The company develops two brands: Vita Express and My Pharmacy of Low Prices. Consolidated market share of medicines reached 1.4%.
The Russian retail pharmacy market is going through a phase of consolidation and tightening of state regulation. Leaders buy up local players, and those, 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 medicines in packages increased by 6% compared to 2017 to 5.6 billion. The volume of sales in money by 7% in the amount of more than 1.256 trillion rubles, calculated in the research company AlphaRM.
At RNC Pharma, the data 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 the 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 were operating in Russia. Despite the fact that compared to 2017, their number increased by 3%, in the fourth quarter of 2018, a decrease in the number of pharmacy outlets was recorded. The volume of revenue in December amounted to 111.2 billion rubles (+4%), and the average revenue per one was 1.7 million rubles (+1% compared to December 2017), according to the AlphaRM report.
At the end of 2018, over 4.7 billion packages of medicines worth 892 billion rubles were sold through pharmacies, which is 8% more in terms of money and 7% more in units.
If we compare the ratings of pharmacy chains in 2018 and 2017, then changes have occurred in the top three. "Group 36.6" went down two lines, losing second place to Erkapharm Group, and third place to Imploziya Samara chain. The leader in terms of total sales is still Rigla (part of PROTEK Group).
In terms of trends, 2018 saw continued market consolidation, which has been going on for several years, and the departure of small regional chains. Pharmacy chains continued to merge into various alliances, which peaked in 2017, to strengthen the purchasing power and consolidate manufacturers' orders for marketing services. Since manufacturers pay networks to promote their products.
By the way, recently the National Pharmaceutical Chamber (NFP) union has applied to the Ministry of Industry and Trade with a request to regulate the interaction between pharmacy chains and manufacturers, since in 60% of cases pharmacies impose on customers drugs with manufacturers of which they have signed marketing agreements, the Kommersant newspaper reported.
The NFP proposes to prohibit the priority recommendation of a particular drug to customers under marketing agreements between pharmacy chains and manufacturers. In case of violation of the ban, it is supposed to suspend the validity of the certificate of a specialist or certificate of accreditation of a pharmaceutical worker for up to 6 months. Relevant mandatory checks should be included in the Roszdravnadzor test purchase regulations, 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 at RNC Pharma
One of the main trends for the pharmaceutical retail in 2018 was the general stagnation of the segment. Against the backdrop of this decline, we have seen enough a large number of M&A transactions. Of course, local pharmacy chains became the main objects of transactions.
Among the market consolidators are Pharmland, Rigla and other players. But even among the major players, certain changes were noticed. For example, three players from the top 20 at once - Planet Health, Pharmacist + and Maksavit - united into a single organization under the auspices of the Planet Health network. The New Apteka chain has joined the IRIS partnership.
This process 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, more serious steps are required to unite the efforts of chains for equal competition.
In addition, it is obvious that the larger the network, the more favorable conditions it can receive for supplies from distributors and for marketing contracts from manufacturers.
The following trend is associated with the latter, which began to unwind at the end of 2018. A proposal was made to limit maximum size bonus for marketing in the pharmacy segment. By the way, proposals are already being made to completely ban this type of cooperation between manufacturers and pharmacy retail.
Potentially, this can seriously hit the retail business, especially those players who built their chains mainly due to the back margin (back margin 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 paying bonuses and tightened control over this type of activity. This is partly the “merit” of the pharmacy market participants themselves.
Some companies actively practiced merging goods back into the wholesale segment in order to fulfill the mandatory conditions of marketing contracts and receive bonuses.
But at the same time, there is a quite definite understanding that the state is strengthening control over the segment. In addition to tightening, the industry is also under pressure from the active development of distance selling of drugs, causing an outflow of parapharmaceutical (non-drug) assortment from pharmacies. Namely, this category is one of the most marginal. So far, drugs are officially prohibited from being sold in Russia via the Internet, but some market participants have found a way to circumvent the ban (the Ozon online store sells drugs through a pharmacy on the basis of a license for pharmaceutical activities, and the retailer's couriers deliver drugs on behalf of buyers. - Ed.).
Summarizing, we can conclude that in 2019 and beyond, it will be more and more difficult for single pharmacies and small chains to survive in the pharmacy market. Consolidation of the segment is already noticeable (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. In addition, so far (as of the end of Q1 2019) we do not see serious prerequisites for the recovery of market growth in monetary terms, not to mention in kind, which is also unlikely to 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: the production of medicines, the distribution of pharmaceuticals and health and beauty products, as well as retail sales. The audited consolidated revenue of the group in 2017 amounted to RUB 258.5 billion.
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 check is 489.93 rubles. The company's share in the retail pharmaceutical market in 2018 was 5.46%.
2. GC "Erkafarm" (Moscow). 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. Every month, the company's pharmacies serve more than 6 million customers. Since 2018, the company began to develop a new drogerie format for itself 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 in 2018 was 5.35%.
3. "Implosion" (Samara). The Implosion network unites more than 2.5 thousand points, of which more than 60% of pharmacies are either partner (connect to the Implosion software for the sake of purchases) or franchised. Total revenue at the end of 2018 - 46.5 billion rubles, market share - 3.83%.
4. "Group 36.6" (Moscow). Pharmacy Chain 36.6 Group of Companies was founded in 1991. The company operates networks under the signs "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 positions in the ranking of the largest networks, having shifted from the second position to the fourth. 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 the company does not disclose. Thus, the new top management is trying to bring the retail direction 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 network'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 included more than 1,696 pharmacies, including 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. Against the background of the top five players, it has much fewer pharmacy outlets - only 606. However, the company is developing larger, unlike competitors, formats - 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). Pharmaceutical company "Vita" manages almost a thousand pharmacies. The company develops two brands: Vita Express and My Pharmacy of Low Prices. During 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). As of January 1, 2019, the Aprel pharmacy network consisted of 1,335 pharmacies under the Aprel and Pharmacy Warehouse brands (economy segment). The total share of the company increased from 1.94% to 2.56%. During the year, the network opened just over 450 pharmacies, including through acquisitions. For example, in 2018, April absorbed the largest Tatar network Kazan Apteki (112 outlets).
9. Farmland (Ufa). The Bashkir company has been operating since 1997. In 2018, it increased its network from 954 to 1114 outlets in Russia. The company operates in different formats - pharmacy centers, social pharmacies, health and beauty centers, and also has optics 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. "Pharmaimpeks" (Izhevsk). The company was founded in 1994, initially it was engaged in the wholesale supply of medicines, cooperating mainly with hospitals. The first pharmacy opened in Udmurtia in 1998. At the beginning of 2019, the network consisted of 757 pharmacies (+28 outlets 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. Pharmacopoeia & Your Doctor (Tula). Pharmacopeyka chain of pharmacies is a franchise project of the pharmaceutical distributor LLC Medexport - Severnaya Zvezda. "Pharmakopeika", with more than 600 points, operates in the Altai, Krasnoyarsk Territories, Kemerovo, Novosibirsk, Tomsk and Tyumen Regions, as well as in the Khanty-Mansiysk 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 chains 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 check was 440 rubles, and the market share was 1.5%.
12. "Pharmacy from the warehouse" (Perm). Since the 1990s, its owners Andrey Godovalov and Nikolai Shavrin have been engaged in wholesale sales of medicines, and the Apteki ot sklada chain (discounter segment) has been developed 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 36.7 brand have been operating since 1998. In 2010, the company began to develop another brand - Maksavit discounter pharmacies. Currently, 489 pharmacies (+85 pharmacies) operate under the two brands in 36 Russian cities. The company's turnover at the end of 2018 amounted to 14.2 billion rubles, the average check was 496 rubles, the company's share was 1.17%.
14. "Melody of Health" (Novosibirsk). The network has been operating on the market since 2006 and today it is present in 53 regions of Russia and has 766 pharmacies (+43 outlets). Basically, these are pharmacy supermarkets with an open display. At the end of 2018, the turnover 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, Zdorov!, 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 Sergey Zakharov, later Andrey Tyasto joined them as a partner. At the end of 2018, Mega Pharm had 1,008 pharmacies (+138 outlets per year), the average check amounted to 303.51 rubles, and the market share increased from 0.39 to 0.95% over the year. The chain's turnover in 2018 exceeded RUB 1.5 billion. Mega Pharm is developing in partnership with X5, Azbuka Vkusa, Russian Railways, medical center Elena Malysheva. The pharmacy retailer plans to open more than 4,000 retail outlets by 2021.
16. "Pharmacist +" (Rostov-on-Don). The network of pharmacies is owned by the distributor of medicines CJSC Pharmacevt, 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 preparations, diagnostic tools and antiretroviral drugs of the Ministry of Health of the Rostov Region has been created and has been operating for 10 years. The pharmacy chain had 334 pharmacies at the beginning of 2019 (-13 pharmacies), the average bill was 460 rubles, the market share was 0.87%. At the end of 2018, the turnover exceeded 10.6 billion rubles.
17. "New Pharmacy" and "Apteka Minitsen" (Khabarovsk). Little is known about these pharmaceutical 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 operating legal entity of Apteki Minitsen is LLC Avers Apteka Minitsen, which has the same owners and shares. The total turnover of the two chains in 2018 exceeded 10 billion rubles (9 billion rubles in 2017), the total number of pharmacies reached 161 (remained unchanged), the average check decreased by 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 Northwest region for over 25 years and are part of the Nevis Trading Houses holding, established 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", cosmetic products with pheromones under the brand name "Doctor VILSH" (Dr.VILSH). 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 bill 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 is owned by Sergey Kagramanov (45%), Mikhail Akimov (33%), Artem Pyshnyak (12%), Yuri Tikhokhod (5%) and Olga Shcherbinkina (5%). The chain's turnover in 2018 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 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-West region, but later expanded the boundaries of its presence and today is present in the Urals and Central federal districts. Turnover at the end of 2018 reached 6.9 billion rubles, the average check - 490 rubles, and the share - 0.57%.
