Balancing market share of national and foreign pharmaceutical companies in developing countries on example of Ukraine

Abstract

The article describes a common problem of developing countries which is a negative impact of multinational corporations on the domestic pharmaceutical market and describes specific actions that can be undertaken to protect the interests of national pharmaceutical manufacturers. The problem is shown on the example of Ukraine and the paper discusses solutions presented by the Ukrainian Ministry of Health project which assumes that by the year 2021 production (and consequently, sales) of multinationals should be down-sized to 50% of the total market turnover. Since the Ukrainian Ministry of Health project only says that by 2021 the parity between national and foreign production (and consequently sales) should be 50 % : 50 %, the main purpose of the paper was to explain what factors determine the level of national production of pharmaceuticals and how to change them to enable national sales to grow to 50 % of the total market turnover.