Delta Medical

Valentines Day at Delta Medical. Always find something to celebrate!

The Ukrainian government is rushing through a number of laws that will significantly change the Ukraine pharma market. The changes are primarily populist driven and not rooted on market principles. The exact rules are not yet known, let alone how they will be interpreted. Below is a slightly edited and shortened excerpt of a press release issued today by the European Business Association in Ukraine: On February 12, 2025, the Verkhovna Rada (Parliament) of Ukraine passed draft Law No. 11493 in its second reading, introducing radical changes to pharmaceutical market regulation. Many manufacturers, importers, and distributors will be unable to meet the proposed requirements, leading to the gradual withdrawal of certain medications from the market. The draft law contains several underdeveloped provisions that experts unanimously agree will negatively impact drug supply and patient access. The EBA Health Care Committee (EBA Committee) finds it necessary to warn about market destabilization resulting from this draft Law's adoption. Drug affordability is a complex challenge that cannot be addressed through artificial supply restrictions. The changes proposed in Draft Law No. 11493 are likely to result in physical unavailability of medications rather than improved affordability. The EBA Committee experts highlight the following concerning provisions in Draft Law No. 11493: 1. Implementation of a mandatory national drug catalog. Medications whose manufacturers cannot meet certain price restrictions will be excluded from this catalog and banned from sale. Ukraine has not yet developed a pricing policy that would protect different drug categories under reference pricing. This creates significant risks of reducing access to many internationally produced medicines. Furthermore, the "national catalog" requirements apply even to medications not funded by the state, which diverges from European practices. 2. Introduction of distribution quotas. The EBA Committee identifies major risks in implementing restrictive distribution quotas. International manufacturers establish import and distribution agreements in Ukraine following strict internal requirements and Ukrainian legislation regarding drug import and quality. Consequently, manufacturers only partner with importers and distributors whose compliance with complex medicine quality and safety requirements has been verified and guaranteed. 3. Restrictions on maximum supply and sales markups. The draft law caps the maximum supply and sales markup at 8%. This approach fails to account for the diverse financial models of international manufacturing companies currently operating in Ukraine. EBA Committee experts emphasize that these restrictive conditions will create significant barriers for some companies and may force them to scale back operations.

In his famous quote about transforming a simple “yellow spot” into a radiant sun, Picasso captures a vital insight for organizations: great results aren’t just about resources, but about the mindset and initiative that bring those resources to life. Picture 100 painters with the same brushes and paint. While most produce a passable sun, a select few create something breathtaking. This gap isn’t merely a matter of skill; it’s the willingness to look beyond basic constraints and infuse work with curiosity, vision, and discipline. We all have many competent employees, but many of them just don't "shine." Even in tasks deemed mundane—like coding or drafting emails—these star performers consistently exceed expectations by transforming routine steps into opportunities for elegance and efficiency. Such individuals have two core traits. First, they exhibit initiative: they don’t wait for permission to elevate a project, craft something new, or fix an overlooked annoyance. Second, they apply rigorous judgment: faced with limited direction, they fill gaps with thorough research, thoughtful reasoning, or creative ideas. Identifying these employees is crucial because they raise the bar for everyone else. When colleagues see an insightful memo or a masterful presentation, it sparks a new standard. Over time, small demonstrations of excellence—like reorganizing a neglected file cabinet storage area or writing surprisingly concise code—accumulate, fostering an environment where details matter. Leaders can reinforce this behavior by recognizing it and setting expectations that go beyond the bare minimum. Praising strong thinking, resourcefulness, and an eye for detail sends a message that “just enough” isn’t enough. Ultimately, the effect compounds, as each individual learns to dig deeper, searching for ways to improve processes and outputs that appear ordinary on the surface. Whether it’s an Olympic ice dancing routine that electrifies a once-overlooked sport, or a basic business task elevated by thoughtful execution, turning a “yellow spot” into the sun reflects a habit of seeing more potential than most realize is there. In the end, that extra push toward excellence sets apart the truly stellar contributors who help a team reach new heights.

Delta Medical remains a leader in Ukraine’s pharmaceutical advertising market. Over the first nine months of 2024, Delta Medical earned 29,691 EqGRP on television—placing it second among all marketing organizations in the pharma sector. At the same time, Delta Medical captured 30.6 million ad impressions online, ranking fourth in digital advertising. Even though overall TV share for pharmaceutical brands dipped—mainly because more advertisers returned to the market—Delta Medical’s 13 brands still managed to approach pre-invasion spending levels in national currency. Meanwhile, online ad impressions in the pharma category saw a general decline, but Delta Medical held firm by blending TV and online strategies. All of this lines up with the All-Ukrainian Advertising Coalition’s updated forecast, predicting a 33% climb in total advertising investments by the end of 2024. While power outages remain a concern during the winter season, Delta Medical plans continued strong support for our brands.

Interesting data on pharma OTC sales in Russia: Online vs. Offline This table provides a detailed look at the ratings of OTC pharma companies in both online and offline channels. The left hand column shows ranking by online sales. The right hand column is by off line / pharmacy sales. Ranking is based on 12 month MAT from Oct 2024. While most leading companies perform well in both segments, their exact positions often shift. Sanofi stands out, ranking #3 online and #4 offline. Haleon secures #5 online and moves up to #3 offline, maintaining strong market presence. Bayer makes an impressive climb online to #4, though it remains further down at #8 offline. Never really think of Servier as leading OTC company but ranking in internet sales. Must be Dextralex? The data highlights the growing importance of digital channels for OTC sales. We see that most of the leaders grew on line sales by over 50% compared to the previous year. So presumably something dramatically changed, or the measurement algorithm was modified. Nonetheless, is clear that the online channel is gaining significance. I don't have absolute sales numbers, so can't do a comparison between the two channels. Anyone else with insider knowledge, chime in!

We're #hiring a new OTC Business Unit Manager in Kyiv, Kyiv City. Apply today or share this post with your network.

We're #hiring a new OTC Business Unit Manager in Kyiv, Kyiv City. Apply today or share this post with your network.