Ukrainian pharmacies are seeing a significant reduction in the availability of low-cost drugs, effectively forcing consumers to opt for more expensive alternatives. this trend is largely driven by shifts in how the pharmacy business generates income. This development was reported by Novini.LIVE and highlighted by Dengi.ua.
Industry experts explain that while pharmacies can earn a markup of up to 35% on a medicine's cost, a recent ban on marketing payments deprived them of a critical secondary revenue stream. Consequently, pharmacies have prioritized stocking more expensive medications to maximize their remaining profit margins.
"If a pharmacy earns a maximum of 35% on the price of a drug, and marketing payments are banned, it cannot generate additional revenue from that sale. Naturally, the pharmacy becomes interested in selling more expensive products. If a drug costs 100 hryvnias, the pharmacy earns 35 hryvnias; on a more expensive item, the absolute profit is higher," explained Agiya Zagrebelska, Director of Partnership Development at the Economic Security Council of Ukraine.
Market participants also argue that state regulations have created a divide between key players - manufacturers, distributors, and pharmacies - exacerbating industry contradictions.
"Any regulatory power, as we understand it, divides the market. It has split the interests of pharmacies, distributors, and manufacturers. I believe this was essentially a calculated move by certain players to undermine the pharmacy business by making it unprofitable," stated Olena Prudnikova, Head of Pharmrada.
In response to the deteriorating situation, the government revised its stance at the end of 2025. The Cabinet of Ministers reinstated the legality of marketing services but introduced a cap: promotion costs are now restricted to 18% per quarter. Despite this adjustment, the impact of previous changes lingers, with Ukrainians still facing rising costs and a shrinking selection of affordable medicines.
