Ukrainians choose cheaper alternatives: how Darnitsa's high-price policy weakens its position in the pharmaceutical market

The Ukrainian pharmaceutical market is undergoing a fundamental transformation, and the recent decline in sales of one of its flagships – the Darnitsa company – has become a vivid example of how a business model based on high prices and focused on continuous profit growth cannot withstand competition and new market dynamics. If previously leadership was determined by brand strength and marketing, today the key factor is price. Instead of adapting, the company, apparently, is trying to put pressure on the market and portrays itself as a victim. UNN investigated the real situation in the pharmaceutical market now.

UNN analyzed the cost of popular medicines in Kyiv, using data from the online aggregator for searching medicines Tabletki.ua. The analysis showed that prices for a number of popular Darnitsa-produced drugs are significantly higher than analogues manufactured by other Ukrainian pharmaceutical factories.

For example, the popular “Paracetamol” from Darnitsa costs 30.60 UAH, while its analogue from Arterium can be purchased for 19.05 UAH. A similar situation applies to other antipyretics: “Ibuprofen” from Darnitsa costs 70.30 UAH, while Lekhim offers its drug for 61.17 UAH. In the segment of sedatives, “Validol” from Farmak is 12.50 UAH, and the drug from Darnitsa is 14.80 UAH.

The difference becomes even more noticeable with the example of the drug “Citramon”: once the most recognizable “Citramon-Darnitsa” on the market is sold for 27 UAH, while its cheapest analogue is available for 11.30 UAH, saving Ukrainians more than 15 hryvnias. “Septefril” from Borschagivsky Plant is sold twice cheaper than “Darnitsa” – it costs 44.48 UAH. A logical question arises – why buy the same drug, only with a green brand inscription on the package, and twice as expensive – for 87.41 UAH? A similar situation applies to “Ambroxol” – the drug from Darnitsa costs 24.82 UAH, and the analogue from Borschagivsky Plant – 18.95 UAH. Even ordinary “saline solution” from Darnitsa costs 48.05 UAH, and from Yuria-Pharm – 39 UAH.

And if some Darnitsa drugs are twice as expensive as their analogues, there are also those that differ in price by a few hryvnias. But for Ukrainians, these “few hryvnias” saved on each drug play a significant role in the final check amount. After all, the constant rise in prices in Ukraine forces citizens to count every penny.

In addition, the state has obliged pharmacies to have the cheapest analogues of drugs available. Thus, Darnitsa, keeping the cost of its own drugs at a high level, finds itself in unfavorable conditions, unable to compete with those who offer the same, but cheaper. Moreover, access to Darnitsa-produced drugs has not worsened; they can still be purchased at any pharmacy. However, availability does not mean desire. After all, Ukrainians choose what is cheaper.

It is also important to understand that the manufacturer forms most of the final cost of medicines, which is about 72-74%. This means that Darnitsa itself decides at what price its medicines will be sold.

Moreover, the real competitive struggle is not between Darnitsa and pharmacies. The company’s behavior in the market indicates that it is primarily fighting with other manufacturers, trying to displace their cheaper medicines, instead of fighting for the consumer with effective methods of reducing the cost of its own medicines.

It seems that Darnitsa is a vivid example of a company that refused to adapt to the new market realities and is now trying to regain its lost leadership positions without reviewing its own pricing policy. And the company’s attempts to blame pharmacies and distributors for falling sales look like an attempt to shift responsibility for its own unsuccessful decisions to someone else. After all, in conditions where the market is changing and the buyer wants more affordable analogues, Darnitsa’s high prices put it in the position of an outsider.