Rating of pharmacy chains. MarketMedia studied which Russian pharmacy chains were among the top ten largest by number of outlets

MarketMedia studied which Russian pharmacy chains were included in the top ten largest by number of outlets.

The ten largest classical pharmacy chains by number of outlets in Russia at the end of the first quarter of 2018 totaled more than 11 thousand pharmacies. In total, there are more than two thousand chains operating in the country, which accounted for 81.2% of the Russian retail drug market in 2017 in monetary terms, according to the analytical company RNC Pharma.

In the coming years, the largest players will develop through the purchase of small regional chains, since the era of organic growth is long over, 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 trends in pharmacy retail is the process of market consolidation, which has not stopped for several years. Moreover, over the past two years he has become very active. Last year, about 50 transactions were completed in Russia. “The interesting thing here is not even how many transactions are taking place, but the fact that quite large and quite successful companies were put up for sale, and this was surprising. For example, the Samson-Pharma or Kazan Pharmacies chains,” says Nikolai Bespalov, development director of the analytical company RNC Pharma, emphasizing that previously the largest transactions took place in relation to companies in difficult financial situations. For example, Raduga changed ownership due to the poor financial condition of its parent Rosta.

Currently, many assets are being sold rather because their owners do not see prospects for market development: high competition, declining business profitability, falling purchasing power. Currently, there is low demand for medicines and related products.

Federal chains, which have bought up 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, there are four Moscow networks and one Perm network. The top 10 did not take into account regional pharmacy chains united in alliances and unions, as well as online pharmacies. But if we analyze alliances, the largest is the Moscow Association of Independent Pharmacies (ASNA), which unites more than 8 thousand retail outlets in Russia right up to Kamchatka. By the end of this year, the association intends to grow to 14 thousand pharmacies.

In second place in terms of the number of united local players is the Samara chain Implozia (more than 3.4 thousand points), in which more than 60% of pharmacies are either partner (connected to the Implosion software for procurement) or franchised.

The third place is occupied by the Novosibirsk chain Melodiya Zdorovya (1.8 thousand), which also has more than 50% of its outlets as partners.

The peak of associations of local players into unions or alliances occurred in 2017. This allows networks to have lower purchasing prices and consolidate orders from manufacturers for marketing services (manufacturers pay networks 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 was adopted, they would 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 unfavorable conditions; local companies will find it difficult 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 on the M&A market. So now you can get out of business on not bad terms,” says Nikolai Bespalov.

1. Rigla
The first place in the Top 10 of the largest classical pharmaceutical chains is occupied by Rigla, part of the Protek Group of Companies. The network includes more than 2.1 thousand pharmacies in 50 regions of Russia. This company, in addition to the main brand “Rigla”, operates pharmacies under 12 more signs, including “Zhivika”, “Pharmacies 03”, “Yugorsky Lekar”, etc. 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 DOMpharma, Yekaterinburg Pharmacy City, Pskov Pharmacies 003, Kostroma Panacea, has now announced a new business strategy aimed primarily at organic network growth and revenue growth outstripping the growth rate of the pharmaceutical market, said Alexander Filippov, CEO of the Rigla pharmacy chain.

2. Erkafarm
As of April 1, 2018, it managed more than 1.2 thousand pharmacies in 8 federal districts of Russia under different brands, including Doctor Stoletov, Ozerki, Good Pharmacy, People's Pharmacy, and Pharmacy No. 1. , “Rainbow”, “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
The Pharmacy Chain 36.6 group of companies was founded in 1991. The company operates networks under the names “36.6”, “Gorzdrav” and A.v.e., the total number of which exceeded 1,470 points. 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 by number of outlets is the Perm-based “Planet of Health”, which has more than 1.4 thousand pharmacies, including those under the “Country of Childhood” brand, in 50 cities of Russia. In the Perm region, the chain is a leader and occupies more than 60% of the retail market, according to estimates from RNC Pharma. The company's share in the retail drug market was 3.2%.

5. Neo-Farm
The Moscow group of companies Neo-Pharm is developing the Neopharm and Stolichki networks, operating in different price segments. Compared to the four previous pharmaceutical companies, it has much fewer pharmacy outlets - only 469. However, the company is developing larger formats, unlike its competitors - hypermarkets and supermarkets. Her share is Russian market drugs is estimated at 3.1%.

6. Farmland
Sixth place in the ranking is occupied by the Bashkir Farmland, which has been operating since 1997. It has more than a thousand pharmacies in Russia of different formats (pharmacy centers, social pharmacies, health and beauty centers), and also has optical salons, orthopedic salons and a hearing center. The company's share in the Russian drug market was 2.1%.

7. April
The Krasnodar pharmacy chain "April" numbered 891 pharmacies at the end of the first quarter of this year. Its share reached 1.9%. Just like the largest federal chains, Krasnodar pharmacy retail is also developing through the purchase local networks. Thus, in the spring of this year, April announced the purchase of the largest Tatar chain of Kazan pharmacies (112 points). In 2017, April was eyeing the Izhevsk chain Pharmakon & Klyukva (117 points), but in the middle of the year it was taken over by Pharmaimpex, Vademecum magazine previously reported.

8. Pharmacy Timer
At the end of the first quarter, the Perm chain “Apteka-Timer” consisted of 673 points with a 1.8% share of the drug market.

9. Pharmaimpex
The Izhevsk Pharmaimpex chain was created in 1994. Initially, the company was engaged in wholesale supplies, collaborating 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
Samara pharmaceutical company Vita manages almost a thousand pharmacies. The company is developing two brands: Vita Express and My Pharmacy low prices" The consolidated share in the drug market reached 1.4%.

The analytical company RNC Pharma ® presents a rating of Russian pharmacy chains based on the results of 1-3 quarters. 2017

The third quarter in relation to Russian pharmaceutical retail was replete with a wide variety of events. We had to witness both all kinds of transactions, often quite large, and the renewal of rhetoric on certain regulatory issues, in particular the possibility of selling drugs in supermarkets.

The issue of expanding drug sales points, which has been going on intermittently since 2014, has become quite boring. Neither representatives of the professional pharmaceutical community, nor, we dare say, representatives of “big retail”, who are slowly but surely developing their own projects in pharmaceutical retail, can find any obvious expediency in this innovation. Nevertheless, this issue arises from the depths of the Government with enviable consistency.

Transactions, the number of which seems to be growing every day, have also become almost commonplace. The change of owners of “Classics” and “Pharmakor”, even adjusted for the decent size of the companies, is also difficult to suspect of originality, if only due to the striking similarity of the fate of these companies before the sale and the organizational format in which the transactions were carried out.

So, upon closer examination, the apparent diversity information flow leaves a feeling of some déjà vu, which, against the backdrop of quite obvious signs of stagnation in the Russian pharmaceutical market, looks very symptomatic.

Tab. TOP pharmacy chains by share in the retail and commercial drug market in Russia based on the results of 1-3 quarters. 2017

The list of 100 largest enterprises in Russia includes several pharmacy chains. The largest companies in terms of profit, included in the Top 7, are the companies ASNA, Rigla, Pharmacy Chain 36.6, Implozia, Planet Zdorovya, Erkofarm Group of Companies, Neo-Pharm.

The last few years, amid the 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.

Analysis of the table shows that Russian pharmacy chains in the TOP 10 have strengthened their positions in the market. Their total share increased to 45%. The revenue ratio of 2016 to 2015 increased by 26.6%. These figures indicate ongoing market consolidation.

RNC Pharma, a well-known analytical observer, presented a rating of Russian pharmacy chains based on the results of the 1st quarter of 2017.

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 Pharmacy Chain 36.6, Raduga flew out of the coveted seven - its place was taken by Neo-Pharm.

According to researchers, the pharmacy market is close to saturation - today it is increasingly difficult to find suitable space in places with a sufficient amount of traffic. Global investment programs promise certain opportunities, such as the renovation project in Moscow. However, it is local in nature. Increased interest in the pharmaceutical market from non-pharmaceutical retail promises a serious increase in competition in the foreseeable future.

That is why leading players are rushing to capture the remaining space in the market - in 2017, according to a KMPG survey, 90% of large retail chains plan to expand their presence by opening new sales points. Geographical placement of pharmacy points is carried out on the basis of preliminary marketing research.

Some players speak out about the need to limit the market. More than 58% of pharmacy chain managers are in favor of legislatively limiting the number of pharmacies in the country, following the example of Western European countries: France, Spain and Germany.

There cannot be an oversupply of pharmacies in Russia - Nadezhda Sharavskaya, deputy head of the department for control of the social sphere and trade 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 there is demand, she argues. Many pharmacies operate in the capitals of the constituent entities; the restriction will lead to higher prices and interfere with competition, from her point of view.

Let's look at large Russian pharmacy chains that are considered 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. The ASNA company is a 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. Today, the territory of the Association extends far beyond the capital, occupying the territory from the south to Kamchatka. ASNA is present in more than 100 cities and more than 60 constituent entities of the Federation. Regional representative offices have been opened in Nizhny Novgorod, Izhevsk, and 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 by sales volume. As of December 2016, the network has 1,769 retail outlets in 47 regions of Russia. Rigla represents the retail segment of the business of the Protek Group of Companies, the largest pharmaceutical holding in Russia. The pharmacy chain's assortment includes 18 thousand assortment items, of which about 60% are parapharmaceutical products. The Rigla pharmacy chain includes 1,768 pharmacies at the end of 12 months of 2016. Pharmacies under the Be Healthy! brand. and Zhivika operate as discounters. At the end of 2016, there were 1,214 discount 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 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 pharmacy chains. The merger was completed in December 2016 as part of an additional issue of shares of PJSC Pharmacy Chain 36.6, which remained the parent company of the merged 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 manager− Vladimir Kintsurashvili

Capitalization- 16.6 billion rubles.

Gross profit in 2016 was 10,766 million rubles.

Promotion rate - 6.99 rubles.

4. Implosion

Implosia LLC was registered in 1991. Since 1993, the main activity has been trade in medicines. In addition to our own pharmacies, goods are sold through pharmacies of other legal entities working under a partnership agreement. Sales of products through the pharmacy chain are carried out in the following regions of Russia: Samara, Saratov, Penza, Orenburg, Ulyanovsk regions, Moscow, Bashkiria, Tatarstan. On at the moment in Tatarstan and Bashkiria Implosia 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 in order to minimize economic and legal risks into several companies: Farmerspektivu LLC, I-Trans LLC, I-Cube, Implosia-Finance LLC and others.

Legal address: 432072, ULYANOVSK, PR. GENERAL TYULENEV, 7

Information about the owners: Implosion has an opaque ownership structure. In the largest operator of the holding - LLC "Pharmperspektiva" ("FP") - Grant Bezruchenko controlled 27.19%. 24% of the company belonged to his brother Valery Bezruchenko. The brothers' partners in "FP" were Dmitry Podgornov (27.19%) and Oleg Teplyakov (21.6%). After the death of the company’s founder, Grant Bezruchenko, in 2015, his share was purchased by the beneficiaries.

Capitalization: 15 billion rubles.

5. Planet Health

LLC "Planet Health" is one of the most actively growing players in the Russian pharmaceutical retail industry. Among the regions that the network is developing, the key ones remain the Perm Territory, the Kirov Region and Udmurt Republic. Moreover, in Perm, “Planet 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, LENIN STREET, 83/34

Information about the owners: Founder - individual Alexey Evgenievich Kislov

6. Erkafarm Group of Companies (Doctor Stoletov & Ozerki)

The 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 3,500 people.

Legal address: 107005, Moscow, Bakuninskaya Street, 14

Information about the owners: Individual, Ivan Givievich Saganelidze, Prestige Market LLC, Proftekhgroup LLC, Russian Trust Alliance “Your Savings” LLC, Sana-MT LLC, Enterprise Service LLC

7. Neo-farm

The history of NEOPHARM Group of Companies began as a small family business - with several pharmacy kiosks in the Krasnogorsk district of the Moscow region. Today, NEOPHARM Group of Companies includes almost 300 pharmacies under two brands - NEOPHARM and STOLICHKI, with more than 3,000 employees and over 25 million customers a year.

Legal address: 123423, Moscow, Otkrytoe highway, 2, bldg. 12