Pharmaceutical Trade Russia
Oriola-KD launched its pharmaceutical wholesale and retail business in Russia in 2008 by acquiring a nationwide wholesale company and a Moscow-based pharmacy chain. It now has a total of about 230 pharmacies in the Moscow region, main logistic center in Moscow and 12 regional distribution centres.
Oriola-KD owns two pharmacy chains in Russia: Stary Lekar and 03 Apteka. Many of the pharmacies in the Stary Lekar chain are open-concept pharmacies and have a wider product assortment than the closed-concept 03 pharmacies. The Stary Lekar pharmacies are located near underground stations and in shopping centres, whereas the majority of 03 pharmacies are located in suburbs.
Oriola’s main logistics centre is located in Moscow in addition to which there are also 12 regional distribution centres, from St Petersburg to Irkutsk. Oriola supplies its customers with pharmaceuticals and health and wellbeing products. Its customers are pharmacies, hospitals and wholesalers. Roughly 80 per cent of the Russian population lives in the area in which Oriola-KD operates.
On the Russian pharmaceutical market, where there are many different operators, Oriola-KD is the 6th biggest pharmaceutical wholesaler, while in the retail business it operates the 7th biggest pharmacy chain in the Moscow region.
Russian pharmaceutical distribution market
The Russian pharmaceutical distribution market is based on a multi-channel model, in which pharmaceutical companies sell products to various wholesalers. The Russian pharmaceutical wholesale market is much more concentrated that the retail market. The ten largest pharmaceutical wholesalers make most of their direct medicine purchases from pharmaceutical companies, and in pharmaceuticals sold to pharmacies they have a market share of about 85 per cent. There are, however, hundreds of smaller local and regional pharmaceutical wholesalers, which purchase their products from many different sources.
In Russia, pharmacies can be owned by private individuals and companies, and there are both private and chain-operated pharmacies on the market. The Russian pharmacy market remains highly fragmented and the ten largest operators control about 16 per cent of the market. During the year under review, a growing number of larger chains started to diversify their operations by increasing the number of low-price pharmacies and by establishing new concepts in such areas as cosmetics. Larger chains have also continued to acquire smaller chains and individual pharmacies so that they can operate over wider areas and increase their purchasing volumes through efficiency improvements.