Ratings of pharmaceutical companies and pharmacies in Russia

Fig.1. Ratings of the top-25 pharmaceutical companies registered in the Russian Federation by net profit, 2019–2020

Here I want to share some results of the top-25 pharmaceutical companies registered in the Russian Federation with net profit more than 0 (2019–2020, fig.1). The data were taken from the databases of the Federal Tax Service and Rosstat in thousand rubles. Due to the rating of manufacturers not all are engaged in the production of medicines and being Russian companies. The total Russian production in descending order of the value of net assets and places in the rating includes R-Pharm (2), Pharmstandard (4) and Alium (5). AFK Sistema (1) participates as a shareholder in Binnopharm Group (since 2018, the company, together with VTB, owns 64 % of the Alium holding), takes 1st place. In 2019, AFK for almost 12 billion RUB purchased the pharmaceutical assets of the Marathon Group — Kurgan Society of Medicines and Products Sintez and Biocom. Strong foreign manufacturers are Servier (6), Merck (7) and OTCPharm (9). Such companies as Evalar (3) and Solgar (21) are mainly manufacturers of dietary supplements and homeopathy.

Fig.2. Ratings of the top-7 pharmacies registered in the Russian Federation by net profit, 2019–2020

Going further, I want to share some results of the top-7 pharmacies in terms of net profit more than 0 including online platforms (2019–2020, fig.2). Specific leaders are Rigla LLC, Neo-Pharm and Erkapharm. It is important that such networks as Apteka.ru, Iris, Alpharm, Pharmacy 36.6 and Eapteka — their net profits were negative.
To sum up, we see the growing competition among pharmacies. Online sales are not so popular despite of convenience. For Russian pharmaceutical companies witch have not so strong advantages such as Vertex, Ozon pharm, Nizhpharm and Lekko it is also important to focus on sales management. For example, Ozon pharm has an negative increase in production, operating and financial cycles in the period 2017–2019. Reducing the return on assets of fixed assets is also a negative fact. The negative is the reduction in a number of profitability ratios — sales, equity and assets. The financial stability of Ozon pharm ratio for the period increased, as did the leverage ratio and borrowed funds, the provision of current assets with own funds and the maneuverability of equity capital.