Research of the dynamics of wholesale segment concentration level in the regional pharmaceutical market

Abstract

Introduction: The study of the competitive environment in the pharmaceutical market is an element of the analysis of the drug supply system. The purpose of the study is to analyze the dynamics of concentration levels in the wholesale segment of the regional pharmaceutical market. Materials and methods: Data on market shares of key players were collected and summarized based on the executed contracts (461 contracts in total) for the supply of pharmaceutical products in the model region. For the competitive analysis of pharmaceutical distributors, the Herfindahl-Hirschman Index (HHIn) calculation method was used. We also used the method of constructing the SV matrix, which has the form of a graph consisting of four quadrants divided on the abscissa scale by the obtained values of market concentration ratios (CRSV) and on the ordinate scale by the values of Hall-Teidman indices (HTSV). Results: Market concentration indicators in the wholesale segment of the regional pharmaceutical market indicate the formation of oligopoly. The constructed SV matrix demonstrated the dynamics of market concentration levels corresponding to the changing economic situation. Based on the results of the analysis, proposals to improve the competitiveness of regional pharmaceutical distributors were formed. Conclusion: The study of the dynamics of market concentration indicators allowed to analyze their state, establish the vectors of their drift, and propose measures to optimize the wholesale supply of pharmaceutical goods.