Pharmaceuticals

The transformation of the healthcare system began with the adoption of the Law of Ukraine “On State Financial Guarantees of Medical Services to the Population” in 2017. The National Health Service of Ukraine (NHSU) was established in April 2018 as a single national customer of medical services. Since April 1, 2020, the majority of public healthcare expenditures have been centralized and consolidated into the Medical Guarantees Program — a set of service packages that define the medical services and medications covered by NHSU payments. The digitalization of healthcare also became a crucial stage of the reform, with the introduction of the eHealth (Electronic Healthcare System) and other digital tools for medical institutions and patients.

In 2024, healthcare expenditures amounted to 238.7 billion UAH, of which state budget expenditures, including transfers, totalled 204.2 billion UAH, accounting for 4.5% of all categories of state budget expenditures.

The sector accounts for 3.1% of gross value added (GVA) and 1.2% of tax revenues. As of September 2024, more than 15,000 medical interns are studying in Ukraine at higher education institutions of various affiliations and forms of ownership. In 2023, the number of employed workers in the healthcare sector was approximately 655,000, representing 7.23% of the total workforce across all industries.

The healthcare sector has suffered significant damage due to the war. As of early 2024, 1,284 medical facilities were damaged during the full-scale invasion, with estimated damages totalling 3.1 billion USD. The amount needed for recovery and development of the sector is estimated at 19.4 billion USD, representing 3.7% of all categories as of winter 2024.

Rehabilitation and prosthetics are essential components of the modern healthcare system. More than 200,000 people each year require rehabilitation services, and unfortunately, the demand for these services continues to grow. Prosthetics and the production of medical equipment in Ukraine still require significant investment and modernization, with a clear need to increase production and reconstruction.

According to Ukraine’s Digital Development and Innovation Strategy through 2030, one of the priority areas includes Biotech (biotechnological research and development) and MedTech (innovations in medical technologies).

Despite the gradual decline in the share of imports in recent years, Ukraine’s pharmaceutical sector continues to show a high level of import dependence: the volume of imports is nearly eight times greater than exports. At the same time, the share of exports to European Union countries has increased to 20.9%, indicating the steady integration of the domestic pharmaceutical industry into the European market.

The volume of foreign direct investment in the pharmaceutical industry amounts to USD 151.6 million, representing about 0.4% of the total investment in all sectors of the economy. Although the pharmaceutical sector is not the largest industrial segment in Ukraine, it plays a key role among critically important industries. As of 2023, its share in the structure of industrial production sold amounted to 1.6%.

As of early 2024, approximately 18,000 pharmacies were operating in Ukraine. The total volume of pharmacy sales in Ukraine in 2024 amounted to 1.3 billion packages and 4.8 billion USD, with 78.6% representing pharmaceuticals in monetary terms.