TOP-10 Russian manufacturers of pharmaceuticals and medical products in terms of product profitability

ranking 05/09/2019

Information agency Credinform presents ranking of the largest Russian pharma companies. Enterprises with the largest volume of annual revenue (TOP-10), engaged in manufacture of pharmaceuticals and medical products, were selected for the analysis, according to the data from the Statistical Register for the latest available periods (for 2016-2018). Then they were ranked by decrease in product profitability ratio (Table 1). The analysis was made on the basis of the data of the Information and Analytical system Globas.

Product profitability (%) is calculated as the ratio of sales profit to expenses from ordinary activities.

In general, profitability reflects the economic efficiency of production. Product profitability analysis allows us to make a conclusion whether output of one or another product is reasonable. There are no prescribed values for indicators of this group, because they vary strongly depending on the industry.

The experts of the Information agency Credinform, taking into account the actual situation both in the economy as a whole and in sectors, has developed and implemented in the Information and Analytical system Globas the calculation of practical values of financial ratios that can be recognized as normal for a particular industry. For manufacturers of pharmaceuticals and medical products practical value of the product profitability ratio amounted from 25,32% in 2017.

For getting of the most comprehensive and fair picture of the financial standing of an enterprise it is necessary to pay attention to all combination of indicators and financial ratios.

Table 1. Net profit, revenue, product profitability ratio, solvency index Globas of the largest Russian pharma companies (TOP-10)
Name, INN, region Revenue, billion RUB Net profit (loss), billion RUB Product profitability ratio, % Solvency index Globas
2017 2018 2017 2018 2017 2018
1 2 3 4 5 6 7 8
JSC BIOCAD
INN 5024048000 Saint Petersburg
up12,50 up17,81 down3,82 up7,46 down88,08 up95,43 145 Superior
JSC VALENTA FARM
INN 5050008117 Moscow region
up13,64 up14,37 up5,26 down4,77 down95,54 down67,12 163 Superior
JSC Nizhpharm
INN 5260900010 Novgorod region
up25,62 up25,73 up2,82 up3,03 up27,05 down26,75 173 Superior
JSC PHARMSTANDART-LEKSREDSTVA
INN 4631002737 Kursk region
down17,06 up19,64 down1,54 up3,58 up14,33 up24,03 203 Strong
LLC OZON
INN 6345002063 Samara region
up10,76 up10,88 up2,10 down1,29 up70,49 down21,89 189 High
JSC CHEMICO-PHARMACEUTICAL WORKS AKRIKHIN
INN 5031013320 Moscow region
down13,19 up14,30 up1,42 down1,19 up18,29 down16,26 156 Superior
JSC R-FARM
INN 7726311464 Moscow
down56,72 up57,66 down3,54 up5,17 down10,38 up16,10 196 High
JSC SOTEX PHARMFIRM
INN 7715240941 Moscow region
up11,80 down9,52 up2,66 down0,98 down38,45 down15,83 151 Superior
JSC PHARMSTANDARD-UFIMSKIY VITAMIN PLANT
INN 0274036993 The Republic of Bashkortostan
up17,33 up20,63 down1,23 up2,42 down7,24 up10,07 187 High
JSC RICHTER GEDEON-RUS
INN 5011016121 Moscow region
up12,84 up13,74 up0,19 down0,02 up6,63 down3,93 213 Strong
Total for TOP-10 companies up191,47 up204,28 up24,59 up29,91    
Average value for TOP-10 companies up19,15 up20,43 up2,46 up2,99 down37,65 down29,94
Average industrial value up0,34   up0,03   up25,32  

Up growth decrease of indicator to the previous period, Down decrease of indicator to the previous period.

Average value of the product profitability ratio of the TOP-10 group is higher than the average industrial and practical values of 2017. Four companies have improved their results in 2018.

Picture 1. Product profitability ratio and revenue of the largest Russian pharma companies (TOP-10) Picture 1. Product profitability ratio and revenue of the largest Russian pharma companies (TOP-10)

Over a ten-year period average industrial values of the product profitability ratio had increasing tendency. (Picture 2).

Picture 2. Change in the average industrial values of the product profitability ratio of Russian pharma companies in 2008 – 2017 Picture 2. Change in the average industrial values of the product profitability ratio of Russian pharma companies in 2008 – 2017