Pharmaceutical market

Pharmaceutical market – a combination of stakeholders in the production, sale and consumption of drugs: companies – manufacturers, distributors, pharmacy staff, doctors and management of clinics and hospitals, and directly, the patients themselves.

Such a detailed division of the pharmaceutical market is necessary, above all, for differentiation their needs in proposed drugs (PD).


It is known that in the economy differ only three basic types of markets:


– consumer goods market (FMCG – fast moving customer goods): food, clothing, cigarettes, etc;

– the market of industrial goods (machinery and equipment);

– the market of services: banking, insurance, etc.;


But where is the place of the pharmaceutical market?

On the one hand it seems to have all the signs of FMCG: significance of packaging of goods, the widespread use of advertising in its promotion, the application of merchandising and marketing campaigns. On the other hand, pharmaceutical companies sell not pills – they sell health and “health” – is a service. When you sell services the most important are not the properties of the proposed goods but personal qualities of the seller. Consequently, the first and main feature of the pharmaceutical market can call it duality – on the one hand, it is the importance of the properties of the proposed drug, but on the other – the professionalism of the seller, i.e., Medical representatives of pharmaceutical companies.

The next important difference of the pharmaceutical market is the fact that, in accordance with the current international and national law, no manufacturer has the right to offer their drugs directly to patients – pharmaceutical companies are forced to act via intermediaries, which are doctors of various specialties and employees of pharmacies – dispensing chemists and pharmacists.

 It should be taking into account that the above mentioned mediators in sales themselves, as a rule, are neither consumers nor the buyers of promoted drug (Although almost every doctor in this case requests samples of drugs for “testing. In addition, it is necessary to take into account significant changes in stiffness and slowness of the pharmaceutical market.

Besides the purely technical issues, the rapid appearance of drugs on the market prevents the long process of creation and registration of original drugs. Another feature of the drug market is that the main focus in promotion of drugs is now placed on the work of medical representatives from companies. In this case, the price of this method of product promotion is very high – calculated that the average cost of one visit of the medical representative costs to a pharmaceutical company about $ 20– more cheaper (but less profitable) to provide year-round advertising on television in prime time! Nevertheless, all the pharmaceutical companies go to such high costs due to the fact that no, even the most creative and colorful, ads can not replace a personal relationship arising with the doctor and representative, and, a fortiori, unable to answer your questions (for example, can to wash down with milk the drug?).

Today the pharmaceutical market is one of the dynamically developing areas of the economy of Azerbaijan.

One of the main points of concern to the participants of the pharmaceutical market – is the latest legislative initiatives in the drug market, customs regulation, creation of innovative drugs, and the issue of price controls on pharmaceuticals.

Existing legislation carries out the state control (supervision) in the area of Health and Social protection of population. In order to combat substandard drugs in 2007, the Ministry of Health was carried out radical reforms in pharmaceutical industry in Azerbaijan, and in June the same year was created a special organization – Center of Analytical Examination of medicines. Function of this center is to supervise the quality of imported pharmaceutical products for wholesale and retail markets, quantity analysis of imported drugs, and realization of the state registration – here we are talking about issuing a permit for medical practice in country for five years.

In the middle of 2007 the Cabinet of Ministers approved new rules for drug registration and maintenance of the state register, fully agreed with the experts of the World Health Organization (WHO). Since August 2007 was initiated registration procedure of drugs. This procedure today on the requirements for drugs, is an advanced in the former Soviet space.


Below are the rules of state registration of drugs, a list of necessary documents and requirements.


Rules for state registration and keeping the register of medicines

Annex 1. Statement to the taking of state registration of drugs

Annex 2. Statement to the taking of state registration of medicinal substance

Annex 3. Documents required for registration of medicines, manufactured abroad

Annex 4. Documents for registration of medicinal substance

Annex 5. Documents for the state registration of drugs, produced in the country

Annex 6. Documents for re-registration of medicines, manufactured abroad

Annex 7. Documents for the state re-registration of drugs, manufactured within

the country

Annex 8. List of requirements for labeling of the drug

Annex 9. The requirements to the instruction for use of the drug

Annex 10. The requirements to the instruction for use of the drug