Pharmaceutical Giant «Darnitsa» Faces Major Decline: Production Halted, Thousands of Employees Laid Off, Market in Uncertainty
Last year, Ukraine’s pharmaceutical manufacturer «Darnitsa» experienced one of the most challenging periods in its history, marked by a significant decline in sales and substantial staff reductions.
Throughout the current year, the company was forced to suspend production twice — in March and during the summer months — which critically affected its operations and financial stability.
Reports released by «Commercial Ukrainian» indicate that due to losing half of its sales volume, «Darnitsa» had to lay off over a thousand employees.
This resulted in a decline in market position and eroded consumer trust.According to economist Anatolii Amelin, by June 2025, the producer lost up to 30% of its sales compared to the same period in the previous year, with this figure increasing to 50% by August.
Consequently, the company fell from second to fourth place among Ukraine’s largest pharmaceutical manufacturers.
The key reason for this crisis, as identified by experts, is the conflict between the manufacturer and major wholesale and pharmacy chains, which control about 70% of the Ukrainian pharmaceutical market.Initially, the conflict was linked to regulatory changes introduced by the government aimed at lowering drug prices.
Media reports indicated that in February 2025, President Volodymyr Zelensky signed a decision by the National Security and Defense Council to reduce prices for the top 100 medicines by 30% and prohibit marketing payments between producers and pharmacy networks.
However, at the end of 2024, «Darnitsa» increased its drug prices by 120%, which sparked outrage and became a catalyst for the ongoing dispute.Starting from March 2025, the five largest pharmacy chains — «ANC», «Podorozhnyk», «Apteka 9-1-1», «Zdorovya» and «Dobro dyan» — sharply cut their purchases of «Darnitsa» products, significantly aggravating the crisis in Ukraine’s pharmaceutical sector.