ECONOMIC AND LEGAL PROBLEMS OF FUNCTIONING OF THE PHARMACEUTICAL MARKET OF UKRAINE

The article deals with the current economic and legal problems of the functioning of the pharmaceutical market of Ukraine, it analyzes the subjects of the pharmaceutical market, whose active activity is due to the extraordinary profitability of pharmaceutical products, which is a determining factor in financial flows and those issues that exist in the pharmaceutical industry of Ukraine. Health is one of the most costly spheres for the citizens of any country, and accordingly, one of the most profitable, who carries out such activity. Among the world's industrial sector, the pharmaceutical market is among the five most dynamic and profitable. The pharmaceutical market occupies a significant place in the Ukrainian economy. In the pharmaceutical industry involved more than 400 thousand professionals working in different segments: science, education, production and quality control of medicines, trade, etc. Today, about 30 thousand students study at the departments of the pharmaceutical industry. At the same time, the pharmaceutical industry is significantly different from other industries, as it affects the state of health care of the population, increase of labor productivity, as well as quality and life expectancy of people, which requires the state authorities' responsibility for the quality of medicinal products and pharmaceuticals, their availability for the general population. Along with the positive features of the development of the domestic pharmaceutical market as a healthcare sector, there are a number of negative factors that accompany the activities of both public authorities and business entities in the pharmaceutical market. Despite the crisis situation in the domestic economy, reducing the real welfare of citizens, known events in the eastern part of the country, the price increase for medicines and pharmaceuticals for both domestic and imported production of medicinal products in monetary terms is constantly increasing. According to the results of 2016 (data of the portal apteka.ua), the sales of drugs amounted to 50, 5 billion USD for 1 billion packs; in the dollar equivalent — 1, 98 billion, which is 21, 9% more than in 2015 in the monetary equivalent and 5.7% — in real terms. In January-April 2017, according to the report of Business Credit Company, pharmacy sales in monetary terms in Ukraine were increased by 16% (to 21.335 billion UAH) as compared to the same period in 2016. At the same time, associating the growth of the market share of national producers only with the decrease of the purchasing power of the population, the devaluation of the hryvnia, which affected the positions of foreign companies, the decrease in the share of foreign drugs and, consequently, the withdrawal of foreign pharmaceutical companies from the usual leadership positions in the domestic pharmaceutical market, it would not be quite correct. Except such an important factor as the cost of drugs, the following factors also came to the fore: introduction of innovations in management, investments in the development and modernization of production, as well as expansion of product portfolio due to new proposals. At the same time, the general problems of the functioning of pharmaceutical markets are: the lack of a common unified approach to market regulation; absence of harmonized and related normative legal acts; inconsistency of regulatory acts (Ministry of Health); the initial stage of the introduction of separate programs for reimbursement and reference pricing of medicinal products (it has a number of significant remarks); insufficient development of insurance medicine, etc. The existing system of functioning of the market of medicines allows all chains of product promotion to the end consumer who purchases drugs in the pharmacy, all their financial risks from the influence of objective and subjective factors. Key words: