Ukraine is the second largest pharmaceutical market in the Commonwealth of Independent States (CIS). Per capita health expenditure is low, even at East European standards. This is due to the fact that almost all funding is out-of-pocket, relying on the abilities of patients to pay for health treatment and drug purchases. Though the introduction of a system of public health insurance has been under discussion for several years, currently there is no insurance coverage or drug reimbursement in place. The market is strongly import- driven and is expected to continue growing on a steady pace as older and less effective medicines are being substituted by branded generics and imported innovative medicines. The increase in average price per pack and the high tendency for self-medication among the general public further fuel market growth and present favourable conditions for companies, which are willing to expand their operations to Ukraine.