The Kanzas company provides independent valuation of pharmaceutical inventory in Ukraine — medicines and medical products held as stock by pharmaceutical distributors and pharmacy chains. International groups operating in the Ukrainian pharma distribution market, their lenders and auditors order this valuation when stock is pledged as collateral, sold in a restructuring or liquidation, or measured for IFRS group reporting.
Pharmaceutical stock has a pricing logic of its own: the value of a lot is driven to a large extent by remaining shelf life and the liquidity of individual line items. Our work with the assets of pharmacy chains has included the valuation of their commercial stock balances, so those drivers are built into the analysis rather than bolted on.
What pharmaceutical stock we value
- finished medicines, both prescription and over-the-counter;
- medical devices and consumable medical materials;
- vitamins, dietary supplements and dermocosmetics;
- pharmaceutical raw materials and substances;
- stock balances at distributor warehouses and across pharmacy chains.
When international clients need this valuation
- Collateral for lending — stock balances pledged to banks financing distributors and pharmacy chains;
- Stock disposals — realization of inventory in restructuring, liquidation or insolvency scenarios;
- IFRS reporting — inventory measurement for group accounts, including write-downs of short-dated and slow-moving lines to net realizable value under IAS 2;
- Transactions and corporate purposes — purchase and sale of commercial lots, contribution to charter capital, shortage disputes and enforcement proceedings in Ukraine.
What drives the value of pharmaceutical stock
- remaining shelf life — the key driver: the closer to expiry, the lower the liquidity and the value;
- product name, dosage form and market demand for the line;
- batch (series) and volume;
- storage conditions and cold chain compliance;
- marketing authorization and permit documents for circulation.
Methodology
Pharmaceutical stock is valued as inventory primarily under the sales comparison approach of the Ukrainian national standards, consistent with the International Valuation Standards (IVS): wholesale market prices for the relevant line items, adjusted for remaining shelf life, volume and liquidity. The cost approach plays a supporting role in specific cases. Lines with minimal remaining shelf life may be priced down to near-unsaleable levels — the report shows this transparently, line by line, which is exactly what an auditor testing net realizable value expects to see.
Identifying the stock: inspection and documents
A physical inspection is mandatory under Ukrainian valuation law: the valuer identifies the stock at the place of storage, reconciling line items, batch numbers and volumes. The visit is arranged with the warehouse operator — the client's presence in Ukraine is not required.
Typical document set:
- a stock schedule with product names, batch numbers, quantities and expiry dates;
- documents confirming title to the stock balances;
- marketing authorization and circulation permits, where available;
- book value data for the inventory.
Send the stock schedule and the purpose of the valuation to [email protected] — we will quote a fixed fee and timeline. Two decades of practice with goods in turnover and healthcare sector assets stand behind reports that hold up before banks and auditors.
Questions and answers
How much does a pharmaceutical inventory valuation in Ukraine cost? The fee and timeline are quoted once you send the stock schedule — product names, batches, quantities, expiry dates — and the purpose of the valuation. Scope and a fixed price are agreed before signing.
Do you assess the quality or fitness of the medicines? No. Quality control and fitness of medicinal products are the competence of quality assurance services and state regulators, not of the valuer. We determine the market value of the stock on the basis of the data provided on product names, batches, volumes and remaining shelf life.
How does remaining shelf life affect the value? Directly and materially. The less time remains to expiry, the lower the liquidity of the line: such stock is harder to sell, and its value falls. Lines with minimal remaining shelf life may be valued at near-zero, and the report discloses this by line item — the basis for any write-down decision.
Related services: Valuation for secured lending · Fixed asset revaluation · War damage assessment
