# AI Forecasting that Drives Business Impact

> How Darnytsia Pharmaceutical boosted growth by 10% and cut cloud costs by 22% with Nixtla's TimeGPT AI forecasting engine

Canonical HTML: https://www.nixtla.io/success-stories/darnytsia

## Customer

- Name: Darnytsia Pharmaceutical
- Industry: Pharmaceutical, Healthcare

How Darnytsia Boosted Growth by 10% & Cut Cloud Costs by 22% with Nixtla's TimeGPT AI Forecasting Engine, even during wartime disruptions

## Key results

- **10% Growth in Revenue:** Achieved through data-driven decision making and optimized inventory management, even during market volatility
- **22% Reduction in Cloud Costs:** Significant infrastructure savings while improving forecasting performance and operational efficiency
- **30x Faster Forecast Generation:** Near-instant, highly accurate predictions across thousands of products, enabling rapid response to market changes

## Overview

Darnytsia is Ukraine's largest pharmaceutical company and a strategic pillar of the nation's healthcare system, with over 90 years of history, a portfolio of 180+ products in 15 dosage forms, and exports to 17+ countries

Despite the war, Darnytsia demonstrated remarkable resilience by maintaining uninterrupted production through the 2022 Russian conflict while growing revenues by 32.8% in 2023. The company's state-of-the-art facilities can produce over 4 billion tablets and 400 million ampoules annually, alongside tens of millions of vials of antibiotics and infusions
Internationally GMP-certified and expanding rapidly, Darnytsia has pivoted toward innovation, digitalization, and R&D to drive efficiency in a volatile environment. This forward-looking approach earned the company's Digital Transformation Director the "Best CIO 2023" award in Ukraine's Chemistry and Pharmaceuticals category

## The Challenge

War created unprecedented challenges for Darnytsia, making traditional forecasting models inadequate and requiring new approaches to maintain operations and growth
- Manual forecasting processes prone to error
- Inconsistent forecast accuracy affecting inventory planning
- Time-intensive data analysis limiting strategic decision-making

## The Solution

TimeGPT gave Darnytsia a scalable forecasting engine built for uncertainty. It integrates multiple data streams to deliver fast, accurate forecasts even during unpredictable market disruptions
- Implemented TimeGPT API for automated demand forecasting
- Integrated with existing BI tools for seamless workflow
- Deployed custom dashboards for real-time forecast monitoring

## Business Outcomes

Immediate and long-term strategic value
- **Operational Excellence**
  - 30x efficiency improvement in forecasting speed
  - 22% reduction in cloud computing costs
- **Financial Impact**
  - 10% revenue growth through better decision-making
  - Optimized inventory reducing carrying costs
- **Strategic Advantage**
  - Faster response to market changes
  - Improved competitive positioning in volatile environments

## Testimonial

> TimeGPT's forecasting accuracy and speed transformed our operations. We've reduced stockouts while simultaneously decreasing inventory costs – a winning combination we hadn't achieved with previous solutions like statistical models (e.g., Auto ARIMA) and ML algorithms like Facebook Prophet

Serhii Kolchyk, Head of Analytics and Digital Innovation