This report covers Poland’s pharmaceuticals market, with an overview of the sector and industry trends through 2013. It also includes market forecasts and corporate news for firms including, among others, Mabion, Medicofarma, Farmacol, and Pelion.
The Polish pharmaceutical market slid in the negative area in 2012, after two years of stable annual growth. Pharma sales in gross retail prices dropped by 8.4% y/y to PLN 27bn (EUR 6.5bn) in 2012, driven by a double-digit slump in the sales value of prescription-based medicines. In H1 2013, the market seems to have stabilized, yet has still not returned to previous levels. The Reimbursement Act enforced by the authorities at the beginning of 2012 and amended later in the year reshaped the Polish pharma market, impacting not only patients and doctors, but also producers, wholesalers, and pharmacies. The biggest players have managed to overcome the adverse market circumstances, partly due to the fact that they started restructuring in 2012, but smaller players with a large share of reimbursed drugs in their portfolios were particularly affected.
The pharma market is expected to return to an upward path this year, partly on low-base comparison, and maintain positive annual performance in the coming years. Pharmaceutical sales witnessed a rebound in the first months of 2013, mainly on low base, yet the current positive performance and future encouraging outlook are backed by the other segments of the market apart from the reimbursed prescription medicines, which continue to account for the largest market share.
• In corporate news, biotech company Mabion started the construction of scientific-industrial compound for cancer research, and pharmaceutical producer Medicofarma has taken over pain relief drug manufacturer Marcmed.
• Distributor Farmacol reports expected H2 revenues to be roughly similar to (or slightly higher than) the level recorded in H1 2013. Pharmaceutical distributor Pelion has announced its interest in taking over a European peer and could spend EUR 100-150mn for such an acquisition.
• The value of OTC sales remained roughly stagnant y/y in 2012, even though prior to the introduction of the Reimbursement Act the segment was forecasted to be among the main beneficiaries from the regulatory changes. On the upside, the segment has been gaining increasing share in pharmaceutical companies’ portfolios and the trend is expected to continue, setting enough growth prospects for OTC product sales.
Table of Contents
1. Market overview
1.1 Pharmaceutical sales value down y/y in 2012, while National Health Fund saves 1.2 PLN 2bn on reimbursement expenditure
1.3 Pharma market is expected to return on upward path this year
1.4 OTC sales roughly stagnant y/y in 2012, to resume growth in 2013
1.5 Distributors project PLN 200mn negative impact of regulatory measures in 2014
1.6 Price cuts triggered by new drug reimbursement rules boost medicine exports in 2012
1.7 Polish innovative drug producers stand before major opportunity, as many world patents near expiring
1.8 Polish pharmaceutical companies to invest over PLN 300mn in R&D this year
1.9 Structural round-up in figures
2. Producers - Operations
2.1 Polpharma to spend PLN 250mn on R&D in 2013
2.2 Polfa Warszawa to relocate production out of Warsaw by end-2016
2.3 Adamed starts PLN 20mn investment in new R&D facility near Warsaw
2.4 LEK to invest PLN 125mn in expanding manufacturing facility in Strykow
2.5 Mabion starts construction of cancer drug plant
2.6 Actavis ends joint-venture with bio-tech firm Bioton
2.7 Sanofi launches dermo-cosmetics production line in Rzeszow
3. Producers – M&A
3.1 Polpharma sells OTC antithrombotic drug Polocard to Pfizer
3.2 Medicofarma takes over pain relief drug manufacturer Marcmed
3.3 Polpharma rumoured to be targeting Bioton for takeover
3.4 Mabion sells distribution rights on leukemia drug to Turkish pharma company Onko
4. Distributors - Operations
4.1 Profitability of top distributors improves in 2012, despite sluggish performance of revenues
4.2 Neuca targets PLN 6bn revenues in 2013, plans further takeovers
4.3 Pelion earmarks EUR 150mn for acquisition of European peer
4.4 Farmacol expects H2 revenues similar to H1/2013
5. Distributors – M&A
5.1 Neuca, Penta Investments team up for acquisition of ACP Pharma
5.2 Penta Investments finalises acquisition of Partner Pharma pharmacies, plans further takeovers
5.3 Sepo, Hasco-Lek bid for state-owned distributor CF Cefarm
5.4 Pelion mulls launching IPO of wholesale arm PGF
Release Date: Mon, 04 Nov 2013