Factors Such as the Growing Elderly Population Will Provide the Necessary Impetus for the Growth of the Polish Pharmaceutical Market, According to a New Study on ASDReports

Monday 18 August 2014, Amsterdam

The pharmaceutical industry plays a key role in Poland’s healthcare system and economy. It was valued at $8.6 billion in 2013 and is projected to reach $15 billion in 2020 at a Compound Annual Growth Rate (CAGR) of 8.3% (AESGP, 2014). The pharmaceutical market had decreased from $8.8 billion in 2011 to $7.1 billion in 2012 due to the implementation of the new Reimbursement Act by Poland government in 2012, but has since partially recovered. According to the new act, the prices of the reimbursed drugs were decreased and the profit margins for wholesalers and retailers were also reduced, which impacted the pharmaceutical market negatively. The highest mark-up possible for reimbursed medicines was reduced from 9.78% in 2011 to 7% in 2012 and then to 6% in 2013. The VAT on pharmaceuticals and medical devices was 8% (ISPOR, 2013; EC, 2014). In 2013, the pharmaceutical market recovered and reached $8.6 billion due to an increase in demand for and consumption of pharmaceuticals (ISPOR, 2013).

Generic drugs have a dominant position in the pharmaceutical market. In 2012, the share of generic drugs was 66% of the pharmaceutical market, which increased from 62.2% of the total pharmaceutical market in 2011.

The prices of pharmaceuticals are lower in Poland than in other European Union (EU) member countries. These low prices enhance the affordability of pharmaceuticals, boosting the pharmaceutical market.  

The cap on the reimbursement budget for drugs was decreased from 21% in 2010 to 17% in 2011 of the National Health Fund (Narodowy Fundusz Zdrowia, NFZ), so patients now have to pay more for their treatment. The NFZ administers funding and contracts providers to provide healthcare services, both for prophylaxis and therapy. The majority of resources are allotted to in-patient treatment, followed by reimbursement of medications, out-patient general care and specialized out-patient care. The value of the NFZ’s total drugs reimbursement decreased from PLN8.8 billion ($3 billion) in 2011 to PLN6.9 billion ($2.1 billion) in 2012. The decrease in the reimbursement budget would negatively affect the overall pharmaceutical market.

In Poland, the government has taken steps to increase R&D expenditure. In 2013, the expenditure on research in healthcare has been estimated at $633.5m, from $300.8m in 2008. The healthcare R&D increased at a CAGR of 22.6% over the 2008–2013 period (CSO, 2014c).

The major multi-national pharmaceutical companies in Poland are Sanofi, Novartis, GlaxoSmithKline (GSK), and Roche. Polpharma is the major local player in Poland. In Poland, imports of pharmaceuticals accounted for $4.9 billion of the total pharmaceutical market in 2013.

The medical device market was worth $2.2 billion in 2013 and is projected to reach $2.8 billion by 2020, at a projected CAGR of 3.6%. In Vitro Diagnostics (IVD) (20.3%), ophthalmic devices (18.3%), and cardiovascular devices (13.4%) were the major segments in the medical device market in 2013. With a rapidly growing elderly population and awareness of chronic diseases rising, the medical care and diagnostic markets are expected to see strong growth in the future.