Lithuanian-owned pharmaceutical company “Norameda” opened a branch and an online pharmacy in Poland nearly two years ago. According to Arvydas Norvaišas, CEO of “Norameda” Poland, the neighboring country’s market is full of challenges, yet it remains attractive.
“The value of the Polish pharmaceutical market is around EUR 9.4 billion and continues to grow. In 2022, the market value grew by 14.1%, and a further 10% growth is forecast this year (up to EUR 10.4 billion),” says A. Norvaišas, Head of “Norameda” Poland.
The strongest growth in 2022 was recorded in the over-the-counter medicines sector at 16.5%, followed by non-reimbursed prescription medicines at 19.8%, while reimbursed prescription medicines grew by 5.1%.
“The main drivers of this growth were inflation and rising medicine prices,” comments A. Norvaišas.
Pressure to Reduce Prices
In 2022, the inflation rate in Poland reached 14.4%. Although the increase in medicine prices was lower than inflation, over-the-counter medicines became 8.6% more expensive, reimbursed prescription medicines rose by 3.3%, and non-reimbursed prescription medicines increased by 8.4%.
“The Polish government is putting significant pressure on all pharmaceutical companies to reduce prices and has slightly reduced the medicines reimbursement budget this year: from EUR 4.14 billion to EUR 4 billion,” says A. Norvaišas. “As a result, introducing new medicines is currently quite difficult. It is no surprise that generic medicine companies are growing. The same applies to Polish pharmaceutical companies, which receive strong government support. There is no formal law requiring it, but if you enter the market with a new product, it is better to manufacture it in Poland or at least conduct research there.”
EU Sanctions Slow Recovery
The Polish market is experiencing post-pandemic symptoms: shortages of certain medicines, fluctuating demand, increasing need for specialized healthcare, and neglected diseases such as diabetes, pulmonology, cardiology, and especially oncology.
“In addition, the EU is penalizing Poland over its domestic policies related to the judicial system. As a result, EU recovery funds after the pandemic are being delayed, while other countries have been using them for quite some time already,” says A. Norvaišas.
There is little optimism, as the Polish government is considering introducing new taxes for pharmaceutical companies.
According to the Head of “Norameda” Poland, another issue Poland is trying to address is the shortage of doctors. Certain measures have already been taken: before 2015, there were only 12 higher education institutions training physicians, whereas now there are 24, and by 2023 the number is expected to reach 27–28. Therefore, the first wave of newly trained graduates is expected this year.
“Norameda” in Poland
“Norameda” has felt the direct impact of the recent challenges and cost-cutting trends in the Polish market. Unfortunately, after several months of hard work, the government rejected a product intended for urology patients due to its “limited impact on society” — despite being life-saving, it was considered too niche.
“Nevertheless, we are doing well with hospital medicines, especially in oncology. I am particularly pleased with the ‘SteriPharm’ product line for family planning and health: supplements for women before, during, and after pregnancy, for breastfeeding support and relief from nausea, as well as products aimed at improving male fertility,” says A. Norvaišas.
The “Norameda” representative also places great hope in long-term cooperation with the pioneer of Parkinson’s disease medicines — it is expected that the product will eventually enter the Polish market.
By the end of the year, several more new hospital products are expected to be added to the “Norameda” portfolio.
“We are also witnessing a renaissance of medical representatives. Although the transition to electronic systems has been enormous, direct contact with doctors has proven to be far more effective, as doctors are eager for regular communication,” says A. Norvaišas.
