The Polish retail pharmaceutical market grew by 4.7% y/y in 2015, with reimbursed prescription drugs providing the greatest growth momentum.
IHS Life Sciences perspective | |
Implications | Sales of reimbursed prescription drugs grew 7.3% y/y, and, with very few new innovative medicines being included in the list of products available from pharmacies with reimbursement in 2015 and restrictive pricing policies, the main factor in this is likely to be growth in demand. |
Outlook | The financial plan of the NFZ for 2016 foresees a moderate reduction in the amount paid out in reimbursement for prescription drugs via pharmacies, which may curb the growth rate in this segment of the market this year. |
Retail pharma market up 4.7% y/y
Poland's retail pharmaceutical market grew by 4.7% year on year (y/y) in 2015 to reach a value of PLN29.836 billion (USD7.427 billion), according to figures from Polish pharmaceutical research organisation PharmaExpert based on retail sales prices. The most dynamic growth was seen in the sales of reimbursed prescription medicines, which grew 7.3% y/y to PLN11.233 billion. Sales of over-the-counter (OTC) medicines, which remained the best-selling segment in the retail sector in Poland, grew steadily, by 2.3% y/y, while sales of non-reimbursed prescription medicines were up by 5.4% y/y.
Polish retail pharmaceutical market | ||
2015 sales value, PLN bil. | Y/Y, % change** | |
Total market | 29.836 | 4.7 |
Reimbursed prescription medicines* | 11.233 | 7.3 |
OTC medicines | 11.813 | 2.3 |
Non-reimbursed prescription medicines | 6.600 | 5.4 |
Source: PharmaExpert *Includes reimbursement and patient co-payments **Y/Y growth figures are based on comparison with PharmaExpert data from 2014. | ||
Reimbursement increases by 3.5% y/y
According to PharmaExpert's data, the value of reimbursement paid for pharmaceuticals via community pharmacies in 2015 amounted to just under PLN7.9 billion, which was 3.5% higher than in 2014, based on its calculations. Considering that it calculated the reimbursement paid out in 2014 was approximately PLN7.6 billion, with the total value of the sales of reimbursed prescription drugs amounting to PLN10.466 billion, there was a small reduction in the proportion of the cost of reimbursed drugs paid by patients.
Outlook and implications
The figures show that the value of the Polish retail pharmaceutical market grew for the second successive year beyond the level it reached in 2011, the year before the introduction of the Reimbursement Act, which was the catalyst for a significant reduction in the market's value in 2012. The growth in 2015 was despite the fact that very few new innovative medicines available from community pharmacies were added to the reimbursement list last year. It was also in spite of frequent changes to the reimbursement list that resulted in marked reductions in reference prices, making a sheer increase in demand the most likely reason for the growth.
Although sales of OTCs grew at a considerably less dynamic rate, their steady sales growth shows the resilience and continued importance of this market segment in Poland. A restrictive and challenging pricing and reimbursement system has resulted in some pharmaceutical companies focusing more efforts on the OTC sector in Poland, where prices are not subject to controls. This can also be said of retailers and wholesalers, which do not have fixed margins on OTCs, unlike in the case of reimbursed medicines. The challenging nature of the Polish regulatory system also leads to some producers opting not to apply for reimbursement for their products, and the continued growth of the non-reimbursed prescription sector shows that this remains a competitive market segment.
The financial plans of the National Health Fund (NFZ) for 2016 shows a slight drop in reimbursement for medicines available from community pharmacies, meaning that last year's dynamic growth may not be repeated this year.