Katarzyna Pogorzelczyk1, 2, Marta Gallas3, Marlena Robakowska4, Malgorzata Wojnarowska4, Przemyslaw Zuratynski1, *Daniel Slezak1, Sylwia Jaltuszewska5
Quantitative analysis of changes in the pharmaceutical market
Analiza ilościowa zmian na rynku farmaceutycznym
1Department of Emergency Medicine, Faculty of Health, Medical University of Gdansk, Poland
2Cathedral of the Economic Policy, Economic Department, Medical University of Gdansk, Poland
3Department of Nursing Management, Faculty of Health, Medical University of Gdansk, Poland
4Department of Public Health and Social Medicine, Faculty of Health, Medical University of Gdansk, Poland
5Institute of Theories about the Health, Plant of the Medical Rescue, Pomeranian Academy in Slupsk, Poland
Światowy przemysł farmaceutyczny jest obecnie wart ponad 2 tryliony dolarów amerykańskich, przy stale rosnących jednocyfrowych perspektywach wzrostu w nadchodzących latach. Celem pracy jest analiza zmian gospodarczych zachodzących na polskim rynku farmaceutycznym w odniesieniu do sukcesywnie wprowadzanych zmian legislacyjnych regulujących kształt tej gałęzi gospodarki. Materiałami użytymi do przeprowadzenia analizy są akty prawne regulujące prawo farmaceutyczne, raporty i broszury ekonomiczne na temat rynku farmaceutycznego. Opisano literaturę zagraniczną i krajową przedstawiającą zmiany gospodarcze na polskim rynku farmaceutycznym. Pomimo znaczących zmian, które były odpowiedzią na konkretne potrzeby lub problemy występujące w sektorze opieki zdrowotnej, ze względu na charakterystykę tej części polityki społecznej, zamiast istniejących komplikacji powstały nowe.
The global pharmaceutical industry is currently worth over two trillion US dollars, with a steadily growing single-digit growth outlook in the coming years. The aim of the study is to analyze the economic changes taking place on the Polish pharmaceutical market in relation to the successive legislative changes regulating the shape of this branch of the economy. The materials used for the analysis are legal acts regulating pharmaceutical law, reports and economic brochures on the pharmaceutical market. Foreign and domestic literature presenting economic changes on the Polish pharmaceutical market is described. Despite significant changes, which were a response to specific needs or problems occurring in the healthcare sector, due to the characteristics of this part of social policy, instead of the existing complications, new ones were created.
Key words: analysis, pharmaceutical market, pharmacy market
The global pharmaceutical industry is currently worth more than two trillion US dollars with constantly growing single-digit growth prospects for the coming years.
The number one for the global pharmaceutical industry is the United States (28% of total global turnover), the European Union is second together – all Member States (15%) and Japan is third, with a slightly lower result than the EU – 12%. The first three places in the ranking, which were described above, are responsible for nearly 55% of the total value of pharmaceutical sales in the world (1).
As the analysts of the pharmaceutical industry estimate, the coming years will be directly associated with the development of economies known as developing markets (the so-called pharmerging markets). Their characteristic feature is the tendency to spend more and more on health care. As is also mentioned, China will boast the largest share in this group. The two most anticipated or anticipated trends for the development of the industry are the expansion of the generic drug market and the use of the rapidly growing field of biotechnology as the basis for the production or research on innovative drugs.
Pursuant to subsequent amended amendments to the Pharmaceutical Law, which have been consecutive for almost eighteen years, changes in economic issues have been noted on the pharmaceutical market. They affect both macro and microeconomic environments.
The purpose of the work is to analyze economic changes occurring on the Polish pharmaceutical market in relation to successively introduced legislative changes regulating the shape of this branch of the economy.
Material and methods
The materials that were used to perform the analysis are legal acts regulating pharmaceutical law, reports and economic brochures on the subject of the pharmaceutical market.
An analysis of foreign and domestic literature was described describing the economic changes in the Polish pharmaceutical market.
The main aspects analyzed are the development of the wholesale market, retail sales, drug demand, online sales and the reverse distribution chain (2).
Despite significant changes that were a response to specific needs or problems occurring in the health care sector, due to the characteristics of this part of social policy, in place of the existing complications, new ones were created.
The years 2004-2005, and the time immediately preceding the period in question, i.e. 2003, mainly thanks to Poland’s accession to the European Union, were defined as those that give potentially great opportunities for further development to the domestic pharmaceutical market. These years, in specialist literature, are called the time devoted to seeking the correct shape of this particular branch of the economy – legal and economic – based on the experience of other European countries (3). An equally important issue for this large one, in the context of the country’s entry into the Community framework, was to determine the actual market structure. In relation to the European Commission’s considerations at the time, the priority of decision-makers from among those directly related to Polish drug policy became the selection of priority drug groups from the then adopted sixteen categories – taking into account their medicinal properties/production procedures (4). However, despite the regulations imposed from above, the executive power itself, characteristic of the European community, uses market terms in terms of geography based on the differences in legal regulations, system differences and the method of refinancing healthcare in individual countries. Since then, the Polish pharmaceutical sector has been implementing its activities in four basic branches: sales from the producer, pre-wholesale, wholesale, to the hospital market and pharmacy sales.
The Polish market, compared to the domestic market in 2001, when the main act dealing with the modern outline of pharmaceutical law was introduced, recorded a continuous increase reaching at the beginning of 2012 the value of PLN 22.3 billion (in 2004 it was 13.2 billion) (5).
At the end of 2017, the Polish pharmaceutical market once again recorded a significant increase in value and thus jumped over the threshold of PLN 38 billion. The most important factor in this growth was the hospital pharmacy segment. It accounted for slightly over 15% of the total market value, but what is worth mentioning is its share – 25%, in total appreciation of value.
The changes discussed above are primarily the consequences of the continuous development of the drug programs and chemotherapy therapies sector, which are being introduced with newer, more often innovative drugs with increasing therapeutic costs. To sum up, the overall rate of total increase in the market value of the hospital pharmacy sector in 2017 was close to 10% (PLN 560 million more than in 2016).
The pharmacy market
Pharmacy outlets met with 3.8% dynamics, which also resulted in revenues of nearly PLN 1.2 billion higher than in 2016. The segment of OTC drugs and products – OTC products – was the fastest-earning segment of the pharmaceutical industry. It brought over PLN 723 million. E-pharmacies and online sales, which offer medicines that do not require a prescription issued by white personnel, as in the case of the above parts of the pharmaceutical market, have seen an increase. The final result was over PLN 80 million (6).
It is estimated that this jump was generated by products from two classes: vitamins and minerals (increase by about PLN 15 million) and milk for children (jump by 13 million). The third group that definitely stands out from the first two are cosmetics for women. It achieved more than a twice lower jump in value compared to 2016. This may mainly result from the competition of “non-pharmacy” products available in drugstores or kiosks with a much lower price for one package.
The segment of the pharmaceutical market, which is invariably one of the most profitable, is the segment of reimbursed drugs. Unfortunately, given the increasing restrictions on the part of legislation, this group has been recording a steady decline in the value of sales for several years. Other factors affecting this downward trend are primarily: forced decreases in drug prices for specific limit groups. It may be associated primarily with the possibility of using drug substitutes purchased in pharmacies.
Production of the Polish pharmaceutical market
In the years 2004-2016, all drugs that were offered within the country came from several dozen manufacturers – with Polish and foreign capital. However, focusing on the value of drug sales, half of the achieved amount was generated by the ten largest foreign but also domestic producers. As the Azyx report presented at the end of 2006, there were 116 of them in the country. Surprising information also turned out that the first 50 positions on the list of the largest concerns implementing their activities in Poland had nearly 85% of the market. However, looking at the actual level of concentration of this branch of the economy in the years 2004-2006, one can notice its weak concentration. The level of HHI2 (Herfindahl-Hirschman Index) did not exceed 400 points, while (C4)3 – the sum of the joint market share, characteristic for the four largest producers, did not exceed the result of 28%.
At the end of 2006, the number one in terms of sales was the domestic Polpharma S.A. The first place was achieved with a result of about 10% of the total market sales value. On the next steps of the podium were also respectively – GSK and Servier achieving exactly – 8 and 6%. What should also be noted, from 2003 to 2006, sales values were steadily increasing while the number of drug packages issued was falling (7).When preparing the analysis of the Polish drug production market, it is also important to understand the characteristics of medicines and medical devices themselves. Here, in the years 2004-2006, generic drugs (88% of domestic production) were both produced and sold, and vice versa, the situation was for foreign companies – nearly 60% of the drugs they offered were innovative (5). It was the result of opening borders as well as increasing import possibilities on the basis of legal acts determining both Poland’s accession to the European community and the need to minimize the equations in the field of domestic market activity in relation to foreign markets.
The pharmacy or pharmacy is called the main retail outlet for pharmaceutical products. Its scope of activity depends primarily on existing legal conditions.
In Poland, according to the information of the Supreme Pharmaceutical Chamber, at the beginning of 2018, there were over 14,000 such establishments. Very strong product price competition, ever-increasing costs of the operation process of this type of activity, the constant need to initiate newer marketing and promotional projects as well as having the ability to conduct trade negotiations determined in their nature have resulted in an increasingly weaker form of coping with pharmacies on the market (8).
There are currently nearly 200 different pharmacy chains operating throughout the country. They consist of several to even over several hundred retail outlets grouped into one network. Branches in the network have the right to belong to one or several owners described in the National Court Register, or to focus in unity using loyalty programs and partner programs.
The processes of connecting pharmacy outlets into specific networks is a good solution for entities that are susceptible to numerous transformations – both legal and economic.
The already affiliated branches unite by adopting a common form of purchasing and marketing policy. This process is referred to as the use of scale effect. This means that at incurring certain costs – which were probably of a similar scale as to the moment of joining the network, they receive a cumulative result – including wider range of recipients (6).
Powyżej zamieściliśmy fragment artykułu, do którego możesz uzyskać pełny dostęp.
Płatny dostęp do wszystkich zasobów Czytelni Medycznej
1. Raport o globalnej wartości rynkowej; http://www.rynekzdrowia.pl/Farmacja/Raport-wartosc-globalnych-rynku-lekow-w-2021-r-wykorzyst-1-5-bln-USD,168467,6.html (dostęp 22.11.2019).
2. Pex PharmaSequence, Polityka narkotykowa – praca dyplomowa, raport przygotowany we współpracy z Instytutem Ochrony Zdrowia. Warszawa 2017: 1.24.
3. Raport z badań rynku hurtowego handlu narkotykami w Polsce, Urząd Ochrony Konkurencji i Konsumentów. Warszawa 2006: 1.15.
4. Komisja Europejska, numer sprawy: IV/M.072 Sanofi/Sterling Drug.
5. Raport – rynek farmaceutyczny; https://www.pb.pl/ims-health-rynek-farmaceutyczny-wzrosl-w-okresie-i-xi-o-81-292279 (dostęp 22.11.2019).
6. IQVIA: Raport: rynek farmaceutyczny w 2017 r. Warszawa 2017.
7. Raport z badania rynku hurtowego handlu narkotykami w Polsce. Urząd Ochrony Konkurencji i Konsumentów. Warszawa 2006.
8. Przemysł farmaceutyczny w Polsce i na świecie; https://www.controlengineering.pl/branza-farmaceutyczna-w-polsce-i-na-swiecie/.
9. Kula P: Raport: Polski rynek apteczny – szanse i zagrożenia. Pharma Expert, Warszawa 2017: 1.10.
10. Prawo farmaceutyczne z dnia 6 września 2001 r. (Dz. U. 2001, nr 126, poz. 1381).
11. Sterna LW: Kanały dystrybucji: wymiary behawioralne. Houghton Mifflin Company, Nowy Jork 1969: 29-31.
12. Religioni U: główni uczestnicy kanałów dystrybucji na rynku farmaceutycznym. Probl Hig Epidemiol 2012; 93(3): 478-483.