Report describes diverse operations; forecasts development for 2014-2019.
What percentage of pharmacies in Poland are chain-owned and operated? Which chains maintain the largest number of stores? How many pharmacies are currently in operation in Poland? How does this number compare with the total number of potential consumers? Which wholesaler/pharmacy relationships are most important? Which types of loyalty schemes are most effective? How valuable is the online segment of this market? How have regulations affected online distribution?
For complete answers to these questions and many more, turn to Distribution on the pharmaceutical market in Poland 2014, Development forecasts for 2014-2019, the latest edition of PMR’s comprehensive and insightful business publication. This exceptional report contains the latest data describing the total number, concentration and value of wholesale operations, status and activity of leading retail pharmacy chains, providers of pharmaceuticals to hospitals and direct and online operations.
This document examines the outcomes related to Poland’s recent regulatory developments, planned and currently in place. It is accompanied by a separate Excel document, Database of independent pharmacy chains in Poland, which provides essential information about 100 top companies operating stores across the country. Readers will learn about both independent and franchise chains, as well as the total number of pharmacies as compared to Polish residents.
The report profiles the top pharmaceutical wholesalers on the Polish market, including data on market share, revenue, and strategic outlook. Location information is provided for each, resulting in wholesaler concentration updates. It explores a wide range of market-oriented topics, from pharmaceutical purchasing groups to commonly used wholesaler/pharmacy loyalty schemes and significant relationships between top companies.
This unique publication offers parallel import totals for Poland’s leading pharmaceutical companies, examines direct distribution operations on this market and provides separate sales totals for top pharmaceutical companies maintaining online operations. It presents comprehensive forecasts for market segments and all types of distribution on Poland’s pharmaceutical market for the years 2014-2019.
Distribution on the pharmaceutical market Poland 2014, Development forecasts for 2014-2019 was created to support the business decision making processes of executive and marketing professionals involved in wholesale and retail distribution of pharmaceuticals in Poland. Past editions have also been successfully utilised by leading pharmacy chains, all types of distributors active on the market and logistics and investments specialists interested in the potential of this expanding market.
Clients have revealed that the publication is an important asset when planning the launch of a new distribution enterprise on Poland’s pharmaceutical market, expanding a current enterprise, assessing the competition, or locating prospective candidates for mergers and/or acquisitions.
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According to PMR’s report “Distribution on the pharmacy market in Poland 2013. Impact of the Reimbursement Act and development forecasts for 2013-2015”, last year was a period of dynamic growth of pharmacy chains across Poland. As the market environment (in particular after the entry into force of the Reimbursement Act) deteriorates, independent pharmacies find it increasingly hard to operate in the market. This is why PMR expects that pharmacies will continue to develop various forms of cooperation in the future.
The largest pharmacy chains are operated by wholesalers
There are two types of pharmacy chains operating in the Polish pharmaceutical market. The first group are pharmacies linked to wholesalers. A number of them – those which are operated by the leading market players (Pelion, Farmacol, and ACP Pharma/Mediq, which is currently being acquired by Neuka/Penta) – consist of several hundred outlets. There are also smaller pharmacy chains operating in the market, which are owned by regional wholesalers. For example, Krakow-based Hygieia has a chain consisting of several pharmacies located in Krakow.
As a result of the enforcement in 2004 of a regulation in the Pharmaceutical Law allowing a single entity to own no more than 1% of the pharmacies in a given voivodship, companies wishing to expand their pharmacy chains circumvent this rule in various ways. They open pharmacies taking advantages of various capital and other connections created on the basis of civil law contracts.
The other type of pharmacy chain consists of pharmacies with no connections to wholesalers (independent chains). In this group, no player controls more than 100 pharmacies, and most chains comprise fewer than 20 outlets.
Situation of pharmacies impacted by the Reimbursement Act
The Reimbursement Act had a significant impact on the reduction of revenue of pharmaceutical wholesalers (primarily as a result of reduced margins and drop in drug sales).
Moreover, the situation of pharmacies was negatively affected by aggravated conditions of cooperation with pharmaceutical wholesalers that themselves suffer from implications of the Reimbursement Act, reflected e.g. in reduced frequency of supplies, shorter payment deadlines, reduced credit limits and general modification of commercial terms and conditions.
Pharmacy chains also recorded a decrease in revenue as a result of the entry into force of the Reimbursement Act. Because of new legal regulations, they can no longer negotiate better supplies of reimbursed drugs with manufacturers and wholesalers and sell them at very low prices, which used to be their way to attract many customers. In addition, outlets belonging to pharmacy chains are often located in the most expensive areas of the cities, often in shopping centres. Costs of running business at such locations are even 30% higher than e.g. in housing estates.
Pharmacy chains to gain half of the market?
PMR expects that pharmacy chains will gain a share of more than 50% in the Polish pharmaceutical market within the next several years due to the dynamic growth of their operations. PMR expects both the development of new pharmacy chains and the growth in the number of existing pharmacies. Chains which plan to expand their operations include Apteki Zdrowit, Ziko Apteki, Grupa Moja Farmacja, Grupa Apteki Curate and Grupa Bliska Apteka.
Penta strengthens its market position
The disposal of ACP Pharma/Mediq’s wholesale and retail divisions has been the most important development in the pharmaceutical distribution market in Poland in the last couple of months. Neuca acquired the operations from Advent International in a PLN 432m (€103m( deal. Concurrently, Neuca and Penta, a private equity fund, executed an agreement for the sale of Mediq’s pharmacy operations. The agreement was valued at PLN 228.7m (€55m). Both transactions are being reviewed by the Office of Competition and Consumer Protection (UOKiK).
When the acquisition of around 270 company-operated and frachnise outlets run by Mediq is completed, Penta will have significantly strengthened its position in the market of pharmacy chains where it operates through Dr. Max (around 70 pharmacies). The fund expects that Mediq’s pharmacies will be rebranded within one year or so of the official transaction completion date. Concurrently, Penta eyes the Polish pharmacy market and says that more acquisitions of smaller market players are possible in the future.
The material was prepared in September, 2013.