This report covers the market developments in FY 2013 and the data available as of October 2014.

The Polish pharmaceutical market resumed growth in 2013, partly on low-base comparison, yet visibly, albeit slowly, recovering after the decline in 2012, when the entire pharma sector was affected by the price cut for reimbursed drugs, as part of the Reimbursed Act enforced and amended during the year.

The market rebound was visible in the first nine months of 2014 as well, yet for the full year results the flu season might make a difference for pharmacies considering the high base comparison in 2013. The pharmacies continue to be negatively affected by the fixed retail margins on reimbursable drugs, the frequent changes to the reimbursable drug list and the pharmacy advertising ban.

The OTC sales continued to record dynamic annual growth in 2013, partly on low base comparison, but also fuelled by high demand in the context of long winter and high incidence of seasonal infections. In January-August 2014 the OTC sales inched down marginally y/y and the full year growth pace is expected to be lower than in 2013, yet the incidence of diseases during the cold season might drive sales upwards towards the yearend.

The pharmaceutical market is expected to continue on upward path this year, but at a slower pace compared to 2013. At pharmacy retail level, the market is expected to grow by approximately 2-4% y/y, while at distributors’ level the market is forecasted to grow by around 3-6% y/y in 2014, according to players’ estimates.

Key points:
• Pharmaceutical sales value returns to y/y growth in 2013
• Market rebound is further visible in Jan-Sep 2014
• Parallel exports surge, driven by low drug prices
• Profitability, revenues of top distributors improve y/y in 2013
• Polpharma plans investments in two production facilities
• Neuca to broaden activity range, plans developing medical clinic chain
• Pelion takes over cosmetics chain Drogerie Natura
• Neuca acquires two clinic operators in July 2014, health centre later in October