PHOENIX Pharma Polska

• net sales EUR 348 million
• personnel 321
• market share 3.7% (31 December 2006)

Market overview

GDP growth in Poland clearly exceeded 5% in 2006. However, pharmaceutical market growth slowed down in 2006 and grew by only 4.2%, compared to 6.7% in 2005. The pharmaceutical retail market grew by only 3.6%, whereas the hospital market’s growth rate was 8.7%. In 2006/07, Tamro’s sales in Poland totalled EUR 348 million.

The price cuts on selected reimbursable and imported pharmaceuticals were the main driver for the slowdown in market growth.

Further governmental cost containment measures and restrictions for pharmacies and wholesalers were proposed, such as prohibiting advertising, internet pharmacies and discounts on RX products.   

The number of pharmacies continued to increase steadily and already exceeded 12,500 by the end of last year. The number of inhabitants per pharmacy is down to 3,000 – with a per capita consumption of just around EUR 104. This has led to tougher competition and more pressure on independent pharmacies.

The wholesale market was characterised by fierce competition and wholesale consolidation. The key marketing tool is to establish loyalty chains, thus binding independent pharmacies. According to Tamro’s estimation, more than 5,000 pharmacies have already joined the TOP 7 wholesalers’ loyalty programmes.

Despite the challenging market environment, PHOENIX Pharma Polska managed to keep its position.

Main events

At the beginning of 2006, Stefan Pflug was appointed Managing Director for PHOENIX Pharma Polska. The first important measure to strengthen the company’s position was the acquisition of FarmPlus, a strong and well-known pre-wholesaler based in Warsaw. Both entities, PHOENIX Pharma Polska and FarmPlus, developed well during 2006.

The pharmacy loyalty programmes, focusing on different product segments such as OTC and diabetes, were continued.

Outlook for 2007/08

The year 2007, too, is expected to be challenging for pharmaceutical players. Consolidation on the wholesale side is expected to continue or even accelerate due to the announced cost containment measures by the government. This is also an opportunity for PHOENIX Pharma Polska to further strengthen its market position. In retail, the pharmacy chain trend will continue. A new pharmaceutical law is under discussion. Its implications are still unclear, but the market growth is anticipated to be modest, less than 1%. In the long-term, however, Tamro believes that Poland has significant growth potential.

Key figures