PHOENIX Pharma Polska

• net sales EUR 363 (348) million
• personnel 359
• market share 3%

Market overview

Last year the total Polish pharmaceutical market amounted to EUR 5,217 million in PPP, up by 10% from for the previous year 2006/07. The pharmaceutical retail market grew by 8.7% (3.6%), whereas the hospital market’s growth rate was (7.1) 8.7%. In 2007/08, Tamro’s sales in Poland totalled EUR 363 (348) million, up by 4%.

The amendment to the Healthcare Service Act came into force during the reporting period. The most important change affecting supplier services is the prohibition to offer individual prices or conditions to other wholesalers on refundable products. According to the new law, pharmacies can no longer give discounts to customers when selling reimbursable prescription 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 2,950 – with a per capita consumption of just around EUR 120. This has led to tougher competition and more pressure on independent pharmacies.

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

Main events

During the reporting period, Mr Piotr Stopczyk was appointed as President of the Polish Management Board.

Mr Artur Dzagarow was appointed as Business Development Director and Ms Izabela Kubisiak was appointed as the new Logistic Director replacing Mr Dzagarow.

Outlook for 2008/09

The year 2008/09, too, is expected to be challenging for pharmaceutical market players. The new Treasury Ministry of Poland has prepared an analysis concerning privatising the two pharmaceutical wholesalers remaining in state hands (Cefarm in Białystok and Cefarm in Warsaw).

Further modifications can be expected also to the Healthcare Service Act in order to reduce government spending on refundable medicines

Market growth is anticipated to remain modest, but in the long-term Tamro believes that Poland has significant growth potential.

Key Figure