Poland's pharma distribution seeing many changes, with significant consolidation among wholesalers

In recent years, the pharmaceutical distribution market in Poland has seen many changes. The wholesale distribution segment has experienced consolidation, including combinations between leading players, as well as the privatization of State Treasury outlets. New forms of distribution have also been developed, such as direct/DTP distribution.

According to the latest report by the local research and consulting company PMR, titled 'Distribution on the pharmaceutical market in Poland 2010: Development forecasts for 2010-2012,' during the 2008-2009 period, the pharmaceutical distribution sector in Poland saw further consolidation, both among distributors and among retailers. The most important event in the wholesale distribution segment was the buyout of Prosper by Torfarm, another leading distributor on the Polish market, in April 2009. After the fusion, the two companies together control more than 30% of the market of distribution to pharmacies in Poland.

The takeover of Prosper by Torfarm was one example of a new trend that is becoming visible on the wholesale market in Poland - consolidation among the largest players. Prior to this, the takeover targets tended to be smaller, regional entities. In February 2008, for instance, PGF acquired 57.3% of the shares in the Aptekarz wholesaler, based in Rzeszow, for 26 million zlotys ($8.7 million). In July 2008, Torfarm bought a 100% stake in the distributor Promedic for 700,000 zlotys.