Let’s rebuild drug security for Polish women

The reimbursement bill’s proposed equalisation of the prices of competing drugs with the cheapest products is a scandalous mistake in terms of drug security. This is a space for dumping activities and eliminating domestic manufacturers from the market, according to dr Katarzyna Obłąkowska of the Institute of New Europe and dr Artur Bartoszewicz of the Warsaw School of Economics, authors of the report, “Pharmaceutical Race of Nations.”

Publikacja: 08.09.2022 03:00

Let’s rebuild drug security for Polish women

Foto: materiały prasowe

The reimbursement bill proposes provisions to reduce the NHF’s spending on drugs at the expense of patients and domestic drug manufacturers. Are such solutions beneficial to Poles?

- Dr Artur Bartoszewicz: The search for solutions to reduce the expenses of the National Health Fund is legitimate; however, it should not be at the expense of patients and domestic drug manufacturers. The system must protect patients, especially at a time of rising inflation, deteriorating economic conditions, and pauperisation. The draft amendment proposes that within a group of drugs with similar effects and composition, the price of the most expensive one can be only 50% higher than the cheapest one. More expensive drugs will be removed from reimbursement. This is a space for dumping activities and eliminating domestic producers from the market. The domestic market in the medium term will be completely taken over by multinational corporations and Asian suppliers. This is a reprehensible mistake in terms of drug security. Such solutions are against the development of domestic producers, limiting their financial potential, which is necessary for development, dr Artur Bartoszewicz stated.

- Dr Katarzyna Obłąkowska: Especially that the drug sovereignty index, comparing the value of pharmaceutical production by domestic manufacturers with the value of drugs consumed by the nation, places Poland among the countries with the lowest level of drug security, next to the Romanians and Bulgarians. Poland’s index is 0.32–0.35; Switzerland’s is 9.87; Slovenia’s is 2.46; and Germany’s is 0.82. In view of the drug security, Poles have been colonised for over the past 30 years, dr Katarzyna Obłąkowska added.

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Thriving global pharmaceutical corporations are able to supply almost the entire world with needed innovative drugs. Does Poland need its own pharmaceutical industry?

K.O.: Yes. The Polish pharmaceutical market is worth approx. PLN 38.3 billion, while the value of domestic production is only about PLN 11.5 billion. Poland is very attractive to pharmaceutical companies. Unfortunately, we have already ceded a large space of our market to other countries as the value of domestic drug production is only 32% of the domestic pharmaceutical market.

A.B.: Meanwhile, this industry is one of the most important branches of the world economy. Not only has it a huge economic value, but above all, by producing medicines, it guarantees the security of people and nations.

Is the pharmaceutical industry in Poland innovative?

A.B.: It is among the four dynamic productivity champions, but the other three do not generate such significant positive effects for society as health and life. It is more innovative than the manufacture of computers, electronic, and optical products; and, basically, at the same level as software and IT consulting services.

K.O.: This sector has innovation built into its DNA, despite the lack of the state support at the level that other countries may enjoy. One French pharmaceutical company spends about PLN 28 billion annually on R&D, while all innovation expenditures in Poland across all sectors of the economy are about PLN 32 billion. Therefore, R&D activities of domestic pharmaceutical companies must receive strong support from the Polish state.

How to build a strong pharmaceutical sector?

A.B.: The Polish pharmaceutical industry should be considered a laggard due to 30 years of government neglect in creating the institutional environment and support appropriate for pro-development countries.

K.O.: The most pro-development and forward-thinking countries have long relied on the development of domestic producers, and today they are reaping the benefits from their actions taken and carried out for decades. Examples include China, Switzerland, France, and Germany. These countries, due to the oligopolistic structure of the global drug market, are supporting the development of their chaebols.

In the report, “Pharmaceutical Race of the Nations,” you point out that prolonged drug shortages can cause greater losses among the population than many an armed conflict. What can be done to make Poles feel safe?

A.B.: The Polish government has a moral obligation to ensure general access to effective medicines, which it can do in two ways. The first is to support domestic pharmaceutical manufacturers. The second – to increase drug imports from the cheapest destinations, namely Asia. But this will lead to the total destruction of production in Poland and negate the drug security of Poles. We are currently on way two. Today, we need a big push from the state for the domestic pharmaceutical manufacturing sector to pick up the gauntlet to fight for the market.

K.O.: And the Covid-19 pandemic, as well as the outbreak of war at the EU’s external border, proved that drug security is as important as digital or military security.

Partner’s material: Związek Pracodawców Przemysłu Farmaceutycznego – Krajowi Producenci Leków [Association of Employers of the Pharmaceutical Industry – National Drug Manufacturers]

Foto: rp.pl

The reimbursement bill proposes provisions to reduce the NHF’s spending on drugs at the expense of patients and domestic drug manufacturers. Are such solutions beneficial to Poles?

- Dr Artur Bartoszewicz: The search for solutions to reduce the expenses of the National Health Fund is legitimate; however, it should not be at the expense of patients and domestic drug manufacturers. The system must protect patients, especially at a time of rising inflation, deteriorating economic conditions, and pauperisation. The draft amendment proposes that within a group of drugs with similar effects and composition, the price of the most expensive one can be only 50% higher than the cheapest one. More expensive drugs will be removed from reimbursement. This is a space for dumping activities and eliminating domestic producers from the market. The domestic market in the medium term will be completely taken over by multinational corporations and Asian suppliers. This is a reprehensible mistake in terms of drug security. Such solutions are against the development of domestic producers, limiting their financial potential, which is necessary for development, dr Artur Bartoszewicz stated.

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