POLISH RETAIL SALES GROWING, DESPITE WEAK AUGUST

According to recent statistics, pharmacy sales in Poland were PLN1.36bn (US$417.97mn) in August, 4.6% lower than in July. Market watchers claim that the market, which has been growing rapidly in recent months, has become a victim of its own success, but note that pharmacy sales are 6.2% higher year-on-year.

The decline -- which saw the lowest amount of unit sales for roughly 4 years -- is expected to be short-term. Poland has one of lowest healthcare expenditures in the European Union (EU) and chronic under-funding has left many patients disenchanted with the system, and many now prefer to obtain some drugs directly from pharmacies rather than deal with doctors. Private healthcare is also soaring, with a reported 56% of Poles currently on private insurance schemes, and an estimated 10% opting out of the public sector altogether.

The strong retail sales also illustrate the impact of government austerity in drug reimbursement. Reimbursable drug sales have lagged behind the retail sector, with the state's drugs bill just 1.7% higher year-on-year at PLN454mn (US$139.63mn) in August. Meanwhile, spending grew for both non-reimbursed prescription drugs and OTCs, reaching PLN274mn (US$84.3mn) and PLN390mn (US$119.93mn) respectively.