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The pharmaceutical industry is currently facing an increase in the cost of producing drugs as well as inflation. An increase in drug prices in pharmaceutical wholesalers, and thus also in pharmacies, is inevitable. According to experts, an important issue that will affect the condition of pharmacies and pharmacists is the Reimbursement Act.
- Inflation and an increase in production costs mean that drug prices may soon go up
- The ongoing COVID-19 pandemic also has an impact on the rise in prices
- The President of the National Medicines Manufacturers (PZPPF), Krzysztof Kopeć, explains what awaits us in the near future
- You can find more such stories on the TvoiLokony home page
The domestic pharmaceutical industry is one of the strategic industries of the Polish economy, which is made up of companies dealing in the production of drugs and active substances that are components of drugs, in Poland. Manufacturers of generic and bio-substitutes are mainly concentrated in the domestic pharmaceutical industry. It plays an important role in the healthcare system by providing patients with safe, effective and affordable medicines.
The Polish pharmaceutical market continues to grow, it is the largest market in Central Europe and the sixth largest in the European Union. The benefits of a developed and sustainable industry include a contribution to economic growth, a guarantee of citizens’ health security, savings for the state budget and the development of innovative technologies. Currently, the Polish pharmaceutical market, like other industries, is struggling with the increase in production costs and exceptionally high inflation.
- Have drug prices gone up? A pharmacist compares our expenses in a pharmacy this year and last year
Both drug manufacturers and wholesalers, as a result of rising costs, are forced to deal with the risk of lowering profitability. As experts point out, this process is already visible in the price increases of products sold in the pharmacy distribution channel.
Further part below the video.
Drug prices go up. Rising production costs and inflation
According to MedTvoiLokony, the president of the National Medicines Manufacturers – PZPPF, Krzysztof Kopeć, due to rising production costs and inflation, the pharmaceutical industry already last year appealed to stop further erosion of domestic drug prices, which are the lowest in the EU.
Since the entry into force of the Reimbursement Act in 2011, the cost of producing drugs has been increasing year by year, and in 2011-2021, inflation was 14,5%. – explains Kopeć. And adds:
At that time, the Ministry of Health reduced the prices of domestic drugs by 26 percent. At the same time, in the same period by 20 percent. thermal energy costs increased by 50 percent. electricity, by 20 percent water and 150 percent. waste disposal costs. Since 2011, the average wage in the enterprise sector (GUS data) has increased by 52 percent.
- See also: From November 1, a new list of reimbursed drugs is in force. What went up, what got cheaper?
The impact of the COVID-19 pandemic on the increase in costs
The ongoing COVID-19 pandemic, which has led to a sharp acceleration in price increases, has also contributed to the increase in costs. – Prices of consumer goods and services (CPI) already in October 2021 compared to the same month last year were higher by 6,8 percent. (data from the Central Statistical Office) – explains the president of the National Medicines Manufacturers – PZPPF.
- Who is responsible for the increase in the prices of basic products? A government more than a pandemic [POLL]
As Krzysztof Kopeć points out, the current increase in the cost of purchasing production materials, incl. due to inflation, higher supplier costs, disrupted supply chains, the minimum is estimated at the level of inflation. And its current readings indicate the level of 8,6 percent. This means an increase in annual production costs compared to 2021. To this should be added the planned increase in the prices of energy utilities and growing wages (a derivative of the increase in the average wage and the minimum wage in Poland).
– Meanwhile, the development of the industry requires constant investments, especially since we operate in an extremely competitive market. We do everything to guarantee drug safety for Polish patients and we feel co-responsible for it, says Kopeć. – But especially in this difficult time, close cooperation with the government in this regard is necessary. Considering that we have official fixed prices for reimbursed drugs, a systemic solution taking into account inflation would be a support. It is important that it does not cause an increase in patients’ surcharges for drugs.
Amendment to the Reimbursement Act to be amended
The amendment to the Reimbursement Act is extremely important for drug manufacturers. Design currently under consultation, in the opinion of the Polish Association of Pharmaceutical Industry Employers contains provisions unfavorable for the development of drug production in Poland, we are talking here, inter alia, about the proposed price corridors, as well as payback.
As experts note, the proposed price corridors could eliminate several hundred domestic drugs from reimbursement, while payback would deprive the company of revenues for saving patients from drug shortages. However, nothing is yet decided here, as the PZPPF points out, the Ministry of Health took into account the arguments of patients, drug manufacturers and other stakeholders, and will still analyze the effects of the proposed changes.
- Also read: Poland may soon run out of drugs. Producers are alarming
Drug safety is important
The pandemic, global production interruptions and problems with international transport have reminded everyone how important it is to have a pharmaceutical industry in Europe, notes Krzysztof Kopeć, president of PZPPF. It is important that drug safety is included in the legislative drafts. Not only politicians but also patients appealed for its increase.
The biggest challenge is the introduction of the Drug Safety Partner institution ensuring the increase in drug production in Poland. – We hope that everyone will learn from the pandemic and we will consistently increase our drug sovereignty. Pharmaceutical production in our country will never be competitive in terms of price compared to imports from Asia, but today we know that it pays off anyway, because it guarantees the continuity of drug supplies in crisis situations – PZPPF writes on its website. – A drug safety partner could keep the prices of drugs at the current level and would not be forced to equate them with the prices of Asian competitors.
- See also: “We pay horror receipts in pharmacies every month” [LETTER TO THE EDITOR]
Domestic drug manufacturers have constantly invested in development
Summing up the last year, the president of PZPPF, Krzysztof Kopeć, points out that despite the difficulties, domestic drug manufacturers continued to invest in development. The domestic pharmaceutical industry has conducted research to improve available drugs that have proven efficacy and safety.
These innovations – although seemingly not breakthrough – change the lives of patients and improve the effectiveness of therapy. Thanks to the research conducted by domestic producers – tablets that once had to be taken every day can now be taken once a week. It was also possible to combine several drugs in one tablet, which allows you to take less of them at once. There are already pharmaceuticals administered through the skin in the form of convenient patches or dissolving in the mouth. In Poland, work is also carried out on new biological equivalent drugs that increase the availability of these therapies. Domestic producers appealed that due to the falling prices of biological drugs, they should be available not only in hospitals as part of drug programs, but also in prescription pharmacies.
Cooperation with the Medical Research Agency
Domestic companies have started cooperation with the Medical Research Agency as part of the National Development Plan for the Biomedical Sector in Poland. They will also develop innovative therapeutic solutions using RNA technology, thanks to the support of the Agency. – We are also conducting a constructive dialogue with Deputy Minister Maciej Miłkowski, who sees the innovation and development potential of our industry – summarizes the president of PZPPF, Krzysztof Kopeć.
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