
New replacing old. Poland is the only country in eastern Europe with a GNP higher than before the wall came down.
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General manager Bent M Johnson sees good prospects for further growth
Measured in nominal figures,
Poland is growth market Number
One in Eastern Europe. Novo
Nordisk's Health Care affiliate is
doing very nicely - in the last two
years, turnover has doubled. In
the same period, sales of insulin
in 3 ml Penfill® have risen by
nearly 500% and the market
share in Diabetes Care has
grown from around 20% to approximately
30%. Sales of Women's
Health Care and growth hormone
products in Poland are also
growing.
The explanation for this breakthrough
in Poland is three-fold:
greater awareness by patients,
doctors and the authorities of
the value of modern pharmaceuticals; stable economic policy and
growth; and the reorganisation
of the Polish affiliate to western
lines, with decentralised responsibility
of the approximately 50
staff.
"In the last few years, we have
seen a growing awareness
among doctors and patients of
the value of quality drugs and
treatment. This awareness has
paved the way for increased
public subsidies for medicinal
products. Which means more
and more patients have access to
our high quality products," says
Bent M Johnsen, general manager
for Novo Nordisk Health Care
in Poland.
Another crucial factor has been
a change in the perception of
diabetes.
"It used to be thought of as
something to keep quiet about
for fear of losing your job or
something. Nowadays it is becoming
accepted more and more
as something you can live perfectly
normally with and do just
as good a job at work. That is an
attitude that has been supported
by our training programmes for
doctors, nurses and patients - and
our modern pen systems,"
says Johnsen.
"From a clinical perspective,
the increasing use of human insulin
in combination with our
user-friendly injection systems
has also helped reduce the risk of
diabetes-related long-term complications,
which is an important
pharmacoeconomic aspect,"
says Johnsen.
Insulin only in pens
It is Novo Nordisk's objective to
supply patients with quality that
is second to none. Hence our
reason for selling insulin primarily
in pens - NovoPen® , Penfill®
and the disposable pen Novo-Let
® , which was launched in
April. It is also a goal to be selling
only human insulin by the end of
1997. As about half of all Poles
with diabetes, who require insulin
treatment still use animal insulin,
there is a potential for
further growth in sales of Novo
Nordisk products. Especially
when you take into account the
fact that very few young, newly
diagnosed people with diabetes
use animal insulin.
Novo Nordisk has an alliance
with the local insulin producer
Polfa Tarcomin, which has about
half the Polish insulin market,
selling mainly animal insulin and
human insulin in vials on licence
from Novo Nordisk. One of Novo
Nordisk's most important contributions
to the alliance has been
the transference of technology
to Polfa Tarcomin, which used to
have the monopoly of the Polish
insulin market and is now undergoing
privatisation.
The pattern of increased turnover
and awareness is repeated
in the field of HRT (hormone replacement
therapy). Greater understanding
as to what can be
done to prevent osteoporosis
and menopausal symptoms has
helped triple turnover in the last
two years, and growth has by no
means flattened out. In Poland,
only one woman in 20 over the
age of 45 uses HRT products - in
Denmark the ratio is one in
three.
The growth hormone market
is a tender market. Basically that
means the state must have certain
stocks of growth hormone.
Each producer then negotiates
individually, just like a tender bid.
With a market share of over
50%, Novo Nordisk is doing fine
in the growth hormone market.
Potential for growth
According to the IMF 'World
Economic Outlook' report, Poland
is the only country in
Eastern Europe with a GNP higher
than before the Wall came
down. Since the introduction a
few years ago of a crawling exchange
rate peg (the Zloty is not
allowed to move more than
10% vis-ą-vis USD and DM) the
government has managed to reduce
inflation year after year. So
prospects for a rise in buying
power are good.
According to the report
'Eastern Europe - opportunities
for the pharmaceutical industry'
compiled by the IMS Pharma
Strategy Group in London, sales
of pharmaceutical products in
Eastern Europe will double in the
period between now and 2000.
And Poland's market share in
Eastern Europe is predicted to
rise from 33% to 43%.
Excellent investment climate
There is to be an election in Poland
in the autumn. There is a
general consensus among Danish
diplomats in Poland that no
matter what political coalition
may be put into power, the
investment climate will not change
much. Poland's economic policy
has been stable recently,
most probably because it has been
masterminded by technocrats
and not marred by party ideology.
Anders Rosbo