Bad Q1 for drug producers, but distributors fared better

Pharmaceutical companies, both producers and distributors, had no reasons to be proud of their first quarter results. Despite that, sector analysts remain cautiously optimistic when asked about prospects for the sector. The situation is tough for drug producers, which were unable to increase their sales despite the longer than anticipated winter. Jelenia-Góra based Jelfa recorded revenues 10% lower in comparison to Q1 last year, while Polfa Kutno had 20% lower sales. Jelfa posted a Q1 net profit of zł. 4.1 million, 50% below the Q1 2002 figure, while Polfa Kutno merely posted a net profit of zł. 600,000. According to BDM analyst Jakub Sierka, Jelfa's results were mostly affected by its expensive marketing campaign, which did not bring higher sales. However, all drugs distributors recorded increasing sales during the quarter, with the strongest 16% growth recorded by the second largest market player, Farmacol. (Gazeta Wyborcza, May 24-25, p. 26) M.M.