Polish pharmaceuticals prove a big hit in Russia

Polish pharmaceutical exports jumped by 29% last year to $677 million, and Russia now accounts for 20% of exports. Poland's biggest maker of OTC drugs, Polpharma, acquired a strategic stake in Akrihin, a Russian drugs company, and is expanding its sales of cough, cold, analgesic and stomach drugs. A more popular strategy is the one pursued by Jelfa, which operates through a representative office in Moscow and is also steadily increasing its Russian sales. But, say analysts, now could be an ideal opportunity for Polish firms to engage in M&A activity in Russia. Its pharmaceutical industry is still very fragmented and there are just two foreign players present, Krka and Gedeon Richter. However, foreign giants are also eyeing Russia more and more closely. Servier has recently announced it will build a plant there, so within a few years the market could become a lot tighter for foreign investors. (Rzeczpospolita, p. B1) R.M.