Q2 proves better for local drug firms but this year will still be worse than last

After poor results at the beginning of the year, pharmaceutical sector sales figures increased in Q2. The upswing comes largely as a result of the current period of economic growth, as in this country it is patients rather than the budget that pay for medicines. Although this year's end figures will still be worse than those recorded last year, the forecasts for 2005 are seen as being optimistic. Furthermore, the major players in the domestic pharmaceutical sector expect to see a 10% increase in sales for 2004. Most domestic generic pharmaceutical firms are tipped to benefit from the country's accession to the EU, although they now have to comply with strict EU regulations. Despite the more rigorous rules, generic firms have many new drugs to sell and significant production potential. Indeed, there is every possibility that these firms will become key distributors of 'cheap' drugs to EU countries, as they are able to offer their wares at much lower prices, which allows EU pharmaceutical companies outside Poland to sell these drugs on and reap higher margins. (Puls Biznesu, pp. 1, 12) J.J.