Poland's Bioton and Polpharma investigating the possibility of a merger; BMI sees pharma market attractive to MNCs

Polish pharmaceutical companies Bioton and Polpharma have announced they are investigating the possibility of a merger, with further details to be published later in 2010, reports Business Monitor International.

In addition, a side-deal has been struck through which Polpharma could buy the antibiotics branch of Bioton for between 90 million zloty ($32 million) and 110 million zloty, as well as its two Italian subsidiaries.

BMI considers Poland's pharmaceutical market reasonably attractive to multinational pharmaceutical companies. In its second quarter 2010 Business Environment Ratings, Poland is placed seventh out of the 20 Central and Eastern European (CEE) markets in its coverage universe and 31st globally. Poland is the third largest market in CEE by total size, behind only Russia and Turkey. Drug expenditure represents 2.3% of Gross Domestic Product (GDP), above average on a global and regional basis. Per-capita spending in 2009, meanwhile, put the country eighth on a regional basis. Sales in 2009 recorded a second consecutive upturn in annual growth in local currency, but zloty devaluation has yielded few opportunities for foreign drugmakers.