POLISH PHARMACEUTICALS: U.S. COMPANIES UPBEAT

C O N F I D E N T I A L SECTION 01 OF 02 WARSAW 000099 SIPDIS SIPDIS STATE FOR EUR/NCE:BPUTNEY STATE PASS TO USTR FOR WMOORE COMMERCE FOR 4232/ITA/MAC/OECA/MROGERS, JBURGESS, JKIMBALL E.O. 12958: DECL: 01/22/2018 TAGS: ECON KIPR TBIO ETRD PL SUBJECT: POLISH PHARMACEUTICALS: U.S. COMPANIES UPBEAT REF: 07 WARSAW 2212 WARSAW 00000099 001.2 OF 002 Classified By: Economic Counselor Richard Rorvig for reasons 1.4(b,d) ¶1. (C) Summary: The November 2, 2007 update to Poland's reimbursement list represents a dramatic breakthrough on market access to Poland for the U.S. research pharmaceuticals industry. At least six major pharmaceutical companies saw key products added to the list, a change which will mean substantial gains in revenue in 2008 and beyond. In the near term, the industry's top priorities are maintaining under the new PO-led government a regular dialogue with the Ministry of Health, as begun under the previous PiS-led government, and ensuring that the Polish government implements legislation passed last year promising quarterly updates to the reimbursement list, firm decision deadlines and greater transparency. The innovative companies are also planning a longer-term campaign aimed at increasing understanding of the benefits of innovative medicines. End summary. -------------- Revenues for U.S. Companies To Rise Thanks to Reimbursement List Update -------------- ¶2. (C) Reftel reported that, in 2007, 33 new active substances were added to the Polish government's list of drugs eligible for reimbursement from the National Health Service. On January 21, the local general managers (GMs) of three major U.S. pharmaceuticals companies told EconOffs that when the list was updated on November 2 their highest priority drugs had been added. Consequently, they expect a dramatic increase in their revenues in 2008, and an even larger one in 2009, as Polish doctors become accustomed to prescribing the new drugs. The three GMs' estimated that the U.S. industry revenues will likely increase by at least US$120 million as a result of the new additions to the list. One GM said the additions came in the nick of time since his company would have pulled the plug on further operations in Poland without greater market access. ¶3. (C) While great news for the industry overall, not all companies are equally pleased. For example, none of Eli Lilly's products were added, a blow to the company. Eli Lilly officials observed that the Ministry has offered no explanation of why some drugs were added to the list, while others -- such as Eli Lilly's products -- were passed over. -------------- Public Campaign Plan: "Let's Vote For Health" -------------- ¶4. (SBU) EconOffs spoke with industry officials on the margins of a January 21 meeting of GMs of U.S. pharmaceutical companies in Poland, reinforced with representatives from their Brussels offices, as well as officials from the UK and French embassies. Several participants were delighted by the recent change and hoped that further improvements would occur. Meeting participants discussed plans for an industry campaign with the goal of increasing understanding among opinion leaders of the benefits of innovative medicines. The companies have created a high level working group on pharmaceutical innovation, are organizing a public survey regarding views on access to innovation, and have prepared a synthesis of prior studies regarding Polish access to innovative pharmaceuticals. Over time, the campaign could reduce the hostility toward foreign pharmaceuticals companies that in the past afforded the Polish government political cover in pursuing a strategy of favoring Polish generics producers. The campaign's working title is "Let's Vote For Health." -------------- -- Top Concerns: Dialogue and Implementing New Law On Reimbursement List -------------- -- ¶5. (C) The top near-term priorities of the innovative pharmaceuticals companies are: maintaining the regular dialogue previously established (after USG arm-twisting) between the Health Ministry and the companies; and (ii) implementing new legislation that promised firmer deadlines and a more transparent process for adding drugs to the reimbursement list. The French and British diplomats noted they have had difficulties getting meetings at the Ministry. WARSAW 00000099 002.2 OF 002 The new Minister has her hands full at the moment with demands from doctors and nurses for increased pay. Post will press the new government to continue the progress made by their predecessors in this chronically neuralgic sector. ASHE