Read the Conversation
EF: 2023 has been a year of transition. Do you view 2023 as a year of challenges or opportunities?
LK: 2023 has been a year with challenges and opportunities. As the administration is transitioning, we see that the plurality of voices within the government is increasing. In the past years, there has been an impressive improvement in reimbursement policies, which is important to ensure access to innovative therapies. As the administration changes, it is important to showcase the value of innovation, particularly to the Ministry of Health (MOH), which is the key administrator for the pharma business concerning drug reimbursement.
We are looking at a more cost-effective approach when it comes to the new law for reimbursements. It will have some positive impacts on pharmacies and distributors. Since November 1st, the fixed margin for the distributors increased up to 6%.
At the same time, margins for the pharmacies are also higher. Some changes in the reimbursement law still need to be further clarified. It is difficult to judge right now, and there could be some risk. Overall, I view these changes as quite neutral rather than challenging.
On the positive side, I think the pharma market will continue to grow. As the new government will be pro-European Union, I believe in the continuity of the legacy when it comes to investing in new reimbursements and novelty drugs. Being part of the EU is a positive and major factor for Poland. I think this is also an innovative approach, allowing us to adopt more novel, digital solutions within healthcare in Poland. Poland has made significant progress regarding digitalization since the pandemic, and we are leading in the digital space regarding e-prescriptions and medical tele-visits. Continuing this trajectory would be ideal, as it increases competition in our industry. I see the opportunities in the long run, and we currently have a positive outlook.
EF: Chiesi has close to 90 years of experience in the pharmaceutical industry. Could you elaborate on the footprint that you have in Poland and the importance of your operations to the group?
LK: Chiesi is structured into four main segments, the first and most important is the respiratory segment. Globally, it is more than 50 percent of our business, and in Poland, we have a better representation. We also have an interest in specialty care, such as cardiology and transplantology. The third segment is relatively new for us, yet extremely important: rare diseases. Chiesi acquired Amryt this year, which is developing and delivering innovative new treatments to help improve the lives of patients with rare and orphan diseases. Finally, we also have our segment in the consumer health market. We acquired a company focusing on products related to supplementary diets and medical devices, and I am proud to say our Polish market share is about is growing.
In Poland, Chiesi has the same focus in each of the four segments. In the respiratory market, we have a 30% market share. In addition to this, we also have special care. Finally, we have our consumer health segment, for which we acquired the small company Smart Pharma in 2020, with offerings that include probiotics, iron supplements, and medical devices. We are excited to be almost tripling our size within three years.
We are also in the rare disease space. In Poland, the reimbursement process approvals are one of the toughest within the EU, which makes it hard to have access to rare diseases.
As Poland is a competitive market with low prices and the GDP is not as strong as in other countries, it is difficult to show the value of orphan drugs. At the same time, product access can significantly be improved to match the level of other Western European countries.
EF: How do you see the healthcare market in Poland evolving?
LK: Today, less than 6% of our GDP is allocated to healthcare. Other countries such as Germany, spend significantly more than 10% of their GDP on health. Our GDP is lower than Germany's, and our population is only half of theirs. I think there is some room for improvement to have a healthier and more productive population, and this is a task for the new administration.
We need to spend more money on healthcare. We need to address the aging population and low birth rates. This is the first year we have had negative results for births and deaths. These trends are like those of other Western European countries. We need to adjust the existing system to the new challenges.
EF: Your respiratory business is your focus. How do you see this focus evolving, and what trends do you see in the portfolio?
LK: We completed our five-year strategic plan in June 2023, and have a few launches in the respiratory area. In special care, we are looking to introduce products globally and locally. I believe the consumer health segment will develop, and we will be able to increase our market share with strategic initiatives.
Next year, we will have submissions for two products on rare diseases to the MOH. This would hopefully enable us to start to build our market share in rare diseases over the upcoming years.
Within respiratory, we are still expecting the generic to be one of our main products. We are still introducing a second brand to this product, which is perceived as a generic. We are more prepared compared to other affiliates of Chiesi. We believe that we will not lose sight of our plan, and we will stay strong within the respiratory market.
We are expecting new launches to treat asthma, that will increase the patient outcome. Additionally, the government is focusing on bringing access to therapies to elderly patients, and most products from Chiesi are included. More patients are getting access to these medicines, and this is a very positive initiative for the pharma sector.
EF: How would you assess the level of awareness when it comes to prevention?
LK: We are doing a lot of work around education on Prevention working alongside patient organizations in Poland which are not as developed as in other European countries. At Chiesi Poland, we have educational programs or platforms dedicated to COPD, Asthma, Transplantology, Neonatology and Smart products. All of them are direct platforms for the patient, and the educational material is prepared by highly qualified professionals and opinion leaders.
EF: What advice would you give to other leaders who are looking to shift their focus to being patient-centric?
LK: Chiesi introduced a customer experience project two years ago. This project is about how to manage customers. There are three kinds of customers. The first is the employees. A happy employee is a happy client. The second customers we are focusing on are healthcare professionals. The third customer is the patient. "Patient first" is our motto.
Better-educated patients are more knowledgeable, and it is easier for doctors to work with educated patients. Polish doctors are overloaded and often have no time to educate the patient. We help physicians to educate by producing a platform where physicians can educate patients in both, digital and print.
EF: If you had to create a roadmap towards a sustainable healthcare model in Poland, what would your three main pillars be?
LK: Chiesi is leading in sustainable development. Sustainability is key for our operations. Part of our sustainability process and our B-Corp certification is our education efforts around prevention. Chiesi is one of the pioneering organizations in the field to get a B Corp certification 3 years ago. One of our innovative initiatives to approach sustainability is through product innovation. We are moving and starting to work on a different recipe for our inhalers to reduce our carbon footprint.
Focusing on the patient is the first pillar towards a sustainable healthcare model. This will be focused on how we can help the patient with diagnosis, education, and better access to treatment from a specialized physician.
The second pillar would be sustainability. Chiesi is conducting a market research study in Poland, where we are asking opinion leaders and administration employees for their thoughts on sustainability and why this is important. France and the Netherlands, are very optimistic about sustainability and believe that it is important. Italy and Spain believe sustainability is important, but it is not the main priority.
The third pillar would be a focus on new portfolios and market access. This is key to improving patient outcomes.
EF: Chiesi Poland is going to be celebrating 20 years soon. What are you going to celebrate as an achievement?
LK: I have been with Chiesi for over 10 years now. We will celebrate our 20th anniversary next year. We will be celebrating the impressive progress we have made in the past and our commitment to our patients. We went from a few million in turnover to a possible 230 million in 2024. This is a significant leapfrog.
We will also present a strategy for the upcoming years and how we are going to move forward. We will discuss our impact on the environment and the transformations that we have planned in Chiesi Group to ensure sustainability.
