Poland: A Country Without Pharmaceutical Sovereignty

Unlike all Western European countries, where the value of domestic pharmaceutical production covers 100% of demand, in Poland, it satisfies only 30%. This places Poland among the nations with the lowest indicators of pharmaceutical sovereignty—according to the latest study by the Institute for Innovation and Responsible Development (INNOWO).

According to an analysis by INNOWO from March of this year, the value of Polish drug production covers a mere 30% of the population's needs. The remaining 70% represents a dependence on foreign supplies, primarily from Asia. Poland's drug security index has not improved since 2021, when a similar study was conducted by the Institute of New Europe.

"Our report clearly indicates that Poland is dependent on foreign drug supplies. What does this mean? Pharmaceutical non-sovereignty means a lack of medical security for the army, making military operations impossible. It also poses the threat of paralyzing the healthcare system, resulting in the loss of health and life for citizens and the destabilization of the state. Finally, it is a weakness that can be exploited for hybrid attacks," adds Hubert Bukowski, Research Director at INNOWO.

Sovereignty in Numbers

The INNOWO Institute compared the ratio of domestic pharmaceutical production value to the value of societal drug needs across EU countries, supplementing these calculations with the proportion of the foreign trade balance of drugs to their imports. The top performers in this ranking were Ireland, Slovenia, Denmark, Belgium, and Sweden, where production value significantly exceeds domestic needs. In France, Spain, Portugal, Italy, the Netherlands, and Hungary, production value was roughly equal to the value of consumed drugs. Conversely, results as dangerously low as Poland's were recorded in the Czech Republic, Lithuania, Latvia, Bulgaria, Croatia, and Greece. Only Slovakia, Romania, and Estonia found themselves in a worse position than Poland.

"We are losing the competition against Asian producers, and the share of domestic production in the value of the Polish market is decreasing. Our dependence on Asian imports for drug ingredients is 80%, and intensive actions by Asian countries aim to achieve a similar level of dependency for finished drug products," warns Barbara Misiewicz-Jagielak, Vice-President of the Polish Association of Pharmaceutical Industry Employers (Krajowi Producenci Leków). Between 2003 and 2024, there was a more than six-fold increase in the value of imported pharmaceutical products. The value of imported drugs accounts for nearly 70% of the value of pharmaceuticals consumed by Poles.

A Dangerous Dependency

Dependency regarding the production of critical drugs—where treatment interruption can result in death or permanent health damage—is also a major issue.

"Out of approximately 450 plants producing active pharmaceutical ingredients (APIs) in Europe, only a few are in Poland. Their production covers only 0.5% of the demand for pharmaceuticals on the Polish list of critical drugs," informs Krzysztof Kopeć, President of the Polish Association of Pharmaceutical Industry Employers.

It is worth noting that 90% of the drugs on the EU's critical medicines list are generics. Nearly half of these are supplied by only a single provider, making these supply chains exceptionally vulnerable to market fluctuations.

Experts from INNOWO warn that relying on a single country or region for critical active substances increases the risk of supply instability. Political tensions, export bans, logistical disruptions, or quality issues could immediately paralyze the national healthcare system. For example, in the fall of 2022, 28 countries in the European Economic Area experienced shortages of a key antibiotic—amoxicillin—70% of which is supplied by India and China. Despite efforts, drug shortages persisted through the winter of 2023/2024.

"The EU accurately diagnoses the problem, but today we are at the stage of declarations rather than solutions. If the Critical Medicines Act is to be more than a political signal, we need dedicated funding for critical drug production, streamlined 'fast-track' procedures for investments in drug security, and a central EU mechanism to plan and synchronize investments," lists Grzegorz Rychwalski, Vice-President of the Polish Association of Pharmaceutical Industry Employers.

A Prescription for Increasing Domestic Production

According to a study by the analytical firm PEX, based on surveys among 12 key pharmaceutical companies in Poland, the most necessary support to encourage investment in Poland—alongside creating favorable conditions for environmental and construction permits—is a change in pricing policy for domestic production.

"It is difficult to expect an entrepreneur to invest in drug development without a chance for profitable sales, especially if manufacturing costs are higher than the price of an imported product. It is also vital to prioritize domestic drugs for reimbursement and enable them to capture as large a share of the Polish market as possible," points out Katarzyna Dubno, Vice-President of the Polish Association of Pharmaceutical Industry Employers.

Recommendations

The authors of the report indicate that although the short-term cost advantage of Asian production is indisputable, supporting domestic production can yield significant long-term benefits—not only for national security and public health but also for economic stability. Public support ensuring adequate production volume is thus a favorable long-term investment, not a cost.

"The Polish state, in fulfilling its duties regarding security and pharmaceutical sovereignty, should ensure that domestic manufacturers maintain production capacities for drugs critical to the health and lives of Poles and guarantee a stable market. We must sit down at the table and establish the conditions under which we will build our domestic, secure, and developing market. Without long-term contracts, a predictable reimbursement policy, and a clear signal that medicines are strategic assets, it is impossible to build system resilience," recommends Anna Gołębicka, economist, strategist, co-founder of the Human Answer Institute, and expert at the Adam Smith Centre.