Our investment will ensure drug safety for many Poles

Polfa Tarchomin is celebrating its 200th anniversary this year. It is the oldest Polish pharmaceutical plant and one of the oldest in Europe. What investments are you looking to make now?

JAROSŁAW KRÓL: We were the first producer of insulin and penicillin in Poland. Our team feels a responsibility towards such a great tradition and knowledge. We are now implementing a long-term investment programme. The Centre for the Development and Production of Oncology Drugs is the most important part of it. Currently, all oncology drugs available in Poland are of foreign manufacture. We want to change that, but we also think globally. The entire investment amounts to PLN 600 million. It will cover the research and development area, the building itself, machinery, and laboratory equipment. We intend to obtain an occupancy permit in Q1 2024.

On the other hand, we completed a state-of-the-art ampoule plant for the production of sterile drugs for PLN 40 million. We also recently took over a building with a finished production line from the bankrupt Ifotam company in Łódź. We have spent PLN 35 million, with a book value of PLN 100 million and a replacement value of PLN 150–200 million.

Since the production of oncology drugs will now be domestic, will the prices be lower?

JK: Yes, because these drugs are intended for tenders. If we want to take 50% of the market in individual molecules, we will compete aggressively on the price. The quality of the drugs is the same, so we have to lower the price. This will be done for the benefit of the Polish budget. The building scale allows us to offer these products abroad as well.

There were drug shortages during the coronavirus pandemic. How do you approach the drug safety?

JK: We played a huge role in the pandemic. We were among the first to supply disinfectant fluids, which were dramatically in short supply. We then became their largest producer in the country. In total, we produced as much as 23 million litres. Hospitals, clinics, schools, offices, and uniformed services were supplied by us. This enabled the state to function without interruptions. For a very long time, the drug at that time was oxygen. In Poland, the medical oxygen market is dominated by four multinational corporations. At one point, they said they couldn’t produce any more. We had never done this before, but we were able to get it into production in no time with the help of co-operators. We supplied 1.3 million litres of medical oxygen. Without it, many people would have died.

In turn, the coronavirus was followed by influenza epidemic and bacterial infections. Suddenly there was a shortage of antibiotics. Many global manufacturers have chosen to supply medicines first to where they are most expensive — Western Europe. Thanks to the Polish production, we had them at a good price because we had our own plant that had them in stock. We were prepared for an emergency. We increased production and worked three shifts. We are therefore making a major contribution to the area of Poland’s drug safety and we are proud of it.

There was also a shortage of flu vaccines.

JK: Yes. We acted as a purchasing centre for the Ministry of Health. We had to send funds in the dark because nobody wanted to sell without advances. However, it was possible to get flu vaccines. Every now and then we are summoned and we come through.

Polfa Tarchomin also sources from other countries. Have disrupted supply chains from Asia changed company policy?

JK: We were already on alert beforehand. Since 2018, we have been gathering stocks of medicinal substances because we saw the supply risks. We also looked for suppliers from other parts of the world to have a minimum of two, including one not from the Far East. If you have medicines when others don’t, you win the market share.

Coming back to the Centre for the Development and Production of Oncology Drugs – this is the most important and expensive investment.

MALGORZATA STOKROCKA: There are not many places like this in Europe. With this investment, we will be able to ensure drug safety in the areas of oncology drugs, immunosuppressants, and those used to treat systemic mycoses. These will be life-saving medicines for hospitals.

Will this be the first production of oncology drugs in Poland?

MS: If we are talking about ampoules and vials as forms of administration, then yes.

What are these forms of administration about? I understand that this has direct implications for patients.

KAMIL GARBERA: Our investment is a building with two separate production areas for sterile moulds. The first line will be able to produce ampoules and vials with both lyophilisates and solutions. The second line will be for vials of different pharmaceutical forms only. Both lines are in the latest insulator technology. It will be possible to work with highly active substances.

This investment is important not only from the perspective of Poland, but also of our European region?

MS: Yes, because with various crises, we have seen that supply chains from outside the European Union are not always maintained. Hence, locating the manufacturing site for such key life-saving drugs in Poland is invaluable.

Have you felt the instability associated with disrupted supply chains during the pandemic?

MS: Everyone has felt it. When the pandemic started, antibiotics were also imported from India and China. Borders were often closed and transports stopped. We were prepared with supplies, but they could last only for a while. In the long term, we should have the production of all key drugs in Poland and the EU.

Polfa is also setting up a branch in Łódź. What kind of investment is this?

KG: This is the purchase of a bankrupt company that manufactured therapeutic substances from the cytostatic group. They were preparing to launch the sterile dispensing area. These opportunities fit into our portfolio, vision, and strategic plans. We want to open a sterile dispensing and synthesis area in Łódź as soon as possible.

And what’s the deal with the ampoule plant mentioned at the beginning?

MS: We have observed shortages of many medicines in the hospital market. That is why, we decided to invest in this technological area a few years ago. We have produced a registration series for our injectable drugs, for example those used to treat central nervous system disorders. We hope to have the first products on the market next year.

After 200 years of existence, how do you see the future of the company?

KG: Optimistically. Polfa Tarchomin is constantly growing. The company has been profitable every year, has invested heavily in growth, and its profitability has consistently increased. We will continue to invest. These are long-term processes. For example, we started the ampoule plant in 2019 and we are only just now in the final stage of the investment. We also have other ambitious plans and we will pursue them.

Do you want to gain more market share?

MS: Our main focus at the moment is on entering new markets. We have been able to register products in Scandinavia, among other countries. We need to invest in more efficient equipment to produce medicines not only for Poland. And that is what we are doing. We are steadily increasing exports. We are already present in 42 markets worldwide.

— recorded by Grzegorz Balawender