How Polpharma plans to build a CEE pharmaceutical platform

Jerzy Starak's pharmaceutical empire is expanding across Europe. The acquisition of one of Romania's leading drug manufacturers aligns with the new strategy of Poland's market leader. The largest deal in Polpharma's history is intended to mark the beginning of an accelerated regional expansion.

Poland's largest pharmaceutical group is about to become even bigger – primarily outside its home market. Controlled by Jerzy Starak, one of Poland's wealthiest entrepreneurs, Polpharma completed a landmark acquisition in 2012, paying PLN 957 million (approximately EUR 223 million) for an 85% stake in Polfa Warszawa. More than a decade later, the company has finalized an even larger transaction. Contrary to media reports – which the company later corrected – the deal was not completed in June.

For approximately PLN 1.1 billion (around EUR 256 million) – roughly equivalent to its annual net profit – Polpharma acquired Romanian pharmaceutical company Biofarm in July, one of the country's leading manufacturers and suppliers of medicines. The company is also expected to delist Biofarm from the Bucharest Stock Exchange. Its shareholders, primarily two investment funds, are likely to be pleased with the outcome. The acquisition price of RON 1.38 per share was almost twice the stock's peak market price from several years ago.

"Exports account for approximately 2–3% of Biofarm's revenue. From day one, this transaction gives us a strong position in a market with significant growth potential, as well as unique know-how. Building that from scratch would likely have been even more expensive, as it would have required years of learning through trial and error," says Tamás Uri, General Manager for the Central and Eastern Europe (CEE) region at Polpharma.

Biofarm is a perfect fit for Polpharma

Biofarm’s history spans more than 100 years, making it more than a decade older than Polpharma itself. In the first quarter, the company delivered results broadly comparable with those achieved a year earlier. However, the previous full year was exceptionally strong.

Between 2022 and 2025, Biofarm’s revenue increased from RON 277 million to RON 319 million, equivalent to more than PLN 260 million (approximately EUR 60 million) at the current exchange rate. Over the same period, net profit rose from RON 71 million to RON 101 million.

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“At Biofarm, we see a strategy and values that are closely aligned with our own. We expect not only to maintain its current growth trajectory but also to accelerate it,” says Tamás Uri.

Several factors convinced the group to pursue the largest transaction in Polpharma’s 91-year history: Biofarm’s market position, product portfolio, brand strength, employees’ expertise, and manufacturing infrastructure. Biofarm is among the ten largest companies in Romania’s pharmaceutical market, the second-largest market in Central and Eastern Europe after Poland. The company offers more than 100 medicines across dozens of therapeutic areas.

“Some 95% of its business consists of OTC medicines – those available without a prescription – and dietary supplements. This is an excellent fit with our business model. Prescription medicines account for more than 40% of our portfolio. In addition, Biofarm’s brands hold leading positions in the local market and enjoy very strong recognition,” says Tamás Uri.

Expert's perspective

Biofarm acquisition is about more than buying a factory

There is something symbolic about the fact that, within a single year, Polish companies acquired two icons of the Bucharest Stock Exchange. Maspex bought Purcari, while Polpharma acquired Biofarm. The direction of expansion has reversed. Today, it is Polish capital that is consolidating Central and Eastern Europe.

In the case of the latter transaction, it is worth looking at the scale of the market at stake. The Eastern European pharmaceutical market, covering 19 countries, including the Balkans and Ukraine but excluding Belarus and Russia, is worth approximately USD 42 billion (around EUR 36 billion). It accounts for just 2.3% of the global pharmaceutical market, despite representing nearly 2% of the world’s population. Germany alone has a larger pharmaceutical market than the entire region.

Yet this very gap is where the opportunity lies. Over the past two years, the pharmaceutical market in CEE has grown by 14%, compared with 9% in Western Europe. Romania is the clearest example: the region’s second-largest market after Poland, it is expanding at an annual rate of 13–14%.

Polpharma is therefore not simply buying two factories. It is acquiring a strong position in one of the region’s most important countries, brands that have been familiar to Romanian patients for decades, local manufacturing capacity, and export channels reaching into Southeastern Europe.

The Romanian market remains fragmented. The scale built by Polish pharmaceutical groups through consolidation enables them to invest in growth rather than merely defend their existing positions. The real test in the coming years, however, will be something more.
Companies must prove that they can not only acquire foreign assets but also integrate and develop them effectively. In regional pharmaceuticals, the winners will be those capable of being both large and local at the same time.

Aniela Hejnowska

Member of the supervisory boards of Diagnostyka, Murapol and Benefit Systems, and former General Manager of IQVIA Poland

Integration will take several years

Polpharma is not abandoning the acquired brands valued by customers. Instead, it intends to support their further development. One example is Linomag, owned by Ziołolek, which the group acquired in 2024. The same approach will apply to Biofarm’s portfolio.

“As for the potential to use its products in Poland and other markets, as well as Polpharma’s medicines in Romania, we will analyze these opportunities in the coming months. The same applies to the condition of the acquired infrastructure and potential additional investment in it. The key priority is to maintain operational continuity and ensure that medicines continue reaching patients,” says Tamás Uri.

He would like to see the effects of synergies “yesterday.” In reality, integrating systems, regulations, reporting structures, and other processes takes one year, and sometimes even up to two years. A longer and considerably greater challenge is integrating teams due to cultural differences.

“Based on my experience, I know that this is a process that can sometimes take several years. The exchange of knowledge and finding the right balance must take time. We benefit from the fact that the companies joining our group have always been close to us in terms of their approach to running a business. Biofarm is certainly one of those companies,” the manager explains.

Hungarian executive takes charge of region at Polish group

Polpharma has been undergoing significant changes recently. Since the beginning of the year, the entire group has been led by Sebastian Szymanek, previously the CEO of the group’s main operating company. In May, Tamás Uri took over as head of the CEE region.

A Hungarian national, Uri has longstanding ties to Poland, having graduated from the University of Economics in Katowice in 1999. He has spent most of his career in the pharmaceutical industry. Before joining Polpharma, he spent nearly 10 years at Egis Pharmaceuticals, first as head of CEE and later as commercial director.

“Each of my previous organizations emphasized the importance of moving quickly. Nevertheless, after joining Polpharma, I was surprised by the company’s pace and dynamism. Decision-making is significantly faster, and I know this played an important role in preparing the Biofarm acquisition. The ownership structure is also crucial—the presence of a private owner willing to make bold decisions ultimately translates into greater effectiveness across the entire company,” says Tamás Uri.

Experience from turbulent markets

The executive says he is well prepared for his role as head of Polpharma’s CEE region. This is primarily due to two elements of his experience gained across 18 countries.

“First, I have always operated in uncertain and turbulent markets. Several years ago, the Hungarian government introduced an additional tax on domestic pharmaceutical manufacturers overnight, making it more difficult for them to grow. I encountered similar situations in other countries as well. Such experiences teach you to act quickly and adapt even to the most unpredictable changes,” explains Tamás Uri.

Second, he understands the importance of sharing best practices between teams operating in different countries and knows how to organize this process effectively.

“Applying a successful solution from one country to another market can quickly generate benefits many times greater than the original impact. I highly value direct cooperation, which is why, from my first days at Polpharma, I have regularly visited individual countries. I want to unlock potential that has not been fully utilized so far. I do not mean optimization understood as cost-cutting, but rather jointly developing even higher revenues in individual markets,” says Tamás Uri.

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New strategy and stronger expansion in CEE

The creation of the CEE regional leadership role is linked to the group’s transformation and the implementation of its new strategy. Between 2022 and 2025, Polpharma increased its revenue from PLN 4.3 billion (approximately EUR 1.0 billion) to PLN 5.3 billion (approximately EUR 1.2 billion), while operating profit rose from nearly PLN 1 billion (approximately EUR 233 million) to PLN 1.4 billion (approximately EUR 326 million). The Polish market continues to account for the vast majority of the group’s business. Although it still offers room for growth, achieving greater ambitions requires finding new sources of financing.

“We have enormous opportunities for expansion in Central and Eastern Europe. For now, the region – excluding Poland – accounts for less than 10% of the group’s revenue, and after including Biofarm, slightly more than 10%. My ambition is to at least double this share within five years. At the same time, we are talking about significantly higher total group revenue than today, as we assume continued growth both in Poland and outside the region. This is not wishful thinking, but a conclusion based on hard data,” says Tamás Uri.

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He points out that Czechia, Slovakia, Hungary, and Romania alone have a combined population of approximately 45 million people, while economically comparable Poland has around 38 million inhabitants. The group also has access to a dozen or so other markets in the region, with tens of millions of additional potential customers.

“Our group’s CEO often says that simply maintaining the current pace actually means stagnation, or even moving backwards. In our new strategy, we have set the goal of becoming a truly multi-regional pharmaceutical platform within five years, and ultimately a market leader in Central and Eastern Europe. This is why we are placing greater emphasis on international expansion,” says Polpharma’s CEE regional head.

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Challenges and opportunities in Central and Eastern Europe

The group is aware of the scale of the challenge. It recognizes the pressure on margins, as profitability across the entire industry is now noticeably lower than it was a decade ago. At the same time, production costs continue to rise, while strict regulations limit companies’ ability to set prices in individual markets. The situation is therefore different from that of a typical consumer goods market.

“Legislation and regulations also vary significantly from country to country. Solutions introduced in one market often appear in another only after some time. Thanks to the experience we have gained across different countries, we can prepare earlier for upcoming changes. This benefits not only the business but also patients, as it helps maintain continuous access to a broad range of medicines,” explains Tamás Uri.

At the same time, expansion in the region is supported by significantly stronger patient loyalty to brands than, for example, in Western Europe.

“Patients are willing to pay slightly more for a product they trust and are familiar with. This is an opportunity for us. We have extensive experience and a strong position in developing our own flagship brands,” says Tamás Uri.

Expert's perspective

Polpharma’s move reflects broader market trends

The broader healthcare sector remains highly attractive for M&A activity [mergers and acquisitions – ed.] despite continued geopolitical uncertainty. The pharmaceutical subsector accounts for a significant share of this activity. To a large extent, this is driven by macroeconomic factors: population ageing, the expansion of the middle class, and ongoing innovation.

Market activity is being driven primarily by strategic investors. When making decisions, they can take a long-term perspective and are therefore more willing to accept certain short-term risks. Private equity funds, due to their shorter investment horizons, are more sensitive to economic fluctuations in the short and medium term. Nevertheless, they remain active as well. They have substantial cash reserves that should be allocated to new transactions in the near future.

Polpharma’s investment in Romanian company Biofarm confirms this trend. From the perspective of the Polish market, it is a very large transaction. However, in recent years we have seen several cross-border acquisitions of similar value, with Polish companies acting as buyers. This demonstrates their growing ambitions, maturity, and willingness – and in some cases even the necessity – to pursue international acquisitions. The Biofarm acquisition clearly confirms Polpharma’s ambition to become a regional leader.

For some time, we have observed strong interest in investments in Romania from both strategic investors and private equity funds. However, Romania is not the only attractive destination. Polish companies are looking for suitable acquisition targets not only in Central and Eastern Europe but increasingly also in Western European markets.

Łukasz Targoszyński

Partner in the M&A practice at Baker McKenzie

Thousands of employees to integrate

The group employs 6,500 people, the majority of whom – 4,500 – work in Poland. In the other countries across the region, Polpharma has around 200 employees. Each local team already operates independently in terms of resources and business planning.

“Leadership in the CEE region is not about imposing a single operating model on every country. It is about understanding local specifics and strengthening what works, while at the same time setting a common direction for the entire region. Each market has its own dynamics, regulations, patient access channels, and strong capabilities. Our role is to combine these experiences in a way that accelerates the development of the entire organization,” says Tamás Uri.

He considers the Biofarm acquisition an important step in implementing this strategy. He does not view the transaction solely as a way to increase the scale of operations.

“This is a combination with a company that has a strong market position, well-recognized brands, a history spanning more than a century, and excellent knowledge of the local market. We want to build on its existing achievements rather than replace them with our own operating model. We intend to strengthen Biofarm with our resources, experience, and capabilities,” the manager concludes.

Key Takeaways

1. A landmark transaction for a Polish group. In July 2026, Polpharma completed the largest acquisition in its 91-year history. For approximately PLN 1.1 billion (around EUR 256 million), it acquired Biofarm, a Bucharest-listed company and one of Romania’s largest pharmaceutical manufacturers and suppliers. In 2025, the company generated revenue of approximately RON 319 million and net profit of RON 101 million. OTC medicines and dietary supplements account for 95% of its business, complementing Polpharma’s portfolio, where prescription medicines represent more than 40% of products. Biofarm operates two manufacturing plants, employs around 400 people, and has strong brands that have been recognized in the local market for decades.
2. A strategic decision. The Biofarm acquisition is part of Polpharma’s new strategy. Between 2022 and 2025, the group increased revenue from PLN 4.3 billion (around EUR 1.0 billion) to PLN 5.3 billion (around EUR 1.2 billion), while operating profit rose from nearly PLN 1 billion (around EUR 233 million) to PLN 1.4 billion (around EUR 326 million). Although the Polish market still offers room for growth, the company is looking for new development opportunities. Central and Eastern Europe, excluding Poland, currently accounts for less than 10% of the group’s sales. Tamás Uri, the new head of the CEE region, aims to at least double this share within five years. At the same time, Polpharma plans to continue expanding its scale of operations in other markets as well.
3. Opportunities and challenges. Tamás Uri emphasizes that Czechia, Slovakia, Hungary, and Romania alone have a combined population of approximately 45 million people, while economically comparable Poland has around 38 million inhabitants. The group also has access to more than a dozen other countries in the region, representing tens of millions of additional potential customers. Among the challenges, the executive highlights growing pressure on margins, differences in regulatory frameworks, and the need for closer cooperation between teams operating in individual countries. The opportunity, however, lies in the exceptionally strong loyalty of regional patients to established brands. Polpharma can leverage its experience gained in the Polish market in this area.