COVID-19 and the Pharmaceutical Industry

COVID-19 and the Pharmaceutical Industry [Kochański & Partners report]

3 July 2020 | Knowledge, News

International investment capital will flow to companies capable of developing a cure for COVID-19. However, the Polish pharmaceutical sector, contrary to earlier expectations, has been experiencing serious declines compared to pre-coronavirus pandemic quotations.

 Surprising declines

Although global pharmaceutical companies have responded relatively mildly to COVID-19, the Polish sector has been experiencing heavy declines, reaching 50% in mid-March, compared to the values at the beginning of the year. There are also no prospects for a rapid recovery from the crisis – by early June, the losses were reduced to 28%.

The difficult situation of Polish companies is largely due to a decrease in the number of pharmaceutical products purchased, resulting from patients limiting their visits to pharmacies and medical facilities for fear of coronavirus infection. The crisis in the sector is also fuelled by the collapse of the global supply chain, since many medical components were delivered to Poland from China and Italy.

Vaccine race

The limited potential for developing a coronavirus vaccine is one of the main causes of the crisis in the Polish pharmaceutical market. A rapid introduction of a cure for COVID-19 is one of the greatest challenges faced by the global pharmaceutical sector in the age of pandemics. The first company to reach this goal will experience a dramatic increase in revenue at previously unimagined levels. Investors around the world are thus investing heavily in those companies which they consider closest to developing the vaccine. Gilead Sciences, U.S., openly reporting on progress in vaccine development, recorded a stock market value surge at the beginning of the pandemic. However, investors had to quickly tone down their optimism. The observed change in the company’s valuation suggests that the inflow of capital is rather speculative. JP Morgan downgraded Gilead Sciences shares in early May to neutral.

U.S. and German recovery

Compared to Poland, the situation of the U.S. drug sector is quite optimistic. The pharmaceutical index was systematically recovering to reach 2.9% after falling by 24.5% in the second half of March. The positive trend is due to the high technological potential of U.S. companies, enabling them to meet the dynamically changing needs of consumers. One example may be Pfizer recording a jump in revenue from sales of a vaccine against pneumonia in recent months.

The long-term development prospects for the U.S. pharmaceutical industry will depend, however, on stabilizing relations with China, one of the United States’ main business partners.

The German pharmaceutical sector saw stock market indices reacting to the pandemic similarly to the U.S. indices, reaching the value from the beginning of the year following a decline of 28% in June. The COVID-19 pandemic, however, has exposed Germany’s strong dependence on the global supply chain – the sudden closure of borders revealed a problem with access to medicines in the local market.

 

DOWNLOAD THE REPORT

Latest Knowledge

What EU businesses need to know about foreign subsidies

Just two months after the Regulation came into force, the Commission launched a high-profile investigation into a contract awarded by the Bulgarian Ministry of Transport and Communications for the purchase of electric trains from a major Chinese manufacturer. This was intended to emphasise the EU’s stance on unfair competition and its determination to combat this phenomenon.

Labour law: what lies ahead in 2026?

Changes to the way the length of service is determined, new executive ordinances for foreigners, and new powers for the National Labour Inspectorate are just some of the changes in labour law that will come into force in 2026.

Protecting designs exhibited at trade fairs

How can intellectual property and designs that have already been presented to the public, for example at trade fairs, be protected? All you need to do is exercise your exhibition priority right. This mechanism allows you to file an application for such a design at a later date without affecting its novelty. Let’s see how it works in practice.

Contractual practices prohibited under the Data Act 

One of the key aspects of the Data Act is the introduction of provisions on prohibited contractual practices. These provisions are intended to protect businesses operating within the broadly understood digital industry that have a weaker contractual position.

Those who have data have power. The Data Act redistributes this power

The EU Data Act, which came into force in September 2025, represents a breakthrough in the regulation of data access and use. Data generated by devices, ranging from agricultural tractors and industrial machinery to solar panels and transport fleets, is no longer the sole property of manufacturers. Other market participants now have the opportunity to access and use this data to develop new, innovative products and services. The Data Act marks a departure from business models based on data monopolisation, to one requiring data to be shared in accordance with its rules. We are therefore entering a completely new reality.

KSeF and transfer pricing: a new era of transparency and operational challenges

The introduction of the National e-Invoice System (KSeF) represents one of the most significant challenges for group companies in recent years. Although the KSeF is intended to simplify the invoicing process and reduce tax abuse, it also has a significant impact on transfer pricing, particularly with regard to the documentation and settlement of TP adjustments.

Contributing assets to a family foundation – what to keep in mind

A family foundation is a legal entity whose purpose is to manage wealth effectively and ensure its succession without the risk of dispersing assets accumulated over generations. Therefore, a key issue related to the activities of such an organisation is the contribution of this wealth to the foundation in the form of various types of assets that will work for the beneficiaries. Let’s take a look at what this process involves in practice.

Cloud migration after the Data Act: new rights, lower costs and greater freedom

The Data Act requires a significant change in approach to cloud services. Companies should review their contracts and start planning updates immediately. It is crucial to introduce appropriate switching provisions and remove or renegotiate exit fees. Companies must also prepare their infrastructure, both technically and organisationally, for interoperability and migration in accordance with the new regulations.