Polpharma S.A. Pharmaceutical Works is among the world’s top-20 generic drug manufacturers, operating seven manufacturing plants in Poland, Russia, and Kazakhstan, as well as six research and development (R&D) centers. The company’s products include approximately 600 prescription drugs and medications used to treat hospitalized cardiology, gastroenterology, and neurology patients. It is developing another 200 pharmaceutical products, including biotechnological drugs.
After operating under government control for more than 60 years, Polpharma reached a milestone when it became a privately owned entity in 2000, with all of its shares held by Polish investors. The company began a thorough restructuring and significantly invested in R&D, manufacturing, and distribution capabilities. By 2012, Polpharma had expanded its footprint through mergers and acquisitions in Poland, Russia, and Kazakhstan and was establishing representative offices across Central and Eastern Europe, as well as Central Asia.
By this time, planning, budgeting, and forecasting processes had become increasingly inefficient and expensive. Polpharma faced a serious challenge to address this, as it was operating in one of the most heavily regulated industries without accurate financial coordination across its multinational environment—each country having, for example, its own chart of accounts. Nor did the company have proper accounting procedures and controls for reconciling different currencies or legal and financial standards, such as fiscal years, tax rates, and report templates. Polpharma needed to standardize workflows across all locations and introduce state-of-the-art financial-management systems.
By deploying Oracle Hyperion Financial Management, Polpharma enabled rapid consolidation and reporting of financial results across subsidiaries and compliance with global regulatory requirements, such as generally accepted accounting principles (GAAP) and International Financial Reporting Standards (IFRS). The company’s finance team gained the ability to close monthly financial statements for 20 subsidiaries with the same staff that had been used for just 4 subsidiaries—a five-fold efficiency gain.
Polpharma has a leading share in key therapeutic areas in Poland and specializes in pharmaceutical preparations for cardiology, gastroenterology, and neurology. The company portfolio also includes dietary supplements, medical devices, cosmetic products, and phytopharmaceuticals (drugs with active substances derived from plants). Over-the-counter (OTC) medications account for a significant part of its product portfolio. Polpharma also develops biotechnological drugs, which are produced using living systems and organisms. It is one of Poland’s main manufacturers of active pharmaceutical ingredients (APIs), competing successfully in the developed pharmaceutical markets of the European Union and the United States.
Polpharma’s finance team faced regulatory pressures to deliver financial statements for each of its subsidiaries according to each local GAAP, as well to as create consolidated statements that complied with Polish GAAP and IFRS.
Polpharma used Oracle Hyperion Financial Management to ensure regulatory compliance across 20 countries while eliminating the need for external auditors and financial teams in each subsidiary. The reduction of the number of financial teams to 1 from 20 cut the company’s financial insight cost by 50%, not counting the reduced data-compilation time and effort. Polpharma now delivers its financial statements, which comply with all local standards and currencies, via a single, monthly financial-closure process in just five business days.
With Excel-based reporting, an accurate sales projection of new drugs and pharmaceutical ingredients was impossible. The amount of data generated by indicators, such as R&D progress, global, and local prices, and healthcare policies in different markets, was too large to fit into spreadsheets. The company based the allocation of sales and marketing resources on the business experience of Polpharma’s executive team rather than on quantifiable business insight.
To support enterprisewide planning, budgeting, and forecasting based on concrete sales and operational assumptions, Polpharma implemented Oracle Hyperion Planning. The solution integrates perfectly with the company’s financial management solution and feeds information back. The company can now calculate various financial indicators—such as R&D return on investment or break-even projections—from revenues forecasted in Oracle Hyperion Financial Management
Oracle Hyperion Planning also integrated seamlessly with Polpharma’s third-party enterprise resource planning (ERP) solution to ensure efficient and accurate data flow between the two systems and with Oracle Business Intelligence to create rich, interactive information dashboards that inform executive decisions. Polpharma’s 220 product managers can now update forecasts, budgets, volumes, prices, discounts, commissions, and numerous other variables at the same time, with no performance or data consolidation issues.
The deployment enabled Polpharma to inform executive managers’ decisions with interactive dashboards, ad-hoc reporting, consolidated production views, financial key-performance indicators (KPIs), and strategy-management tools.
Polpharma’s executives can now easily gather and synchronize real-time information across the organization, including multiple research programs, regulatory groups, manufacturing facilities, and sales and marketing teams. In addition, they can measure corporate performance against objectives, and decide how to use resources to identify and bring to market those products that will generate profits quickly.
According to the Institute of Economic Sciences of the Polish Academy of Sciences (PAN), Polpharma is one of the most innovative companies in Poland today, actively contributing to scientific development and health education and promotion.
“The Oracle team had a deep understanding of our industry and business context, and our collaboration was excellent. Oracle Enterprise Performance Management solutions help us strategize, plan, and optimize business operations, and they allow us to capture new opportunities in the current market while scaling for future growth,” said Wojciech Rosa, director of controlling department, Polpharma.
“We worked with Oracle partners Grupa Exorigo-Upos and MDDP Business Consulting to deploy the solution. The standard functionality of Oracle Hyperion Financial Management, which allowed out-of-the-box multiGAAP financial consolidation and reporting, greatly eased the deployment. We involved MDDP Business Consulting as a third-party project advisory, while external consultants helped to develop the business concept for the solution and assisted during the implementation process. Such an approach was really beneficial, because external knowledge was crucial to properly prepare and start the project, while additional resources helped our project team realize their daily duties and additional project tasks. Straightforward delivery of financial statements in accordance with numerous national accounting principles and reporting standards was exactly what we needed,” Rosa said.
Advice from Polpharma
“We chose Oracle partners Grupa Exorigo-Upos as an external implementer and MDDP as a business consultant because we did not have internal resources for such a project. The decision proved extremely beneficial for us. The team’s extensive product expertise helped us focus on our priorities and ensure success with a step-by-step approach. We met all deployment milestones and stayed within budget,” Rosa said.