Tamro Group is the leading pharmaceutical wholesaler and distributor in Northern Europe. The Group operates in the Nordic countries, in the Baltic States and through a minority shareholding in Russia. Our average share of the pharmaceutical wholesaling market in the Northern Europe is around 49%. Tamro Group is engaged in the pharmaceutical retail trade in Norway, Estonia, Latvia and Lithuania. In these countries Tamro's aim is to operate as an integrated wholesale-retail company.

Tamro’s core business is pharmaceutical wholesaling and distribution, plus retail trade in four specific markets. Our customers in the wholesaling and distribution sector include pharmacies, hospitals and other healthcare institutions. The operations are based on close co-operation with our principals, i.e., manufacturers of pharmaceuticals and other healthcare products.

Tamro’s core business is supplemented by Tamro MedLab, which imports, markets and sells a broad range of basic and specialised healthcare products, laboratory products, diagnostics and biotechnical products and equipment. Tamro MedLab’s customers include healthcare facilities and industrial, research and educational laboratories.

Tamro is a fully owned subsidiary of the pan-European pharmaceutical wholesaler PHOENIX Group. Tamro's head office and domicile remain in Finland.

Main events 2004

• The slow market growth in the Nordic countries continued. The main reasons for the modest growth are still the patent expiries of some high-selling substances in 2003 and generic substitution. The dropping in prices has also intensified generic competition in all the Nordic countries. Furthermore, cost-containment actions prefer generics and parallel imports, and reimbursement decisions have become tougher.
  

• The overall pharmaceutical market growth in the Nordic countries was slightly below 5% compared to sales in 2003. Tamro’s market share in the Nordic pharmaceutical wholesale market was 51%. In the Baltic countries, the market growth was strong at 15% compared to previous year’s sales. Tamro’s average market share of pharmaceutical wholesaling in the Baltic region remained stable at the level of 25%.
  
  
• The regulation of the pharmaceutical markets were intensely debated but remained unchanged. The European Court of Justice investigates Swedish Apoteket AB’s retail monopoly. The Advocate General of ECJ has concluded that current situation is not compatible with EU law, but the final decision is still pending.
  
  
• Tamro Group’s net sales for the extended 13-month accounting year in 2004/2005 amounted to EUR 4,857 million. Comparable sales for the calendar year were 4,488 (4,169) million, an increase of 7.6%. The 13-month operating profit amounted to EUR 93 million (78 million in Jan-Dec 2003). Tamro Group’s pre-tax profit in 2004/2005 (13 months) rose to EUR 89 million (69 million in Jan-Dec 2003). The operating margin was 1.9% (1.9%).
  

• Tamro strengthened its position in pharmaceutical retailing. In Norway, Tamro’s ownership in Apokjeden, a pharmacy chain of 211 pharmacies, increased to 99.3%. In the Baltic countries Tamro acquired several individual pharmacies and some pharmacy chains. The largest acquisition was Farmacijos Projektai in Lithuania, with 46 pharmacies.
  
  
• Tamro became a full subsidiary of the pan-European PHOENIX Group 10 May 2004, when PHOENIX gained title to all shares in Tamro Corporation. On the same day, Tamro’s shares were delisted from Helsinki Stock Exchange, but Tamro continues to provide quarterly interim reports and transparency to the financial markets.