Nomeco

• net sales EUR 1,335 (1,231) million
• personnel 634
• average market share 70%

Market overview

The Danish pharmaceutical market increased by 7% in 2006, which was more than expected. The main reason was the strong growth in the hospital sector. Pharmaceutical sales through wholesalers amounted to EUR 1,190 million in PPP, surpassing the previous year’s sales by 7.1%. Nomeco’s sales in 2006/07 totalled EUR 1,335 (1,231) million.

During the spring of 2006 Celesio acquired a controlling stake in K.V. Tjellesen as well as all shares in Max Jenne. As a result, there are now only two providers in the local pharmaceutical distribution market.

In the past year or so, the competition has become fiercer in Denmark. Still, Nomeco managed to maintain its 70% market share.

Main events

During the year 2006/07, Nomeco’s VMI concept (Vendor Managed Inventory) was developed further. The concept involves automatic replenishment of the pharmacies’ inventories and forecasting tools for pharmacy sales. More than half of Danish pharmacies receive their orders through this service.

Outlook for 2007/08

As of 1 January 2007, the prices of RX pharmaceuticals have been frozen for a two-year period. This will likely reduce the growth rate of the aggregate pharmaceutical market.

Nomeco’s profit is also influenced by legislative initiatives that affect the pharmacy sector. Additionally, any further efforts aiming at reducing government medicine spending may influence the profit.

No substantial structural changes are foreseen at the pharmaceutical retail level in Denmark while the growth rate of the overall market in 2007/08 is expected to be slightly lower than in 2006/07.

Key figures