Tamro Estonia

• net sales EUR 60 (55) million
• personnel 270
• average market share 31%

Market overview

The Estonian pharmaceutical market amounted to EUR 146 million in 2006 (in PPP). The market grew by 12%, which was 7% more than the previous year. Tamro Estonia’s sales reached EUR 60 (55) million in 2006/07.

The market rise was driven by strong economic growth, despite regulations affecting the reimbursement system, the focus on generic substitution and the implementation of reference prices.

The competitive situation in the pharmaceutical wholesale market remained tight. Tamro Estonia, with the pharmacy chain Apteek1, had a market share of 31% (30%). The market share of Magnum Group companies (Magnum Medical, Apotheka and Nordic Pharma Medical) totalled 51%.

Vertical integration between pharmaceutical wholesalers and pharmacies continued last year. As much as 83% of 522 pharmacies belong to pharmacy chains. Tamro Estonia’s chain Apteek1 is the largest Estonian pharmacy chain.

The retail market was also characterised by aggressive consumer marketing. A small market with low pharmaceutical consumption and high market saturation (less than 3,000 inhabitants per pharmacy) is challenging to pharmacies’ profitability.

Outlook for 2007/08

The market is estimated to grow by 10%, while margins may decrease as a result of competition.

Tamro Estonia aims to increase Apteek1’s competitiveness and customer loyalty. In retail, Tamro focuses on profitability through centralisation of operations and an automatic ordering process. In addition, Tamro Estonia continually investigates expansion possibilities in the local markets.

Key figures