Tamro Finland

• net sales EUR 1,041 (1,039) million
• personnel 335
• average market share 58.1%

Market overview

The growth of pharmaceutical sales stagnated in 2006. Last year the total Finnish pharmaceutical market amounted to EUR 1,743 million in PPP, down by 1.1% from the sales figures for 2005. In 2006/07, Tamro Finland’s pharmaceutical sales totalled EUR 1,041 (1,039) million. The market share was on average 58.1% (57.9%).

The clear slowdown in market growth was largely caused by the statutory 5% wholesale price cut on all reimbursable medicines as of 1 January 2006, and by the continuous price competition between generic products. Moreover, pharmacy-specific wholesale rebates on medicine were prohibited as of 1 January 2006, which shifted pharmacies’ purchases to the fourth quarter of the previous year. Furthermore, the price cuts on three popular original statins affected the growth.

The liberalisation of nicotine treatment products complicated the distribution logistics without any softening in the GDP (Good Distribution Practices) requirements of pharmaceutical distribution. As of 1 February 2006, these products were allowed to be sold also in other retail outlets.

Main events

In January 2007 Tamro Finland’s marketing department, Pharmakon, launched its own brand Elivo. Elivo includes well-being products that are sold exclusively in pharmacies. The Elivo product family will be increased by 2–3 products or product series yearly, with the aim of becoming the most versatile well-being brand in pharmacies.

Moreover, an investment project was started to modernise the Tampere distribution centre’s employee facilities. The aim is to bring the employee facilities up to reasonable standards and thus further improve personnel’s work satisfaction. On the warehouse side, the improvements will further enhance quality. The project is expected to be finished during the first half of 2008.

Outlook for 2007/08

The unfavourable market development has made the operating environment most challenging. Tamro Finland will meet these challenges with a determined focus on maintaining cost leadership and high quality in all its operations. Despite the stagnating sales outlook, Tamro Finland – as the undisputed market leader – will increasingly generate innovative new services to its business partners.

Key figures