Tamro Latvia

• net sales EUR 106 (87) million
• personnel 311
• average market share 27%

Market overview

The pharmaceutical market in Latvia was characterised by high growth. The total pharmaceutical market increased by 25% in 2006, and the sales in pharmaceutical wholesale totalled EUR 210 million. In 2006/07, Tamro Latvia’s sales amounted to EUR 106 (87) million. The 27% market share in wholesaling was maintained.

The growth was fuelled by price increases and 3% volume growth. The growth was impacted by a considerable increase in state budget allocations for reimbursed medicines. Some medicines bought by hospitals through centralised purchases were included on the list of reimbursed medicines for outpatient treatment in 2006. Nevertheless, the proportion of state-reimbursed medicines in Latvia is still the lowest in the Baltic States and constitutes less than 30% of the total volume of medicines.

In 2006/07, pharmacy and wholesaler consolidation continued. Pharmacies were eager to join chains, making independent pharmacies increasingly rare. Several pharmacy chains have been sold to wholesalers.

Main events

Tamro Latvia continued its retail expansion through pharmacy acquisitions.

In order to attract more consumers, Tamro Latvia’s pharmacy chain Gimenes is publishing a client magazine called “Health Formula”. Additionally, several activities and value-added services were offered to Gimenes member pharmacies.

Outlook for 2007/08

The most important event in 2007 will be finalising a proposal for a new Pharmacy Law. This law may restrict Tamro’s possibility to acquire ownership of Latvian pharmacies.  

Tamro Latvia will follow closely developments in the retail sector and pharmacy chains. In order to form even closer relations with pharmacies loyal to Tamro, the company plans to develop a new cooperation programme under the name Aptieka1. This will include franchise-type cooperation agreements with the regular customer pharmacies.

Two major projects in 2007/08 include an integrated IT system implementation and a warehouse investment.

Key figures