Apokjeden

• net sales EUR 723 (699) million
• personnel 1.803
• average market share in wholesale 35%, in retail 35%

Market overview

In 2006 Norwegian pharmaceutical sales, including hospitals and hospital pharmacies, showed only a 2.9% market growth, totalling EUR 1,950 million in pharmacy retail prices. The sales included RX and OTC products as well as commodities. The market growth of privately owned pharmacies (excluding commodities) was 0.9%. The continuous slowdown was mainly influenced by higher sales of generics, but also by the government’s price cuts.

In 2006/07, Apokjeden’s sales amounted to EUR 723 (699) million, a 3.4% rise on the previous year. The operational performance improved significantly due to improvements in all Apokjeden’s entities.

The commodities market, in categories like skin care and nutritional products, showed strong growth in the pharmacy channel, whilst the sale of pharmaceuticals hardly increased. The pharmacy channel as a market for commodities and OTC products is gaining volume from perfumeries and groceries.

The pharmacy market in Norway is comprised of mainly by three European pharmaceutical distributors – Phoenix (Apokjeden), Celesio (NMD) and Alliance Boots. During 2006/07 Apokjeden was the biggest player with 35% retail market share followed by Celesio (25%), Alliance Boots (19%), state-owned hospital pharmacies (18%) and others (3%).

By the end of 2006, the number of Norwegian pharmacies reached 575 shops, of which 219 pharmacies were under the Apotek 1 structure.

Outlook for 2007/08

Market growth is expected to be modest. In line with Tamro Group’s strategy, Apokjeden will continuously focus on operational efficiency, cost control and customer satisfaction. Through significant investments, Apokjeden has established the platform required for building a sustainable long-term position as the leading player in the Norwegian pharmaceutical market.

Key figures