Nomeco

• net sales EUR 1,526 (1,335) million
• personnel 620
• average market share 73%

Market overview

The Danish pharmaceutical market increased by 6.4% compared to the same period last year. The main reason was the strong growth in the hospital sector. Pharmaceutical sales through wholesalers amounted to EUR 1,271 million in PPP, surpassing the previous year’s sales by 6%. Nomeco’s sales in 2007/08 totalled EUR 1,526 (1,335) million, an increase of 14% compared to the same period last year.

New legislation to liberalise the distribution of veterinary pharmaceuticals was adopted in April 2007. The new legislation also affects the wholesalers’ discounts to pharmacies. The effects of these changes are yet to be seen, but they are likely to reduce the growth rate of the aggregate pharmaceutical market.

The number of pharmacies in Denmark has been declining in recent years. In 2002 there were 282 pharmacies whereas in 2007 there were 252. Rationalisation measures have been carried out either by closing down small pharmacies or by consolidating them to existing ones. This trend is expected to continue in the future but at a slower pace.

The competition has become fiercer in the past couple of years in Denmark. Still, Nomeco maintained its 73% market share.

Main events

Nomeco’s pre-wholesale developed satisfactorily, influenced by the creation of new business concepts during the reporting period. These include data systems, e.g., for handling and distributing pharmaceutical samples and Business Intelligence solutions for improving transparency in the logistic supply chain.

In wholesaling Nomeco keeps its market share at the present high level by continously improving the VMI (Vendor Managed Inventory) concept. VMI involves automatic replenishment of the pharmacies’ inventories and forecasting tools for pharmacy sales. More than half of Danish pharmacies receive their orders through the service.

Outlook for 2008/09

No substantial structural changes are expected in the pharmaceutical distribution and retail in Denmark.

The growth rate of the overall market in 2008/09 is expected to reach 7%, which is slightly higher than in 2007/08. Furthermore, the share of parallel imported pharmaceuticals has been relatively large (more than 10%) and is expected to remain at this level. New pharmaceuticals are marketed mainly to hospitals, which contributes to the increasing turnover in this segment.

Key Figure