Tamro Estonia

• net sales EUR 70 (60) million
• personnel 281
• average market share in wholesale 32.

Market overview

The Estonian pharmaceutical market amounted to EUR 170 million in 2007 (in PPP). The market grew by 12%. Tamro Estonia’s sales reached EUR 70 (60) million in 2007/08, an increase of 17%.

The powerful growth on the Estonian market was driven by strong economic growth, despite regulations affecting the reimbursement system and the implementation of reference prices.

Main events

Competition in the pharmaceutical wholesale market remained tight. Tamro Estonia had a market share of 32%, being the largest single wholesaler in the country.

Vertical integration between pharmaceutical wholesalers and pharmacies continued last year. Tamro Estonia’s chain Apteek1 is the largest Estonian pharmacy chain. The company expanded the retail chain by 13 outlets.

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. Tamro Estonia’s retail market share was 36.5%, including fully owned and membership pharmacies.

Outlook for 2008/09

The market is estimated to grow by 12%, while margins may decrease as a result of competition.

Estonia Medicine Act might experience some changes during 2008. It is expected that the change of the Act will abolish restrictions concerning the establishment of pharmacies. If the Act comes into force, the number of pharmacies will rise and probably lift the prices of medicines. Other changes would concern eRecipe and social insurance.

Tamro Estonia aims to increase Apteek1’s competitiveness and customer loyalty. In retail, Tamro Estonia continually investigates expansion possibilities in the local markets.

Key Figures