Apokjeden

• net sales EUR 766 (723) million
• personnel 1,905
• average market share in wholesale 32%

Market overview

In 2007, Norwegian pharmaceutical sales, including hospitals and hospital pharmacies, showed a 3% market growth, totalling EUR 2,073 million in pharmacy retail prices. The sales included prescription and OTC products as well as commodities. The sales growth in privately owned pharmacies (excluding commodities) was 1.4%. The continuous slowdown was mainly influenced by higher sales of generics but also by the government’s price cuts. Medicine prices in Norway are among the lowest in Western Europe.

In 2007/08, Apokjeden’s sales amounted to EUR 766 (723) million, up by 6%. Operational performance improved significantly due to improvements in all of Apokjeden’s entities. The main reasons for the improved results were the growth in pharmaceutical sales and the higher share of commodities, which has increased the margins. The pharmacy channel as a market for commodities and OTC products is gaining volume from perfumeries and grocery stores. Apokjeden is the largest pharmaceutical retailer in Norway.

Main events

The pharmacy market in Norway is comprised of the major three European pharmaceutical distributors:  During 2007/08 Apokjeden continued as the market leader with a 36% retail market share followed by the two European competitors at 26% and 19%, state-owned hospital pharmacies (17%) and independent pharmacists (2%).

By the end of 2007, the number of Norwegian pharmacies reached 613, of which 231 pharmacies were part of the Apotek1 chain.

The competition for customers is toughening; pharmacies have longer opening hours than before and the number of pharmacies has increased. During the last reporting period, 40 new pharmacies were opened in Norway, including 13 owned by Apotek1. In spring 2007, Apotek1 launched a new private-label series within the personal care category, which had sold more than 1 million units during the reporting period.

Outlook for 2008/09

The government continuously strives to reduce the prices of generics in the hope of obtaining even more savings for society and patients. A new regulation concerning price reductions came into force at the beginning of 2008; however, the effects of this measure remain to be seen.

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 acquired the platform required for building a sustainable long-term position as the leading player in the Norwegian pharmaceutical market.

Key Figures