Tamro Sweden

• net sales EUR 1,686 (1,708) million
• personnel 444
• average market share 53%

Market overview

The Swedish pharmaceutical wholesale market continued to grow at a faster than expected pace in 2007/08. Aggregated pharmaceutical sales in Sweden amounted to EUR 3,012 million in PPP, a 7% rise on the previous year. The growth was mainly driven by the increased medicine consumption due to an aging population and switches to more modern and costly therapies.

In 2007/08, Tamro Sweden’s sales were EUR 1,686 (1,708) million, down by 1%. The reduction is due to the fee based business model with two main suppliers. Despite intense competition in the pharmaceutical trade, Tamro Sweden was able to strengthen its position as the market leader. Tamro’s average market share rose to 53% in 2007/08.

The Swedish government intends to abolish the pharmacy monopoly assigned to the state-owned Apoteket AB as from 2009 and a majority of their outlets will be privatised. Privatisation is expected to bring healthy competition to the sector in terms of service efficiency and opening hours. It has been suggested  that a majoritiy of the current 900 pharmacies should be sold to international chains in clusters of 80-100 branches, whilst individual pharmacists should also be offered opportunities to buy single pharmacies.

Main events

Tamro Sweden conducted a customer survey for pharmacies during the reporting period. The result showed that Tamro’s customers value good customer service and the extranet for ordering products for pharmacies. As for the suppliers, especially  the smaller ones expressed a high degree of satisfaction.

During the reporting period, Mr Mats Johnson was appointed as the new Director of Logistics.

Outlook for 2008/09

The Swedish pharmaceutical wholesale market is expected to grow approximately 5-7% in 2008.

The ongoing abolishment of the Swedish pharmacy monopoly and the establishment of appropriate legislation for a fair competition between new entrants and Apoteket continue to top the agenda. The Swedish government is establishing a company that will handle the establishment of a neutral infrastructure company and also the selling of Apoteket’s shops. This company will decide which stores will be sold off and which ones Apoteket may keep.

Tamro Sweden will follow these developments closely and take all the necessary steps to secure the company’s market position and profitability. The new market environment offers the possibility to own pharmacies.

The possible sale of OTC products through other channels than pharmacies is also being debated in Sweden. From the beginning of March 2008, nicotine replacement products will be sold in about 5000-6000 outlets and it is expected that these new outlets will be responsible for about half of the market volume. A commissioner has suggested Sweden to accomplish a more comprehensive OTC liberalisation next spring. 

Key Figures