Nomeco

• Net sales: EUR 1,600 million (comparative: EUR 1,526 million)
• Personnel: 596 (620)
• Average market share: over 70%

Market Overview

The pharmaceutical market in Denmark grew by 6.4% from that of the equivalent period in the previous year. Hospital-sector growth continued to be strong, as compared to the more modest development in the pharmacy sector. The market share of generics increased further and pushed pharmaceutical prices down. The current generics prices are among the lowest in Europe. Total pharmaceutical sales in Denmark came to EUR 2,001 million in pharmacy purchase prices.

Nomeco’s net sales totalled EUR 1,600 million, an increase of 4.9%. The growth was driven primarily by increased market share. Nomeco is by far the largest wholesaler in Denmark, with a market share of over 70%.

The voluntary price stop agreement between the Danish government and the pharmaceutical industry was extended until 1 January 2010. Until then, pharmaceutical prices may be increased by 2%.

The number of pharmacies has continued to decrease. In 2008, there were 244 pharmacies in Denmark. The trend is expected to continue but at a slower pace. Most Danish pharmacies belong to co-operative chains that function mainly as purchasing associations.

Main Events

Nomeco’s pre-wholesale market segment developed satisfactorily as new pharmaceutical suppliers entered the market and Nomeco’s business concepts were well appreciated. Competition in the field intensified.

In the wholesale arena, Nomeco entered the liberalised market for veterinary pharmaceuticals.

The market share was maintained at a very high level through continuous improvements in the VMI (Vendor Managed Inventory) concept as well as other value-adding services. With the VMI concept, pharmacies are offered automatic replenishment of their inventories and the use of sales forecasting tools. As the number of pharmacies in Denmark is relatively low, it is possible for Nomeco to focus on the individual customer.

Outlook for 2009/10

The pharmaceutical market is expected to grow by 3-4% in the course of the 2009/10 financial year. The distribution margins are under pressure, and pharmaceutical suppliers are comparing and evaluating different distribution channels.

Nonetheless, Nomeco’s operations are expected to show solid growth.

Key Figure