RETAIL/WHOLESALE

Berlin  -  The Swiss pharmaceutical trading group Galenica is counting on difficult times for the industry, in particular because of state intervention and price reductions. The company is, however, hoping to emerge stronger from this "phase": Chances could arise above all for its own pharmacy chains that could then be used "as part of its expansion strategy combined with consolidation". Today the completely verticalised company is already the uncontested market leader in pharmaceutical retail.

As early as 2008, Galenica earned more money with its pharmacies than with its wholesale business. A year ago the surprise coup then followed: For an unknown pricethe industry leader acquired Sun Store, until then the second largest chain operator in Switzerland. Suddenly, every sixth Swiss pharmacy from a total of 1700 belonged to the company, in which Alliance Boots holds at least a quarter of the stocks. With around 70 pharmacies, the Phoenix owned chain Capitole lies far behind.

In total, it brings Galenica to just under 380 locations today, 270 of which are its own branches and 110 are partner pharmacies as well as the mail-order pharmacy MediService. Due to the acquisition, the turnover in the previous year increased by 50 percent to 838 million Swiss francs (570 million euros). Added to this are takings from the joint venture with the supermarket chain Coop, through which another 40 pharmacies are operated.

In wholesale, the turnover increased by 1 percent to 2.1 billion francs (1.4 billion euros), in manufacturing by 2 percent to 441 million francs (300 million euros). The Galenica subsidiary Vifor is the third largest OTC supplier in Switzerland. Overall, the company turnover lay at 2.9 billion francs (2 billion euros), which is 7.5 percent more than the previous year.

Patrick Hollstein, Wed, Februay 24, 2010 09:53am CET