James Dudley Management

James Dudley Management

A gradual deregulation of the supply chain especially pharmacy establishment and ownership rules in Europe fuelling the growth of retail pharmacy chains

“An important trend in the processes of deregulation concerns pharmacy ownership. In 2000 Norway followed the Netherlands in changing pharmacy ownership regulations thus enabling retail pharmacy chains to develop. So says a major new 18-country study from one of Europe’s top self-medication marketing experts”. James Dudley - ‘OTC Distribution in Europe – The 2005 edition – Embracing Change’.

In 2004 90% of pharmacies in Europe were still independent owner managed concerns. This is down from 93% in 2002.

There are, however, seven countries in Europe, out of the 18 under study in the report, which permit unrestricted multiple ownership of pharmacies. These are Belgium, Czech Republic, Netherlands, Norway, Poland, Switzerland and the UK. In Sweden all pharmacies are state owned. In Italy municipalities own chains of pharmacies and some of these have been sold to the three main international wholesalers.

In total, of the nine countries where chains exist almost 26% of pharmacies are members of chains.

Table 1

% of Retail Pharmacies in Private or Public Chains in Europe 2003

Country

% Pharmacies in Chains

Sweden*

100.0

Norway

97.3

UK

64.0

Belgium**

24.0

Switzerland

18.0

Netherlands

16.4

Italy*

9.2

Poland*

5.9

Czech

5.5

Total States with chains

25.6

Total Europe

9.9

*Mostly Publicly Owned
**Mostly Co-ops

Source: OTC Distribution in Europe the 2005 edition – Embracing Change © James Dudley Management Spring 2005

France, Germany, Italy and Spain account for two thirds of pharmacies in Europe. These countries are also the most resistant to change. Even so, partial deregulation has occurred in Germany and it is widely expected that full deregulation is only a matter of time. In Italy, while, municipal chains exist and some of these have been sold to the major wholesalers and others have been put out to tender, there is a legal debate on the future of such sales in Italy.

<p "="">Table 2<p "="">Pharmacy Ownership Restrictions in Europe

Country

No. Pharmacies

Third Party Ownership

Multiple Ownership

France

22,640

No

No

Germany

21,300

No

4 Maximum

Spain

20,093

No

No

Italy

16,140

Municipal Pharmacies only

No – In reality yes

UK

12,050

Yes

Yes

Poland

10,530

Yes

Yes

Belgium

5,272

Yes

Yes

Hungary

2,200

Wholesalers have shares in around 300 pharmacies

No

Switzerland

2,020

Yes

Yes

Czech R.

2,000

Yes

Yes

Netherlands

1,570

Yes

Yes

Slovak

1,168

No

No

Austria

1,114

Pharmacist must have a share

Pharmacist must have a share

Sweden

790

State Run

State Run

Finland

590

No

No

Norway

490

Yes

Yes

Denmark

290

No

4 Maximum

Slovenia

230

No

No

Total

120,487

   

Source: OTC Distribution in Europe the 2005 edition – Embracing Change © James Dudley Management Spring 2005

Details

OTC Distribution in Europe – the 2005 Edition – Embracing Change covers 18 European markets – Austria, Belgium, Czech Republic, Denmark, Finland, France, Germany, Italy, Hungary, Netherlands, Norway, Poland, Slovakia, Slovenia, Spain, Sweden, Switzerland and the UK.

This is the fifth edition of a report that identifies and tracks emerging themes driving change and influencing the shape and structure of Europe’s non-prescription and OTC pharmaceutical products markets.

OTC Distribution in Europe – the 2005 Edition – Embracing Change price ₤1,495

For details call James Dudley Management www.jamesdudley.info email information@james-dudley.co.uk telephone ++44 (0) 1562 747705

For table of contents visit The Bookshop – www.medotceurope.com

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