Future of European Pharmaceutical Distribution, The

Manufacturer changes
Customer changes

Status of e-commerce in the pharmaceutical sector
The US experience
Legal barriers to European e-commerce
The opportunities
Pharmacy advantages
Patient advantages
Wholesalers' attitudes to e-commerce
Intranet opportunities
Government initiatives and the UK's NHSnet
The threats of e-commerce
The outlook for e-commerce

EDI links
Collaborative planning forecasting and replenishment
Enterprise resource planning
Specialist solutions

Manufacturer support services
Order fulfilment packages
Database technology
Electronic point-of-sale technology
Electronic order entry
Bar coding
Warehouse technology
Dispensing technology
Future systems

Barriers to crossborder distribution
Moves towards a single European pharmaceutical market
Pan-European globalisation of wholesalers
The impact of EMU
Parallel trade

The pharmaceutical marketplace
The OTC market
Generics
Distribution of generics
Players and roles in the supply chain
The hospital sector
Prewholesaling
Direct distribution
Margins and discounts
Wholesaler consolidation
Vertical integration
Pharmacy support
Trade channel analysis
Alternative distribution channels

Austria
Belgium
Czech Republic
Denmark 116 Finland
France
Germany
Greece
Hungary
Ireland
Italy
Luxembourg
Netherlands
Norway
Poland
Portugal
Slovakia
Spain
Sweden Switzerland
UK

Overview
Alliance UniChem
Boots
Galenica
Gehe
OPG
Phoenix
Sanacorp
Tamro

Competitive environment
Crossborder distribution
E-commerce
Supplier strategies
Relationships with the trade channels
Vertical integration

Figure 1.1: Information flows between wholesalers, suppliers and customers
Figure 1.2: Transforming the supply chain to an e-chain
Figure 1.3: A vision of the pharma e-business supply chain
Figure 2.1: Comparative average European price indices 1998
Figure 2.2: Total pharmaceutical expenditure per capita by country 1998 (ex-factory prices)
Figure 3.1: The role of the pharmacist
Figure 3.2: Number of inhabitants per pharmacy 1998
Figure 3.3: Wholesaler concentration in European pharmaceutical markets, based on the market share of the top three wholesalers 1997
Figure 3.4: New supply chain patterns 108
Figure 5.1: Revenue of Gehe divisions 1998

Table 1.1: Extent of Internet trading for all industries
Table 1.2: Usage and growth in e-commerce
Table 1.3: Benefits of e-business to the supply chain
Table 1.4: Advantages and disadvantages of e-commerce for patients
Table 1.5: Examples of European wholesalers' web-based pharmacy support systems
Table 2.1: Average delays in the launch of new drugs
Table 2.2 Current pharmaceutical market distortions within 'free trade' EU
Table 2.3: Distribution margin systems in Europe 1999
Table 2.4: VAT rates in the EU 1999
Table 2.5: Recent crossborder wholesaler mergers and acquisitions
Table 2.6: European market presence of pan-European wholesalers
Table 2.7: IPSO membership
Table 2.8: Membership of Euro Pharm Logistics 1996
Table 2.9: Membership of GIRP 1999
Table 2.10: Threats and opportunities of EMU
Table 2.11: Extent of parallel imports in Europe 1997/98
Table 2.12: Leading parallel importers 1997
Table 2.13: Economic indicators of CEE EU accession candidates 1997
Table 3.1: Leading prescription pharmaceutical markets in Europe 1998
Table 3.2: European pharmaceutical markets 1997
Table 3.3: European market forecast 1998-2002
Table 3.4: European OTC sales at public prices 1997
Table 3.5: Generic incentives in Europe 1999
Table 3.6: Leading international generic companies 1997
Table 3.7: Leading generic markets in Europe
Table 3.8: Distribution routes for generics as a percentage of the total 1997
Table 3.9: Recent pharmaceutical industry mega-mergers
Table 3.10: Prescription drug share of the pharmaceutical wholesale business 1997
Table 3.11: Number of different packs sold 1997
Table 3.12: Numbers of full-line wholesalers and warehouses 1997 and 1995
Table 3.13: The dominance of pharmacies and wholesalers in European markets 1997
Table 3.14: Varying objectives within the supply chain 83 Table 3.15: Examples of wholesalers' prewholesaling divisions
Table 3.16: Advantages and disadvantages of direct distribution
Table 3.17: Net wholesaler and pharmacy trading margins 1998
Table 3.18: Average price structure in European countries as a percentage of total retail price 1998
Table 3.19: Wholesalers' average credit terms 1996
Table 3.20: Rebates (as a percentage of sales of reimbursable products, excluding
VAT) paid by pharmacists to national health insurance institutions 1996
Table 3.21: Illustration of pharmaceutical wholesaler profitability compared with other players in the supply chain 1998
Table 3.22: Wholesaler concentration in the major European pharmaceutical markets 1998
Table 3.23: Retail pharmacy structure in the UK 1998
Table 4.1: Wholesaler margins 1 February 1997
Table 4.2: Austrian pharmacy margins 1 February 1997
Table 4.3: Sick fund discounts February 1997
Table 4.4: Leading Belgian wholesalers 1996
Table 4.5: Danish pharmacy margin calculation 1998
Table 4.6: Leading wholesalers in France 1998
Table 4.7: Leading wholesalers in Germany 1999
Table 4.8: German wholesaler margins July 1998
Table 4.9: German pharmacy margins July 1998
Table 4.10: Wholesaler and pharmacy margins in Hungary 1997
Table 4.11: Wholesaler and pharmacy margins in Italy May 1997
Table 4.12: Leading distributors in the UK 1998
Table 5.1: Leading European pharmaceutical wholesalers
Table 5.2: Performance of Alliance UniChem 1994-98
Table 5.3: Alliance UniChem's international sales 1998
Table 5.4: Activities of Alliance UniChem 1998
Table 5.5: Performance of Boots 1998-99
Table 5.6: Boots' revenue by division, year ending 31 March 1999
Table 5.7: Performance of Galenica 1996-98
Table 5.8: Performance of Gehe 1997-98
Table 5.9: Structure of Gehe 1998
Table 5.10: Performance of OPG 1994-98
Table 5.11: OPG's operating divisions
Table 5.12: Performance of Phoenix 1994-99
Table 5.13: Activities of Phoenix 1998
Table 5.14: Performance of Sanacorp Pharmahandel 1997-98
Table 5.15: Activities of Sanacorp Pharmahandel
Table 5.16: Performance of Tamro 1997-98
Table 5.17: Activities of Tamro 1998


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