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32 new pharmacies open in Sweden last year as the sector still attracts investors

Monday, 15 April 2013
The Swedish pharmacies sector has attracted about 345 new pharmacies created in Sweden since 2009, meaning the sector continues to attract investors despite fears that there was a growing stifling competition in the sector.

According to Sweden's pharmacy association's which just released its annual report, last year 32 new pharmacies were opened, and Sweden has gone from about 10 000 inhabitants per pharmacy before deregulation in 2009, to approximately 7500 inhabitants per pharmacy today.

In northern Sweden, it is about 5,500 people per pharmacy. In Stockholm, however, the move meant that pharmacies density has decreased, where there are now 8,500 inhabitants per pharmacy. In Europe, the average is about 4 000 inhabitants per pharmacy.

The industry has been dubbed highly competitive and it is evident in that despite less pharmacies comparatively, sales decreased slightly compared with last year. The number of prescriptions also increased compared to the previous year, but because the drug prices have fallen pharmacies receive less money per prescription and sales of prescription drugs decreased.

"Pharmacies do more work for less money," says Johan Wallér, CEO of Sweden's pharmacy association.

Prescription drugs account for 75-80 percent of pharmacy sales. Pharmacy profitability of prescription drugs is determined by the trading margin set by the Dental and Pharmaceutical Benefits Agency or in Swedish Tandvårds- och läkemedelsförmånsverket (TLV). '

To compensate, pharmacies have been buying others and building competitive advantages through take-overs and mergers. They have also been investing is other products that are non-medicinal but which usually go well with medicine sales. Evidence of this is that sales of services and products other than drugs, such as shampoo, has increased slightly, from Skr3.9 to Skt4.2 billion. Customer visits to pharmacies increased by ten per cent last year, and this is blamed on that pharmacies are committed to attracting customers with various offers.
by Scancomark.com Team

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