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Another Swedish based pharmacy leaps into bankruptcy

Monday, 07 January 2013
Pharmacy Orpheus in central Stockholm has been declared bankrupt by the Board of the company and administrators are moving in.

According to the Swedish business daily, Dagens Industri, this marks the first bankruptcy in the sector this year, which has been struggling after the government's liberalisation of the sector. The Pharmacy Orpheus is reported to be part of Apoteksgruppen, an organization with nearly 160-affiliated small business.

The driver to the bankruptcy is said to be too fierce competition within the sector in Sweden. When the government, after pressure from the EU accepted to open up the sector for competition some 3-4 years ago, lots of companies were created with the hope to cash into a lucrative untapped sector.

"There are 35 percent more pharmacies today than before deregulation, so it is clear that the competition is tougher. For pharmacies in central locations such as this, it is particularly tough, "said Bridget Lange Sjoblom, Quality Manager at Apoteksgruppen to Dagens Industri.

Elsewhere, the look in the sector shows that pharmacy bankruptcies would be something to get used to in the coming months. In autumn 2011, two independent pharmacies went out of business: one in Luluå and one in Amal. The UK pharmacy chain, Boots, planned 100 stores in Sweden, and started eight - but only two remain now.
Apoteksgruppen, according to the Swedish business daily, is the fourth largest player in the market after state owned Apoteket AB, Apoteket Hjärtat and Kronans Droghandel.
By Scancomark.com Team

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