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Logistics & IT

Management report

The “Logistics & IT” segment comprises the two sectors “Wholesale” and “Logistics & IT Services”. They operate and develop the logistics and IT platforms of the Galenica Group and offer services to all healthcare providers such as pharmacies, drugstores, physicians, hospitals and care homes. The focus is on optimising and further developing the range of logistics and services as well as innovative solutions to promote digitalisation in the healthcare market.


“Logistics & IT” segment key figures

The “Logistics & IT” segment achieved net sales of CHF 3,077.0 million (+4.9%) in the 2023 financial year. Of this, CHF 2,952.7 million (+4.7%) was attributable to the “Wholesale” sector and CHF 144.0 million (+10.1%) to the “Logistics & IT Services” sector. Government-ordered price reductions led to a decline in sales of -1.7% in 2023. Without this effect, the segment’s net sales would have increased by 6.6%.

The adjusted1 operating result (EBIT), i.e. excluding the impact of the IFRS 16 (Leases) accounting standard, fell by -14.2% year-on-year to CHF 42.3 million and the adjusted1 return on sales (ROS) fell from 1.7% to 1.4%. The decline in EBIT was due to special effects totalling CHF 12.8 million. On the one hand, extraordinary value adjustments on customer receivables of around CHF 6.0 million occurred in the first half of 2023, especially in the wholesale business with doctors. On the other hand, HCI Solutions was obliged by the Swiss Competition Commission (COMCO) to pay a penalty of CHF 3.8 million for a well-known 2017 ruling still pending before the Federal Supreme Court. In the second half of the year, a provision of CHF 3.0 million was also recognised for a possible sanction in the ongoing COMCO proceedings in the matter of “substantial central regulation”. Adjusted for these special effects, adjusted1 EBIT would have increased by 11.8% to CHF 55.1 million and ROS would have been 1.8%.

Investments totalled CHF 46.4 million (previous year: CHF 52.8 million). These were primarily used for the gradual introduction of the new ERP software at Alloga and Galexis and for the development of the digital infrastructure in connection with the strategic “Omni-Channel” programme.

1) Excluding the effects of IFRS 16. See chapter “Alternative performance measures”.



In the “Wholesale” sector, sales grew by +4.7% to CHF 2,952.7 million. Adjusted for additional sales in connection with COVID-19, sales growth amounted to 5.3%. The pharmacy customer segment recorded growth of 6.3% (adjusted for additional COVID-19 sales) thanks to further market share gains. The wholesale business with doctors generated growth of 3.6%.

By way of comparison: market growth of bricks-and-mortar pharmacies amounted to 4.4% in the 2023 financial year. The physician market grew by 7.8% in the reporting year (IQVIA, Pharmaceutical Market Switzerland, 2023).

The wholesale companies Galexis, Pharmapool and Unione Farmaceutica Distribuzione can look back on a successful financial year. In addition to its operational strengths and the generally positive market development, Galexis in particular also benefited from acquisition successes: for example, a major pharmacy chain from French-speaking Switzerland opted for the Galenica Group wholesaler’s offering in 2023.

Availability of medications remains a challenge

Although the situation eased thanks to increased production and stockpiles by pharmaceutical companies, the availability of medications remained problematic in some cases in 2023. In particular, narcotics, diabetes drugs and vaccines were not always available. Due to the low availability of certain medicines, generics producer Sandoz and Galenica launched the “Safety Stock” initiative in the first half of 2023. The associated increase in stocks at the distribution centres in Niederbipp and Lausanne-Ecublens proved to be effective: the higher availability reduced supply bottlenecks and eased the pressure on bricks-and-mortar pharmacies somewhat.

New ERP system

The introduction of the ERP (Enterprise Resource Planning) system at Galexis is proceeding according to plan. The new solution will be rolled out in 2024 at the Lausanne-Ecublens site. The completion of this major project is scheduled for 2025 with the roll-out at the main distribution centre in Niederbipp.


More sustainability at the sites

At the Niederbipp site, construction work began in autumn 2023 on a wild bee garden. The previously unused grassland has been transformed into a habitat for endangered wild bees – a small but important contribution to greater biodiversity, particularly for Galenica Group employees. Another sustainability measure, this time to reduce greenhouse gas emissions, is the installation of photovoltaics on the roof of the distribution centre in Niederbipp. The system comprises 5,700 solar modules and will be able to supply up to one-third of the site’s electricity needs. A solar system is also currently being installed in Lugano, at the site of Unione Farmaceutica Distribuzione.

Logistics & IT Services

The “Logistics & IT Services” sector generated net sales of CHF 144.0 million (+10.1%) in the 2023 financial year. Of this, CHF 70.5 million (+14.5%) was attributable to the outsourcing of internal Group IT services. The growth in sales with third-party customers of +6.3% to CHF 73.4 million was mainly due to the dynamic development of logistics services from Alloga as well as the IT services from Acquantic and HCI Solutions.

Greater efficiency and sustainable transport solutions in pharmaceutical logistics

In the reporting year, Galenica took an important step towards greater efficiency and sustainability in pharmaceutical logistics: in mid-December 2023, Galenica and logistics company Planzer announced the establishment of a joint venture called HS Health Supply Ltd. Health Supply will in future bundle all transport services that are already carried out by Planzer and other transport service providers on behalf of the Galenica Group. This will enable Galenica to reduce the complexity that has arisen so far in collaboration with various transport service providers and plan more effectively, particularly in urban regions. The joint venture will also be active in the development and implementation of sustainable transport solutions. Health Supply is also tasked not least with reducing the greenhouse gas emissions of both partners. Health Supply’s transport services are also available to other market participants. The logistics companies of the Galenica Group will continue to carry out deliveries themselves.

Comprehensive offering at Alloga

Pre-wholesale specialist Alloga had a good 2023 financial year. The ongoing investments in cooling technology and special logistics paid off: in addition to its robust basic business, Alloga was able to take over distribution from a leading manufacturer of vaccines. In the reporting year, Alloga also laid the foundations for transporting substances with high safety requirements in accordance with Good Distribution Practice (GDP) guidelines. The introduction of ERP at Alloga will be completed at the beginning of 2024. By the end of the 2023 financial year, two-thirds of business had already been processed smoothly in the new ERP system.


Commitment to greater patient safety

HCI Solutions was once again committed to increasing patient safety thanks to digital solutions in the reporting year. Medication is the most common form of medical therapy. It requires a complex interaction between doctors, pharmacists, nursing staff and patients. Lack of information or media disruptions when transferring prescriptions and medication plans often lead to errors that can endanger the safety of patients.

The medication master data from HCI Solutions, which is integrated into over 280 software systems and platforms, significantly reduces the risk of mixing up medications. With the help of Documedis®, a certified Clinical Decision Support (CDS), service providers can check a prescription for undesirable drug interactions and with the patient’s risk data. More than 23 million audits are carried out every month. This trend is on the rise, entirely in the spirit of improved treatment quality and increased patient safety. Documedis® also supports and integrates the national standards for eMediplan and e-prescriptions (eRX). The eMediplan is a patient-friendly overview of the medications to be taken. The falsification-proof eRX enables service providers to exchange prescriptions digitally. Both formats can be imported and processed by medical and pharmacy systems, eliminating the need for time-consuming and error-prone manual entry of information. In the past year, 1.2 million medication plans were issued via Documedis®, and use here too is growing rapidly. The eRX is still in the pilot phase. HCI supports the leading associations FMH and Pharmasuisse as an expert partner in the private sector. HCI will develop Documedis® into a comprehensive medication platform for doctors, pharmacists and nursing staff in the coming years.

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