Logistics & IT
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 recorded net sales of CHF 3,241.4 million (+5.3%) in 2024. Of this, CHF 3,105.2 million (+5.2%) was attributable to “Wholesale” and CHF 157.2 million (+9.2%) to “Logistics & IT Services”.
The adjusted1) earnings before interest and taxes (EBIT) improved year-on-year by 34.2% to CHF 56.8 million and the adjusted1) return on sales (ROS) increased from 1.4% to 1.8%. Besides the increase in sales and efficient cost management in the second half of the year, the improved EBIT performance was primarily due to the absence of one-off special factors of CHF 12.8 million in the previous year. Excluding the one-off special factors in the previous year, EBIT improved by 3.0%, while the adjusted1) return on sales (ROS) remained stable at 1.8%.
Investments totalled CHF 45.2 million (previous year: CHF 46.4 million). These were primarily used for the gradual introduction of the new ERP software at Galexis and Alloga and for the development of digital infrastructure.
1) Excluding the effects of IFRS 16. See chapter “Alternative performance measures”.
Wholesale
Net sales of CHF 3,105.2 million (+5.2%) were generated in the “Wholesale” sector in 2024. Sales growth in the wholesale business with doctors (+7.8%) and pharmacies (+4.0%) both outperformed market growth, enabling market share to be gained again.
By way of comparison, the market for doctors recorded growth of 5.7%, while the market for bricks-and-mortar pharmacies increased by 3.5%. By contrast, the market for mail-order pharmacies shrank by 2.9% in the reporting period (IQVIA, Pharmaceutical Market Switzerland, 2024).
ERP implementation successfully launched at Galexis
Following the successful completion of the roll-out of SAP/4 HANA and EWM at Alloga, the first functionalities were also successfully put into operation at Galexis in the reporting year. The next milestone in spring 2025 will be the introduction of the warehouse management module (EWM) at the Galexis site in Lausanne-Ecublens, which will enable Galexis to achieve greater efficiency in order picking through additional automation and further increase the number of items available in Lausanne-Ecublens. The faster availability of products will significantly increase customer benefits in Western Switzerland.
Reducing the burden on pharmacy customers
Galexis has implemented a major logistical and technical measure to increase efficiency and reduce the workload of pharmacy staff: the expiry dates of non-medical products are now also transmitted digitally directly to pharmacies. Previously, only the expiry dates of medical products were recorded. Thanks to this initiative, manual entry at incoming goods is no longer necessary, meaning that all orders can be delivered together. This saves an average of 10-15 minutes of work per pharmacy per day.
Galexis offering even more comprehensive
Galenica continues to differentiate itself in the market for doctors with a comprehensive range of services and high degree of digitalisation. For example, the quickly installed DispoCura interface software enables doctors to place their orders without changing their system. In the financial year, Galexis was also able to close a gap in its portfolio: the offering for the medical profession now also includes relevant laboratory equipment, associated materials and furnishings. Training for the equipment and a reliable sales service are also part of the offer, which has met with a very positive response.
Logistics & IT Services
The “Logistics & IT Services” sector generated net sales of CHF 157.2 million (+9.2%) in financial year 2024. The main growth driver was the intra-group charging of IT services. With sales growth of 4.2%, external services such as Alloga’s pre-wholesale business and the IT services of HCI Solutions and Aquantic also performed well.
Encouraging development of the transport company Health Supply Ltd.
The joint venture with Planzer named Health Supply Ltd., which was initiated at the end of 2023, developed excellently and already employs around 200 employees. In the financial year, Galexis significantly exceeded its strategic objective of reducing complexity by bundling services outsourced to different transport service providers with Health Supply. The transport services of the joint venture are to be continuously expanded and are also available to other market participants. In addition, the logistics companies of the Galenica Group will continue to carry out deliveries independently where appropriate and necessary. Health Supply is an ideal complement to the deliveries made by the Galenica Group companies themselves.
Comprehensive offering at Alloga
Prewholesale specialist Alloga had a good 2024 financial year. Once again, it outperformed the market and was able to gain important new partners from the industry, not least thanks to its experience in cooling technology and security logistics and its renowned reliability. With the successful completion of the major ERP implementation, Alloga laid the foundation for further growth in 2024.
HCI Solutions continues to drive networking in the healthcare sector
The digital mapping of medication in the Swiss healthcare system is the core expertise of HCI Solutions. This positioning is emphasised by its new brand identity, which was introduced in 2024. The HCI Connect event series launched in 2023 was once again very well received in 2024. HCI Connect brings together healthcare professionals and eHealth specialists with the aim of further advancing the development of digital medication solutions. HCI Solutions’ in-house editorial team provides the foundation for ensuring that medication data is up-to-date and of high quality, thus making a significant contribution to the quality of therapy and patient safety in Switzerland.
High demand for Documedis®
The Documedis® software platform, a service from HCI Solutions, recorded another increase in demand in the reporting year. Documedis® is integrated into the leading software solutions for medical practices, pharmacies, hospitals, care homes and patient apps. It supports healthcare professionals in their day-to-day work – from creating medication plans (e-mediplan) to digital prescriptions (e-prescriptions). Specialists use Documedis® CDS.CE (Clinical Decision Support) when making clinical decisions or devising optimal medication therapy for patients. Documedis® CDS.CE was accessed over 369 million times last year, making a valuable contribution to increasing patient safety. New features are continuously being developed and made available to software providers as digital services.
E-prescriptions continue to evolve
Under the leadership of the two professional associations FMH and PharmaSuisse, the nationwide introduction of e-prescriptions is being steadily promoted. By the end of 2024, the technical infrastructure was in place for practically all doctors to be able to issue an e-prescription and for pharmacies to use it. HCI Solutions is actively involved in the developments as a private-sector competence partner and is driving the roll-out forward. With PharmaVista.ch, HCI Solutions offers all pharmacies in Switzerland a convenient way to assess and validate electronic prescriptions.