Galenica continues to successfully expand the integrated healthcare system of the future (GRI 2-22)

We are pleased to present the continued positive development of Galenica in this Annual Report. The company, which will celebrate its centenary in 2027, stands out due to its sustainable strategy and has a unique market position thanks to its business model. As the largest healthcare network, we play a leading role in the Swiss healthcare market. We always achieve this in line with our social and environmental responsibility and corporate governance based on diligently practised values. Since we introduced our new strategy just over four years ago, we have strengthened our market position sustainably, developed innovative services and advanced digitalisation in healthcare. In the financial year 2024, we further improved the customer focus in our organisation and refined our strategy in line with the four areas of activity: creating added value in the network for customers and partners, shaping the future of healthcare, achieving sustainable success through efficient and effective action, and daring to do new things as pioneers in transformation. We strive for focused growth and our philosophy as a healthcare network, which is now well established throughout the company.

Generational change and expansion of the Executive Committee

In order to align our pharmacies even more closely with the needs of customers, Stephan Mignot, Head of Marketing, became a new member of the Executive Committee as of September 2024. A generational change took place in the positions of CFO and Head of Corporate Communications. The current organisational structure promotes dialogue within the network through flat hierarchies and shared responsibilities. We drive forward overarching business processes centrally. We promote a strong corporate culture based on trust and collaboration. The business is directly represented on the Executive Committee, and with the core functions of People & Culture, IT and Finance, we are working together to modernise our systems and secure the necessary skilled employees. As a result, we are more in tune than ever with the needs of our customers, well-connected in the industry and focused on growth.

Added value for customers – expansion of “Consultation plus”

The customer-focused approach plays a key role in implementing the strategy and its associated objectives. We aim to inspire our customers and advance healthcare in Switzerland through innovative, sustainable and patient-oriented solutions. We achieve this by providing personal, expert advice and a unique range of products and healthcare services – available at anytime and anywhere throughout Switzerland. What started as a pilot project at the Amavita pharmacy in Zollikofen in 2023 has since made promising progress in 2024: our “Consultation plus” service offers the highest level of discretion, from online appointment booking to private meeting rooms. It strengthens the pharmacy’s position as a highly qualified point of contact in the healthcare sector. Over 40 Amavita pharmacies throughout Switzerland already offer advice and solutions for ailments such as skin and bladder problems. “Consultation plus” is continuously being refined and its roll-out expanded in dialogue with the pharmacy teams and by incorporating customer feedback. To meet the growing demand for consultation and treatment services in pharmacies, we focus on high customer loyalty, efficient processes and integrated collaboration. Another 25 pharmacies will offer “Consultation plus” as of spring 2025. We are also striving to ensure that consultation and services offered in pharmacies are reimbursed by health insurers to a greater extent.

Digitally connected – shaping the healthcare of the future

Digitalisation is crucial for the advancement of a cost-efficient healthcare system. Galenica plays a leading role in this. Collaborating with digital healthcare platforms is an important part of Galenica’s digitalisation strategy. This investment aims to set new standards for patient-centred care and ensure fast, safe and cost-effective access to high-quality healthcare services. At the same time, the pharmacy is increasingly being positioned as a central point of contact for health-related matters via digital access for customers. With our range of products and services, we offer integrated solutions as a single provider, work with the best partners and can now fulfil needs in a more seamless, efficient and, above all, personal way.

Unique in Switzerland – our home care services

Galenica now also offers a unique range of services across Switzerland for retirement and nursing homes as well as home care organisations. It includes the blister packaging of medications, the fully automated ordering and billing of consumables and care products, and clinical nutrition. Even considered individually, these offers provide valuable relief for nursing staff. In combination, they mean even greater added value. With access to all these services offerings on the shared digital platform from Lifestage Solutions, the home care offers as a whole have attracted great interest from managers of retirement and nursing homes as well as home care organisations. Similar to the online pharmacy shops, which are the digital gateway to all products and healthcare services for private customers, healthcare professionals also have the opportunity to access bundled offers from the Galenica network.

Galexis offering even more comprehensive

Health Supply, the joint venture with Planzer, launched in late 2023, performed well in 2024 and already employs around 200 people. With the aim of advancing pharmaceutical logistics through optimised and sustainable transport solutions, we focus on delivering medicines and medical devices to pharmacies, doctors, hospitals and care homes efficiently, safely and in an environmentally friendly way. In the medical market, Galenica continues to stand out with a comprehensive range of services and a high degree of digitalisation. For example, the easy-to-install DispoCura interface software enables doctors to place their orders without changing systems. In the 2024 financial year, Galexis also closed a gap in its offering: the product range for the medical profession now 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. The ERP roll-out at Galexis also got off to a successful start. The first milestone in spring 2025 will be the introduction of the warehouse management module at the Lausanne-Ecublens site, which will enable Galexis to make products available for French-speaking Switzerland much more quickly in the future.

Sustainability as an integral part of our strategy

Health and well-being are at the heart of what we do. They are the reason we give our best every day. This is our vision – and sustainability is a core part of our strategy. We attach great importance to environmental responsibility, social commitment and responsible corporate governance. In 2024, we have made significant progress towards achieving our sustainability goals. For example, healthcare professionals throughout Switzerland once again increased their use of clinical decision support checks (CDS.CE) in the reporting year, this time to 369 million. The CDS checks are performed via the Documedis^® system by HCI Solutions and enable doctors, pharmacists and other specialists to check a patient’s current or planned medication for known risks, duplications or allergies to active substances. By using these checks, potential medication errors can be identified in good time and avoided, leading to safer and more effective treatment. By doing this, we have made a significant contribution to patient safety, our most relevant ESG topic. We have also introduced a new, completely digital quality management system for all our pharmacy formats, which has been used by 5,000 employees since the start of 2025 and greatly reduces the administrative workload. The protection of our data is another important topic for us, especially in light of the current developments in artificial intelligence. We therefore established the Data & AI Governance Board in 2024. This committee sets out a clear regulatory framework for the responsible use of data and AI applications.

Sustainability is embedded as a core principle in our corporate strategy. This means that we are well prepared for the future requirements of customers, partners and employees as well as potential political developments. Accordingly, our annual report not only reflects our financial performance, but also provides an insight into how we are paving the way to a more sustainable future. Read our GRI Report and the report on non-financial matters to find out what we do and what specific progress we made in 2024.

Our new working environment at headquarters – more room for change

We also continuously pursue our goal of being an attractive employer. This promise must be kept in order to retain skilled personnel and attract new talent. We promote an open corporate culture in which our employees feel comfortable and can realise their potential. Modern working environments are also part of this. A good example is our new office space known as the Swing Space, at our headquarters in Bern. Opened in July 2024, the redesigned location is serving as an innovative working environment for more than 800 employees until the move to the renovated tower in 2027. But the Swing Space is so much more than just an interim solution. It is also an example of how sustainability, innovative interior design and corporate culture can go hand in hand. Its features include the use of recycled materials, designs that allow for flexibility of use and a central meeting point that promotes collaboration. Open-plan workspaces, numerous meeting areas and a wide range of opportunities for dialogue provide the ideal setting for modern forms of collaboration. In addition, we have deliberately reused a lot of existing material and plan to use newly purchased equipment in the renovated headquarters, as well.

Galenica – a well-connected partner in healthcare

Galenica serves more than 100,000 customers in Switzerland in its pharmacies every day. In addition to our own pharmacies, we also supply over 8,000 healthcare institutions such as doctors, hospitals, care homes, drugstores and third-party pharmacies with medicines, medical devices and laboratory supplies from our distribution centres in Niederbipp and Lausanne-Ecublens. We are therefore a key player in the healthcare system and are committed to safe and cost-effective healthcare. As a network, Galenica collaborates with strong partners and applies its wide-ranging expertise to solve major social challenges. In conclusion, we can state that Galenica, with its integrated business model is prepared to make a significant contribution to the success of the healthcare system – today and tomorrow.

We would like to thank everyone who is accompanying and supporting us on this journey: first and foremost our employees, who give their best for our customers and patients every day. We would also like to thank you, dear shareholders, for placing your trust in us. Our thanks also go to our partners, who share our vision, as well as to our customers, who entrust us with their health and well-being every day.

Bern, 11 March 2025

Dr Markus R. Neuhaus

Chair of the Board of Directors

Marc Werner

CEO