Security of supply and procurement

Report on Non-Financial Matters

Supply bottlenecks in the pharmaceutical supply chain are becoming more and more frequent worldwide, including in Switzerland. We make every effort to ensure the greatest possible availability of medicinal products in order to guarantee the reliability of supplies to the population. We work closely with suppliers to ensure the greatest possible availability of medicines. An IT-based scheduling system also helps us to optimise procurement and logistics processes.

GRI 3-3
Art. 964b para. 1 CO
Art. 964b para. 2 no. 4 CO

The global availability of medicines is an increasing challenge – including in Switzerland. The COVID-19 pandemic has clearly shown how disruptions in global supply chains can exacerbate local bottlenecks. The reasons for this include the highly centralised production at only a few locations as well as quality problems or failures in the value chain. We counter these risks by continuously optimising our procurement and logistics processes in order to strengthen the resilience of our supply chain and ensure the reliable supply of medicinal products to the population.

Impacts, risks & opportunities	Characterisation
Supply bottlenecks or failures or quality problems in the value chain can lead to a lack of supply of medicinal products to patients. This can have consequences for the health and well-being of the Swiss population.	Negative, potential Downstream value chain
Yet another contribution to security of supply is the preparation of medicines in pharmacies, which enables individually required medications to be made available quickly – especially in the event of supply bottlenecks or special patient needs.	Positive, potential In-house operations and downstream value chain
Disruptions or interruptions in the supply / supply chain can lead to lower sales for Galenica.	Risk Upstream supply chain
Supply bottlenecks, failures or gaps can weaken relationships with partners and also have a negative impact on Galenica’s reputation.	Risk In-house operations and downstream supply chain

GRI 3-3
Art. 964b para. 2 no. 5 CO

Our objectives

The reliable supply of medicinal products to the general public is a top priority for us. We are therefore committed to maintaining the availability of these products at the highest possible level.

Goal	Status	Target year	Measurement parameter		2025		2024
We achieve an annual service level of 99% in the pharma sector.	x	Every year	service level		98.6%		99.0%

GRI 3-3
Art. 964b para. 2 no. 2-3 CO

Our management approach

The way the company works with its suppliers can impact the resilience of the supply chain or cause supply bottlenecks. Causes of the increasing supply bottlenecks include centralised manufacturing at just a few locations in the world as well as failures and quality problems in the value chain. As a leading fully integrated healthcare provider, Galenica depends on the ability of manufacturers to deliver. As a result, the reliable procurement and supply of medicines to the population are becoming increasingly important for Galenica. The challenges posed by the COVID-19 pandemic have further reinforced the relevance of reliable procurement and a reliable supply chain. A reliable supply of medicines is crucial to the health and well-being of the Swiss population. The main responsibility for this issue lies with the Galexis purchasing organisation.

Scheduling system and cooperation

Galenica works closely with suppliers to ensure the greatest possible availability of medicines. An IT-based scheduling system helps Galenica optimise its procurement and logistics processes. In addition, monthly communication takes place between pharmacies, Category Management, Logistics and Purchasing in order to ensure responses to changing market situations can be initiated quickly.

The “Safety Stock” initiative launched at the end of 2022 was continued in 2025. The initiative is a joint solution between Galexis and Sandoz intended to increase the safety stocks of Sandoz generic medicines for treating chronic diseases in order to bridge short- and medium-term supply bottlenecks in Switzerland in the best possible way. This extended inventory range enables a successful response to temporary supply shortages in the market.

Responding to critical bottlenecks in good time

The logistics companies of the Galenica Group review the inventory range in the pharmaceutical sector on a daily basis, enabling them to respond in good time to bottlenecks and increased demand. In the event of critical bottlenecks or increased demand for certain products, logistics companies quickly adapt their operations. The delivery of non-essential products, such as cosmetics or perfumes, is temporarily discontinued if this is necessary to guarantee the supply of essential products. In addition, the amount that each customer can order is reduced to prevent panic buying.

Availability of medications

Aspect	Unit	2025	2024	2023
Reliable procurement and supply chain
Service level: Availability of medicinal products on average	%	98.6	99.0	98.8

The availability of medications is a major global challenge and naturally also affects the Swiss market. This makes it all the more important that medications that are available in principle or will be available again can be delivered to service providers as quickly as possible. Here, Galenica’s logistics operations are able to make and keep over 98.6% of these medications available throughout Switzerland within 24 hours.