The customer at the centre
The online and offline offerings were linked even more closely in the first half of 2021 in order to be present wherever its customers are.
Net sales development
In the first half of 2021, the “Retail” business area generated net sales of CHF 834.3 million (+14.4%, excluding Coop Vitality). CHF 616.9 million (+9.6%) thereof was attributable to “Local Pharmacies” (POS) and CHF 217.5 million (+30.9%) to “Pharmacies at Home” (mail-order and home care). The main drivers of revenue growth in the “Local Pharmacies” sector were the various services offered to combat the COVID-19 pandemic, in particular also the distribution of COVID-19 self-tests. Mediservice generated a pleasing growth with new drugs for rare diseases in the “Pharmacies at Home” sector. Government-mandated drug price reductions caused sales to decline by -1.1% during the reporting period. Excluding this effect, net sales in the “Retail” business area would have risen by 15.5%.
By way of comparison: medication sales (prescription [Rx-] and OTC products) in the Swiss pharmacy market grew by 2.5% (IQVIA, Pharmaceutical Market Switzerland, in the first half of 2021).
Further development of the pharmacy network
The number of own pharmacies as of the end of June 2021 was 367 locations (net plus one compared to the end of 2020). Two new pharmacies were acquired and one new pharmacy opened during the first half of the year. At the same time, two locations were closed down as part of the optimisation of the pharmacy network. At the end of the first half of the year, the number of partner pharmacies was 150 (minus six compared to the end of 2020).
Own pharmacies and shareholdings
|
|
30.06.2021 |
31.12.2020 |
Change |
|
Amavita pharmacies 1) |
179 |
179 |
– |
|
Sun Store pharmacies 1) |
94 |
94 |
– |
|
Coop Vitality pharmacies 2) (joint venture with Coop) |
88 |
87 |
1 |
|
Mediservice specialty pharmacy 1) |
1 |
1 |
– |
|
Majority holdings in other pharmacies 1) |
5 |
5 |
– |
|
Total own points of sale |
367 |
366 |
1 |
1) Fully consolidated
2) Consolidated at equity
Independent partners
|
|
30.06.2021 |
31.12.2020 |
Change |
|
Amavita partners |
5 |
5 |
– |
|
Winconcept partner pharmacies |
145 |
151 |
–6 |
|
Total independent partners |
150 |
156 |
–6 |
Distribution of coronavirus self-tests at pharmacies
On 7 April 2021 one of the largest distribution campaigns in the history of the Swiss pharmacies was launched. To combat the COVID-19 pandemic, five COVID-19 self-test kits could be obtained free of charge per person per month upon presentation of a health insurance card. Amavita and Sun Store customers can also have their five tests sent to their home monthly via a subscription.
The Federal Council passed the corresponding resolution a few days prior to the launch, which gave pharmacy staff little time to prepare for the distribution of the self-tests. Another logistical challenge was that the self-tests were delivered to pharmacies in packs of 25 and had to be repackaged by them into sets of five. The regulatory requirements meant that the pharmacies had to repackage the self-tests so they could be dispensed to customers.
Thanks to the hard work of all the pharmacy staff, supported by numerous employees from other Service and Business Units, sufficient tests were available at all pharmacies from the outset of the dispensing campaign.
Focus on customer needs
The importance of pharmacies as the first point of contact for healthcare advice was once again increased in the period under review due to COVID-19. By the end of 2020, the pharmacies of the Galenica Group were already offering antigen and PCR tests. In spring 2021, services to combat COVID-19 were expanded with the offer of vaccination by the pharmacies. Additional pharmacy staff has been specially trained for this purpose and the available space in the pharmacies has been adapted accordingly. By the end of June 2021, the pharmacies of the Galenica Group have performed over 80,000 antigen and PCR tests. Additionally, more than 150 Amavita, Sun Store and Coop Vitality pharmacies in 12 cantons were granted permission to vaccinate and have administered over 38,000 doses.
«The modernisation of the appearance improves customer guidance in the Sun Store pharmacies and enhances the customer experience.»
Mail-order pharmacy gathers pace
Galenica also linked its online and offline offerings even more closely in the first half of 2021 in order to be present wherever its customers are. Including COVID-19 self-test subscriptions, sales gener-ated by the Amavita and Sun Store mail-order pharmacies doubled in the first six months of 2021; even disregarding COVID-19-related products, they still rose by an encouraging pleasing 31.4%. Since early 2021, Sun Store and therefore all the Galenica Group’s pharmacy formats are offering the services of a mail-order pharmacy, which allows patients to order their prescription medication to be delivered directly to their home.
A fresh look for Sun Store
Galenica is also investing in physical pharmacies and aims to further improve the quality of the advice and services it offers. From the second half of 2021 onwards, the appearance of the Sun Store pharmacies will be gradually updated in accordance with a new concept. In particular, the branches will optimise their customer guidance in order to improve the shopping experience and self-operated payment machines will be added to expand the payment options. The ongoing modernisation of the window display concept for the Amavita stores was continued.
Successful partnership with onlinedoctor.ch
Amavita’s pilot project with the online-based dermatologists’ network onlinedoctor.ch was a success and will be rolled out in around 110 Amavita pharmacies throughout Switzerland in the second half of the year. This will enable Amavita to offer customers an even better, easily accessible service for dermatological ailments: in addition to an expert initial consultation and treatment at the pharmacy, people with skin problems will also receive professional support for complex issues from onlinedoctor.ch, including a medical report and any necessary drug prescriptions.
Consistently high generic substitution rate
The generic substitution promoted by Galenica also curbed sales due to lower drug prices. The generic substitution rate remained stable at 72% at the end of the reporting period. This contribution by Galenica to minimising the effects of cost increases in the Swiss healthcare system will therefore have a lasting impact.
Mediservice – strong development with drugs for rare diseases
The specialty pharmacy Mediservice, which focuses on caring for people with chronic and rare diseases, saw a substantial increase in sales of new drugs for rare diseases during the period under review. Mediservice thus made a significant contribution to the strong growth of the “Pharmacies at Home” sector.