“Logistics & IT” segment
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 logistics and service offering as well as innovative solutions to promote digitalisation in the healthcare market.
“Logistics & IT” segment development
Net sales development
The “Logistics & IT” segment generated net sales of CHF 1,563.3 million (+3.0%) in the first half of 2024. Of this, CHF 1,496.5 million (+2.7%) was attributable to the “Wholesale” sector and CHF 77.7 million (+10.3%) to the “Logistics & IT Services” sector. “Logistics & IT” thus outperformed the overall market, which recorded year-on-year growth of 1.7% (IQVIA, Pharmaceutical Market Switzerland, first half of 2024).
Adjusted1 EBIT recovered strongly in the first half of 2024 with growth of 34.0% to CHF 25.4 million, with the EBIT margin increasing to 1.6%. In the previous year, the result was negatively impacted by special effects of CHF 9.8 million. Adjusted for these special effects, EBIT would have declined by 11.6% in the first half of 2024. The negative EBIT development was driven by temporary efficiency losses and additional burdens due to the modular introduction of the new ERP system at Galexis that started at the beginning of the year.
“Wholesale” sector
Net sales development
Sales in the “Wholesale” sector increased by +2.7% to CHF 1,496.5 million, with further market shares gained in both the wholesale business with doctors (+6.4%) and pharmacies (+1.7%).
The negative impact on sales performance due to the government-ordered price reductions also continued and amounted to -1.9% in the reporting period. Without this effect, net sales in the sector would have increased by 4.6%.
By way of comparison, the physician market grew by 4.0% in the first half of 2024, while the pharmacy market grew by 1.0%. The hospital market also grew by 0.7%. (IQVIA, Pharmaceutical Market Switzerland, first half of 2024).
Market share gains for doctors and pharmacies
The wholesale business operated by Galexis, Pharmapool and Unione Farmaceutica Distribuzione (UFD) once again performed well in the first half of 2024. Galenica companies were able to gain market share in the supply of pharmacies and medical practices. An important selling point for customers is the comprehensive range of services and the high level of digitalisation. For example, the quickly installed interface software DispoCura enables doctors to place their orders directly from their practice information system.
Improved medication availability
Generics producer Sandoz and Galenica are continuing their commitment to ensuring the sufficient availability of medicines, in particular narcotics, diabetes drugs and vaccines, through the “Safety Stock” initiative. Thanks to “Safety Stock”, the distribution centres in Niederbipp (BE) and Ecublens (VD) have a stable inventory, which reduces supply bottlenecks and eases stock flow in bricks-and-mortar pharmacies.
“Logistics & IT Services” sector
Net sales development
With net sales of CHF 77.7 million, the “Logistics & IT Services” sector achieved strong growth of 10.3% in the first half of 2024. The main driver of growth was the internal invoicing of IT services, while Alloga’s pre-wholesale business and the IT services of Aquantic and HCI Solutions also made a positive contribution to growth.
Successful launch of Health Supply
The joint venture Health Supply, which was founded by Galenica and the logistics company Planzer at the end of 2023, was successfully established in the first half of 2024. Health Supply provides services relating to the distribution of medicines and complements the services offered by the logistics companies of the Galenica Group. The transport specialist already employs more than 120 employees. The procurement of vehicles with variable load compartment temperatures is currently on the agenda. These will also be used in particular for the delivery of refrigerated vaccines in the run-up to vaccination season. This means that vehicles labelled “Health Supply” will increasingly be seen on the roads in the future.
Alloga well on its way
Pre-wholesale specialist Alloga had a good first half of the year. In addition to its core operational business, it was also successful at the project level, fully completing the migration to the new ERP system. As a result, capacity will be further increased and the ergonomics of internal logistics improved.
Commitment to greater patient safety
With high-quality data and tailored eHealth solutions, HCI Solutions contributes to the quality of treatment and patient safety. “Clinical Decision Support Checks” (CDS) are one of the most important building blocks for patient safety and are carried out via HCI’s digital Documedis services in leading hospital, doctor and pharmacy solutions – with significantly increasing frequency. 174 million CDS Checks were performed in the first half of the year, an increase of 30%. Documedis CDS.CE is a certified Class IIa medical device. This certification reinforces the company’s commitment to quality and safety and strengthens its position as a provider of high-quality healthcare solutions.
Inselspital Bern, Lucerne Cantonal Hospital (LUKS), St. Gallen Cantonal Hospital and other hospitals already use Documedis CDS.CE in their clinical information systems (CIS) on a daily basis. This not only reduces unwanted drug interactions, but also increases patient adherence with the eMediplan.
Offers for specialist personnel
HCI Solutions’ products and services are mainly targeted at manufacturers of primary systems, healthcare platforms and mobile applications, as well as healthcare professionals. This focus is supported by the new brand identity introduced in the first half of 2024 and is also emphasised by measures such as the HCI Connect event series. An informative event for healthcare experts was once again held at Galenica headquarters in early 2024, which was attended by around 400 guests. As a network-oriented company, Galenica sees great added value in the various players in the healthcare sector being able to connect and discuss their work. With this in mind, the company will also invite IT developers in the autumn of 2024 to further expand its network of digital specialists. Galenica will take advantage of the event to present its “Galenica as a Service” initiative, with which it provides access to its own developments on a standardised technical basis. This will help to create interfaces and connections that benefit patients.