The European Pharmaceutical Wholesale Industry: - phagro
The European Pharmaceutical Wholesale Industry: - phagro
The European Pharmaceutical Wholesale Industry: - phagro
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<strong>The</strong> <strong>European</strong> <strong>Pharmaceutical</strong> <strong>Wholesale</strong> <strong>Industry</strong><br />
4 Core Indicators of the <strong>Pharmaceutical</strong> <strong>Wholesale</strong><br />
<strong>Industry</strong><br />
<strong>The</strong> analysis of the socio-economic importance of the <strong>European</strong> pharmaceutical<br />
wholesale industry should at first be highlighted by calculating economic core indicators<br />
providing insight into the structure of the industry. <strong>The</strong> focus of the analysis<br />
lies on the examination of the market structure, sales and employment within the<br />
industry with regard to trends that have shaped the industry in the last decade.<br />
4.1 Market Structure<br />
<strong>Pharmaceutical</strong> markets throughout the <strong>European</strong> Union show a high degree of<br />
diversity in regulation which also affects the organization of the pharmaceutical<br />
distribution system. Most important to the distribution of pharmaceuticals are socalled<br />
full-line wholesalers, as they carry the complete assortment of medicines<br />
available in one country. Furthermore, full-liners provide a wide range of added<br />
value services to manufacturers and retailers, thereby also creating benefits for<br />
the final customers of medicines – the patients. Basically, full-liners operate under<br />
two different types of distribution systems: the one-channel and the multi-channel<br />
system. Under a one-channel regime pharmaceutical companies conclude an exclusive<br />
distribution agreement for their product range with one single wholesaler,<br />
whereas under a multi-channel system products are carried by all wholesalers at<br />
the same time. <strong>The</strong> EU-member states have established a multi-channel distribution<br />
system, except Sweden and Finland.<br />
Other types of wholesalers are short-line wholesalers. <strong>The</strong>y only offer a limited<br />
product range and do not provide such a wide range of services like full-line<br />
wholesalers do. In several countries, pharmaceutical wholesalers are legally<br />
obliged to provide the full range of products to pharmacists, thus prohibiting<br />
short-line wholesaling. Such regulations, for instance, do exist in France, Italy,<br />
Belgium, Greece, Portugal or Spain and in some of the new eastern member<br />
states of the EU, but these laws are regularly not enforced. So the market share of<br />
full and short-line wholesalers in the <strong>European</strong> pharmaceutical wholesale markets<br />
can be interpreted as being a result of different public service obligations.<br />
Full-line wholesalers either operate on a national or regional level that is, they<br />
either have established nation wide distribution networks with strategically placed<br />
warehouses throughout a country or they only serve retail pharmacies, hospitals<br />
and other dispensing sites in a limited geographical area.<br />
IPF Institute for Pharmaeconomic Research 10