UNIVERSITATEA “TRANSILVANIA” BRASOV

Wholesalers are firms that sell products to another intermediary. The typical case is that a
pharmaceutical wholesaler purchases drugs from a manufacturer and resells them to a pharmacy,
which in turn sells them to the end customer directly. The basic function of distributor is therefore to
satisfy customer needs and to match supply and demand.
3.4 Distribution challenges within the health care market in Europe
Into the structures of the German medicament distribution significant movement has been coming
within the recent years. Mainly the apparently inexorably rising expenditures of the health insurance
companies for medicaments force the legislator to measures, which are intended to limit the
increasing costs in this sector in a long-term basis.
3.4.1 Background of the distribution challenges
These efforts are executed in the light of the background of an increasing average age and an
associated increase usage of medicaments – especially for people in the ages above 65 years. The
permission of the internet pharmacies, the abolition of reference prices and the existence of
pharmacy chains has taken place recently. Application of fixed prices for certain products and the
permission of small chains represent thereby only the beginning of the changes within a former very
regulated market. The mentioned changes will affect substantially the health care system in the
European countries.
Moreover stores or supermarkets attached pharmacies for the near future are quite conceivable. The
question arises which consequences will have these modifications for the health care system 15. And
how they are viewed by the fact that an increasing part of the population is dependent due to
advanced age, increasing immobility and the need of a surface covering supply to evaluate?
3.4.2 Potential reforms of the supply network
In the media and the relevant literature completely different opinions are being expressed concerning
further reforms on the supply network. Certain market studies and strategy papers are based on a
long-term reduction of the pharmacy numbers of up to 30%. Usually these statements are based on
expectations of market participants being questioned via market research. A goal of this paper is to
examine a model which is based on mathematical relations how future reforms and changes affect
the pharmacy net in Germany and Europe. Since the changes are actually happening simultaneously
across the countries the same effects and impacts are being discussed.
3.4.3 Structure of the work analysis
The focus lies apart from the definition on the impact of the medicament distribution. In addition the
initial position and foreseeable developments are described and analyzed. Special attention is put on
the commercial stages. A view in the order-political context of the medicament trade follows. The
third subsection is concerned with the economic situation of the pharmacy and wholesale level under
15 Kotler, P. et al. (2003): Grundlagen des Marketing, 3. überarbeitete Aufl., München 2003
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