FORM 20-F Grupo Casa Saba, S.A.B. de C.V.

Table of Contents
The devaluation of the Peso may affect our ability to increase the prices of some of our products. See “Item 3. Key Information—Risk Factors—Risk Factors Relating
to Political and Economic Developments”.
In Brazil, the pricing of certain pharmaceutical and non-pharmaceutical products sold through pharmacies are controlled and monitored by the Brazilian government
through the Câmara de Regulação do Mercado de Medicamentos, the Chamber for Regulation of the Medicine Market or CMED, with the general oversight of the Agência Nacional
de Vigilância Sanitária, the National Health Surveillance Agency or ANVISA. ANVISA is linked to the Ministry of Health and was founded in 1999. CMED was founded in 2003. The
foundation of both entities was an attempt to curtail spiraling costs associated with existing drug products that resulted from nearly a decade of deregulation and unchecked commercial
practices. During the time of deregulation, drug manufacturers set retail prices that were marked-up to cover wholesale and retail activities, as well as tax liabilities, which inflated prices
for the consumer. In such an environment, the prices paid by the consumer included a pharmacy mark-up as high as 30% of a medication’s total price. Moreover, a federal tax of 6%
and a state tax of approximately 18% were imposed, making the products costly as retailers passed on much of the cost to the consumer. In 2002, the retail pharmacy market in Brazil
suffered drastic declines due to a devaluation of the Brazilian currency. Nevertheless, prices in local currency continued to rise. In October 2003, legislation was enacted that reestablished
price controls and empowered ANVISA and CMED to monitor the prices, set a maximum sales price and determine maximum annual price adjustments, thus limiting the
degree to which pharmaceutical companies and pharmacies can set their own prices. Price controls are governed through regulatory mechanisms that allow for controlled percentage
increases due to fluctuations in the exchange rate, inflation rate and raw material costs, among other factors. Adjustments to price controls take place on an annual basis, on March 31st
of each year. The CMED established a maximum drug price adjustment of 5.85% for the year commencing on March 31, 2012.
In 1980, the Chilean government lifted its price controls on pharmaceutical products in both the private and public sectors, leaving the market to set the price.
Organizational Structure
Grupo Casa Saba is a holding company that has an ownership interest in the subsidiaries through which we operate. Grupo Casa Saba and all of our significant
subsidiaries listed below are organized under the laws of Mexico, except where otherwise indicated.
The following table sets forth our significant subsidiaries and our direct or indirect percentage equity ownership in such subsidiaries as of December 31, 2011:
Name of Subsidiary
(1)
Economic Interest
(Direct or Indirect) (2)
Mexican Subsidiaries 2010 2011
Direct Interest
Casa Saba, S.A. de C.V.(3) (Casa Saba) 48.21% 48.21%
Distribuidora Casa Saba, S.A. de C.V. (4) (Dicasa) 99.9% 99.9%
Publicaciones Citem, S.A. de C.V. (5) (Citem) 99.9% 99.9%
Transportes Marproa, S.A. de C.V. (6) (Marproa) 99.9% 99.9%
Farmacias ABC de México, S.A. de C.V. (7) (Farmacias ABC) 99.9% 99.9%
Controladora de Clínicas Ambulatorias y de Rehabilitación Sports Clinic, S.A. de
C.V. (8) (Controladora de Clínicas) 50.005% 50.005%
Centennial, S.A. de C.V. (9) (Centennial) 99.9% 99.9%
Grupo Mexatar, S.A. de C.V. (10) (Mexatar) 99.9% 99.9%
Controladora Casa Saba, S.A. de C.V.(28) (Controladora Casa Saba) 99.9% 99.9%
Real estate and other service companies (27) (23 subsidiaries) 99.9% 99.9%
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