17.05.2013

Sweden: Oriola AB starts using DB Schenker real-time temperature monitoring system

DB Schenker has introduced a monitoring system that allows following the temperature of delivered goods in real time via computer. „Our new monitoring system is a contribution that, among others, pharmaceutical industry sees as something very positive,“ said Mats Grundius, the Head od Division Land within Schenker AB. All the daily deliveries of DB Schenker to Sweden's 1 350 pharmacies are monitored by the new system which follows temperature throughout whole transport chain.

Oriola AB is one of the first among DB Schenker’s clients to use the system. „The quality in our service is not a means for competition, it is a prerequisite for handling goods in our work. Cooperation with DB Schenker and the possibility of traceability on the delivery level and temperature monitoring in real time is an important part for guaranteeing quality throughout whole our distribution chain. We are very pleased to be among the first of DB Schenker’s customers to use the new monitoring system,“ said Susanne Regestam, Quality Manager at Oriola AB.

Intelligence reporting by Global Intelligence Alliance

Original article on Trailer.se in Swedish language

02.05.2013

Russia: Stary Lekar and 03 nominated for HR-brand 2012 award for introducing customer service standards

The project on creating and introducing standards for customer service at the pharmacy chains Stary Lekar and 03 has been running already two years and now is nominated for the HR-brand 2012 award. The authors of the project highlight that the most important tasks - “painless” integration of both chains and increase in turnover – have been met during the implementation.

According to Elena Pakulicheva, HR manager at Oriola-KD, the year of 2010, when the project was initiated, was a very difficult time for pharmacies. The changes in taxation and the emergence of vital and essential medicines list with price restrictions made it difficult for pharmacies to profit and survive. The Stary Lekar and 03 were no exceptions. “One way to increase sales was to improve the service quality in pharmacies,” says Inara Korenevskaya, the training department manager at Oriola-KD. “At the time both chains had different corporative standards and it was necessary to create and introduce one standard of customer service for both chains,” she adds. The company set clear objectives, as well as rules for employees, highlighting what is to achieve and how each employee can be involved.

The general idea in creating the standards was the focus on customer’s needs and quality consultation rather than on the need of pure selling. The basis of the service standards was laid down by the patterns of behavior by most successful pharmacy employees, who repeatedly had shown excellent results. The introduction of new standards was tested in different pharmacies and the system was constantly improved. Since the start of the training of staff in April 2011, more than 1,000 employees had been trained, including pharmacy managers.

Elena Pakulicheva notes that the moment the standard introduction program was fully operational, the sales numbers increased significantly. In addition, the unified standards now allow rotating of the personnel between pharmacies freely, the transparent system has increased the loyalty of employees, and there was no need for the company to invest large sums in order to implement the project.

Although some pharmacies still need the improvement and the work on the introduction of standards is continuous, the level of service quality in Stary Lekar and 03 had been rising. According to Elena Pakulicheva, the company is very proud with the project as it had not only improved the connection with customers, but also has created a feeling of solidarity within the company.

Intelligence reporting by Global Intelligence Alliance

Original article on Pharmpersonal in Russian language

25.04.2013

Finland: Russia delays Oriola-KD's progress

Oriola-KD has had a silent beginning of the year. The company's profit has decreased in half compared with the Q1 of the last year. To blame are the problems with the warehouse management system in Russia as well as the procurement, storage and pharmacy distribution of non-prescription medicines in Sweden.

Oriola-KD promises the pace will pick up towards the end of the year and that the Group's turnover without the non-recurring items will increase from what it was in 2012. The company is doing well in the Nordics and Baltic states, but the problems in Russia still continue.

The company's gross profit in the January-March period was EUR 0.9 million, whereas a year earlier it was EUR 2.5 million. The profit per share decreased from EUR 0.01 to zero. The operation loss in Russia grew from EUR 1.1 million to EUR 3.6 million, whereas the business profit in Sweden and the Baltic states increased a little. The turnover of Oriola-KD was EUR 612.3 million compared to the EUR 590.8 million a year ago.

Intelligence reporting by Global Intelligence Alliance

Original article on Kauppalehti in Finnish language

25.04.2013

Finland: Oriola-KD falls short of expectations

The operating profit of Oriola-KD decreased to EUR 2.3 million compared to the EUR 5.2 million in the January-March period the year before. The six analysts of Factset expected Oriola-KD to exceed EUR 6 million in business profit. Also the profit per share decreased to zero where it had been EUR 0.01 a year earlier and the analysts had expected it to be EUR 0.01-0.03.

The outlook is still the same: Oriola-KD expects both operating profit without non-recurring items and turnover to grow compared to 2012. While the growth of the turnover from both wholesale and retail business in Russia is expected to slow down in the first part of the year, the profit is expected to be weaker than the previous year due to problems related to the implementation of the warehouse management system started in January 2013.

Intelligence reporting by Global Intelligence Alliance

Original article on Arvopaperi in Finnish language

09.04.2013

Finland: Oriola-KD and MSD made an agreement on the distribution and marketing of pharmaceuticals in the Baltics

According to the agreement, Oriola-KD will be responsible for the distribution and marketing of MSD’s pharmaceuticals in Estonia, Lithuania and Latvia. The value of the agreement between Oriola-KD and Merck Sharp & Dohme (MSD) has not been announced.

MSD will still be responsible for the sales permits of the medicines and product strategies, as well as the price and reimbursability issues, medicinal services and clinical pharmaceutical research in the Baltic countries.

Intelligence reporting by Global Intelligence Alliance

Original article on Arvopaperi in Finnish language

Similar type of article on Focus in English language not available as a link

08.04.2013

Sweden: Oriola-KD buys Medstop

Oriola-KD, which already owns Kronans Droghandel, buys pharmacy chain Medstop. Medstop's owner, Segulah, writes in a press release that the company is valued at SEK 1460 million.

Together, the two pharmacy chains have a market share of about 21 percent and nearly 290 pharmacies with approximately 1,900 employees. “There will be no closures as a result of this agreement. We have no plans to close any pharmacies,” says CEO Lars Birkeland. The deal must be approved by the Competition Authority and the Medical Products Agency. If this happens, the two chains together will become the second largest chain in Sweden. Lars Birkeland thinks there will be further consolidation in the Swedish pharmacy market in the future.

Intelligence reporting by Global Intelligence Alliance

Original article on Svenska Dagbladet in Swedish language

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08.04.2013

Finland: Oriola-KD is buying Medstop, the fifth largest pharmacy chain in Sweden

The total value of the deal is around 176 million Euros and is expected to be signed in the second quarter of 2013. Medstop owns 65 pharmacies in Stockholm, Gothenburg and Malmö. The net sales of Medstop were EUR 273 million and market share of the Swedish pharmacy market was 7,5% at the end of the last year.

According to information from the company, the deal is part of Oriola-KD's strategic growth on the Swedish market and will bring synergy benefits in acquisitions, storage and distribution.  After the deal Oriola-KD will own a total of 290 pharmacies in Sweden and its market share in retail business will grow to 21% from the current 14%.

Intelligence reporting by Global Intelligence Alliance

Original article on Talouselämä in Finnish language

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26.03.2013

Sweden: Kronans Droghandel opens a new pharmacy in Nyköping

On the 26th of  March Nykoping gets a new Kronans Droghandel pharmacy. It is located next to Coop Forum.

“While competition is fierce, we are confident that we will be well placed to attract many customers to our attractive pharmacies,” says Lars Birkeland, CEO of Kronans Droghandel.

Intelligence reporting by Global Intelligence Alliance

Original article on Dagens Handel in Swedish language

25.03.2013

Finland: Inderes cautiously positive in regard to Oriola-KD

Inderes has raised the target price of Oriola-KD´s shares to EUR 2,4 compared to the previous EUR 2,3. The recommendation for the share is still "to reduce".

"As a result of the struggles with the profitability during the last years the price of company’s share has decreased to very low in the quantity-based evaluation. The P/S figure showing the relation of market value and turnover is a very low 0,14. It means that even with a small improvement in profitability Oriola-KD has a good chance of marking a positive turn, Inderes states in the Nordnet review. Inderes points out that the other evaluation indicators are still overly high.

There are anyhow many prerequisites for the Oriola-KD´s profit growth according to Inderes: The founding of new pharmacies in Sweden should slow down and there should be consolidation in the market. The regulation issues in the pharmaceutical industry should not significantly weaken the industry’s profitability in the future. In Russia the operational risks connected with the large expansion projects of wholesale should be avoided.

Intelligence reporting by Global Intelligence Alliance

Original article on Arvopaperi in Finnish language

12.03.2013

Sweden: Oriola AB's new arrival hall is ready

Oriola AB has finished building a new arrival hall in Enköping. The new hall will be used for the reception and storage of medicines. “The new arrival hall creates the best conditions for Oriola to handle increased volumes,“ says Thomas Gawell, CEO of Oriola AB, in a press release. The new hall shall be fully operational this month.

Intelligence reporting by Global Intelligence Alliance

Original article on Dagens Apotek in Swedish language

22.02.2013

Sweden: Kronans Droghandel opens new pharmacy in Gothenburg

Kronans Droghandel opens its 222nd pharmacy. This time it is in Wieselgrensplatsen, which is situated in Hisingen in Gothenburg, next door to Coop.

“Kronans Droghandel will get a good position in Wieselgren. While competition is fierce, we are confident that we will be well placed to attract customers,” says Lars Birkeland, CEO of Kronans Droghandel.

Intelligence reporting by Global Intelligence Alliance

Original article on Dagens Handel in Swedish language

14.02.2013

Sweden: Kronans Droghandel opens a new pharmacy in Helsingborg

Kronans Droghandel has opened a new pharmacy in Helsingborg. “While competition is fierce in the city, we are confident that we will be well placed to attract customers”, says Lars Birkeland, CEO of Kronans Droghandel in a statement.

With the opening of the new pharmacy Kronans Droghandel has now a total of 221 pharmacies. Kronans Droghandel is currently the third largest pharmacy chain in Sweden.

Intelligence reporting by Global Intelligence Alliance

Original article on Dagens Apotek in Swedish language
Similar article in Webfinanser in Swedish language

11.02.2013

Kronans Droghandel gets the most central pharmacy in Sweden

Kronans Droghandel will open a new pharmacy at Stockholm Central Station, which is supposed to open this summer. The premises were once belonging to Pressbyrån.

Many commuter travelers pass by this spot daily. But since the new pharmacy will be located inside the control gates, it will be impossible to visit the pharmacy without a valid ticket.

Intelligence reporting by Global Intelligence Alliance

Original article on Svensk Farmaci in Swedish language

11.02.2013

Kronans Droghandel shows better results in Sweden

Oriola-KD's pharmaceutical sales in Sweden increased the operating profit from EUR 10.6 million to EUR 16.2 million in 2012. This is documented in Oriola's annual report. Oriola-KD has 13.4 percent market share in the retail sector, and 35.8 percent in the wholesale sector, which is a slight decrease from last year.
Swedish Oriola AB's agreements with four pharmacy chains regarding purchasing, warehousing and distribution are expected to yield positive results from the second half of 2013.

Intelligence reporting by Global Intelligence Alliance

Original article on Dagens Apotek in Swedish language

10.01.2013

Sweden: Oriola AB expands its distribution center in Enköping

Oriola AB is expanding its distribution center in Enköping. When it opens in January, the storage surface will be doubled, and it will be possible to extend it by additional 25% according to Claes Olsson, Logistics Manager at Oriola AB.

The reason for the extension is the deal that Oriola AB made with four pharmacy chains earlier last year. It was in May 2012 that Medstop, Apoteksgruppen, Doc Morris and Vårdapoteket jointly chose to shift their purchases of prescription drugs to Oriola AB.

Intelligence reporting by Global Intelligence Alliance

Original article on Ena-Håbo Tidningen in Swedish language

10.12.2012

Sweden: Oriola-KD plans to open more than 10 pharmacies in Sweden

Oriola-KD is planning to open more than 10 pharmacies next year in the Kronans Droghandel pharmacy chain, according to Dagens Industri. Kronans Droghandel finished last year with loss, but Joni Ihantola, Vice President Treasury and IR of Oriola-KD,  expects that this year will bring better results: "The Krona adds profitability and we can see that the sales are developing well."

The pharmacy competition in Sweden is tough. Ihantola sees that Oriola-KD’s strength is being the biggest industrial actor in the market, and the greatest challenges are in the development of the supply and being considered as an attractive employer.

Kronans Droghandel chain has 218 pharmacies in Sweden at the moment. Oriola-KD became the sole owner of the chain last week, when it bought the 20% minority share of Kronans Droghandel from its previous owner Kooperativa Förbundet ekonomisk föreningen for about EUR 12.3 million.

Intelligence reporting by Global Intelligence Alliance

Original article on Taloussanomat in Finnish language
Link to the article on Dagens Industri in Swedish language
Similar article on Åbo Underrättelser in Swedish language

07.12.2012

Sweden: Oriola-KD is prepared for the coming changes next year

As sole owner of Kronans Droghandel Oriola-KD has positioned itself well for the restructuring of the pharmacy market next year.

“Kronans Droghandel is actually the only company that as a concern is present in both wholesale and retail. Then it can be good to be the sole owner. It is always difficult to make quick decisions if one is in a business partnership,” says Åke Hallman, former president of the then state Apoteksbolaget and now a consultant at Samhällsinsikt.

He believes that Kronans Droghandel plans are to grow.

Intelligence reporting by Global Intelligence Alliance

Original article on Dagens Apotek in Swedish language

25.10.2012

Oriola-KD's operating profit in Q3 2012 exceeded expectations

Oriola-KD's operating profit in July-September increased to EUR 7.5 million (3.4). Earnings per share were EUR 0.02 (0). According to analysts’ forecasts in FactSet database, Oriola-KD was expected to reach operating profit of EUR 6.6 million and EUR 0.02 earnings per share. Net sales in Q3 increased by 12.4 % to EUR 586.1 million (521.6).

Oriola-KD refines the outlook for operating profit and now expects its FY operating profit excluding one-off items to come to EUR 24-28 million in 2012. The previous guidance was EUR 23-33 million. For net sales the outlook stays the same - net sales are expected to grow by 10-15%.

Original article on Arvopaperi in Finnish language

Intelligence reporting by Global Intelligence Alliance

26.09.2012

Sweden: Kronans Droghandel opens yet another mini-clinic

On Thursday the first mini-clinic opens in the Southern part of Stockholm inside Kronans Droghandel on Torkel Knutssonsgatan.

The Mini-clinic can take care of patients who have simple illnesses, such as ear and eye inflammation, throat infections and urinary tract infections. One does not need to make an appointment for a visit.

Intelligence reporting by Global Intelligence Alliance

Original article on Södermalmsnytt in Swedish language

07.09.2012

Sweden: Oriola AB is ready to provide services to pharmacy chains

Oriola AB has opened a new office in Stockholm. Earlier this year Oriola AB signed contracts with pharmacy chains Apoteksgruppen, Doc Morris, Medstop and Vårdapoteket. Oriola will take care of purchasing, warehousing and distribution of OTC drugs and traded goods for these pharmacy chains. The new services will be launched in October and the warehouse is now being prepared. The head of the new services is Catherine Gabrielson.

News  published also in GIRP on 15.10.2012.

Intelligence reporting by Global Intelligence Alliance

Original article on Dagens Apotek in Swedish language

26.07.2012

Finland: Oriola-KD estimates the risks and future growth of market

Oriola-KD estimates that the profitability of Russian wholesale business in the near future can be affected by decrease in gross margin caused by tense competition and increased credit risks connected with customers.

The company believes that currency risks are most significant financial risks as changes in the value of RUB and SEK have influence on Oriola-KD’s performance and equity. The company expects annual growth of pharmaceutical market in 2012-2016 to be an average of 0.5% in Finland, 1% in Sweden and 11.5% in Russia in local currencies.

Intelligence reporting by Global Intelligence Alliance

Original article on Taloussanomat in Finnish language

26.07.2012

Finland: Oriola-KD has reached profit in Q2/2012

Oriola-KD’s result has improved in Q2/2012. Profit before tax has reached EUR 2.2 million, while a year ago company suffered EUR 36.5 million losses. Net sales grew by 10.1% to EUR 589.7 million from EUR 535.5 million Q2/2011. EPS grew to EUR 0.01 from last year’s -0.20. According to the company’s CEO Eero Hautaniemi operating profit increased from better results in Swedish retail and Russian wholesale. Operating profit in Swedish retail and wholesale improved by EUR 2.7 million and losses in Russian retail and wholesale decreased by EUR 4.1 million compared to last year. Company’s outlook for 2012 has not changed: Net sales are expected to grow by 10-15% and operating profit excluding non-recurring items is expected to be EUR 23–33 million in 2012. Intelligence reporting by Global Intelligence Alliance Original article on Kauppalehti in Finnish language not available as a link

13.07.2012

Sweden: The CEO of Oriola-KD working in the company’s pharmacy

Eero Hautaniemi, the CEO of Oriola-KD, is working in Hapanranda Kronans Droghandel pharmacy just like any other pharmacy employee. The reason for working in a pharmacy is simple – Hautaniemi wanted to see and experience how the things work in practice. The Kronans Droghandel summer work campaign, which aims to facilitate the situation in Sweden with lack of pharmacists in summer, gave President and CEO of Oriola the opportunity to work in a pharmacy for a week.

Hautaniemi tells that in the years before the campaign, many small pharmacies had to be closed during the summer, because of lack of the staff. Now, however, the amount of temporarily closed pharmacies is much smaller.

Another reason for working in a pharmacy is the idea, that by understanding the work in a pharmacy better, the assistance from the headquarters to pharmacies will improve.

Intelligence reporting by Global Intelligence Alliance

Original article on Lounais-Lappi in Finnish language

02.07.2012

Sweden: Oriola-KD made a distribution agreement with 4 pharmacy chains

Swedish pharmaceutical wholesale company Oriola AB of Oriola-KD group has made an agreement on acquisition, warehousing and pharmacy distribution of OTC’s with Apoteksgruppen, DocMorris, Medstop and Vårdapoteket.

The cooperation will begin in the last quarter of 2012. It is assessed that the cost of OTC’s acquired under the agreement will be about SEK 1 200 million a year, starting 2013.

Intelligence reporting by Global Intelligence Alliance

Original article in Finnish language not available as a link

29.06.2012

Sweden: Kronans Droghandel reassures intention to keep rural pharmacies

The majority of pharmacies in rural areas will remain, according to Kronans Droghandel.

Andreas Rosenlund, CIO at Kronans Droghandel, discussed the issue with municipality this week.

“We respect the needs and want to provide a solution, but we must also take profitability into account,” explained Rosenlund.


Intelligence reporting by Global Intelligence Alliance

Original article on HelaHälsingland.se in Swedish language

04.06.2012

Sweden: Kronans Droghandel closes pharmacies during the summer due to staff shortage

Lack of staff forces Kronans Droghandel to keep two pharmacies closed during the summer in Dalarna region. “The fact is that not even employment agencies have pharmacists to offer,” says Magnus Hult, regional director of Kronans Droghandel.

State employment agency’s data hints that there are vacancies in all pharmacy chains, at least virtually. Currently, there are a dozen vacancies in Dalarna, half of which in Kronans Droghandel. Kronans Droghandel has also recently visited Södertälje, where pharmaceutical company AstraZeneca announced that 1200 employees are losing their jobs. Among those, there are around 100 pharmacists.

Intelligence reporting by Global Intelligence Alliance

Original article on DT in Swedish language

30.05.2012

Sweden: Kronans Droghandel supported diabetes patients in cooperation with Sanofi

During years 2010 and 2011 diabetes support projects for customers were organized in 15 Kronans Droghandel pharmacies,  primarily in western Sweden. The projects included six months counseling and support programs and were carried out in collaboration with Sanofi. Patients also received support from pharmacies via phone calls, SMS and emails. The initiative was appreciated by the participants. However, only a little over half of them completed the entire program.

“It is disappointing that there was such a big loss of participants. However, the program seems to have been appreciated by those who completed it,” says Bengt Ivar Fransson from Sanofi.

Intelligence reporting by Global Intelligence Alliance

Original article on Svensk Farmaci in Swedish language

25.05.2012

Sweden: Petition started in support of Kronans Droghandel pharmacy in Färgelanda

Two weeks ago Kronans Droghandel published lists of its pharmacies, which might be closed down. Färgelanda was among the pharmacies that are threatened with the closure.

After this information came out, local residents started a petition, in order to save the pharmacy from closure.“This is a way to arouse the public opinion and show that we want the pharmacy to stay,” says Mary Forsberg, the initiator of the petition. In just over a week already 500 people have signed the petition.

Intelligence reporting by Global Intelligence Alliance

Original article on Bohusläningen in Swedish language

25.05.2012

Sweden: Kronans Droghandel pharmacy in Torsby reopened

Kronans Droghandel pharmacy in Torsby has been criticized, for example, for the long queues and too few seats. The pharmacy was said to be closed down, however, the store has now been rebuilt.

“Now it will be better for customers, I hope that waiting times will be shorter,” says Birgitta Almroth, pharmacy manager at Kronans Droghandel in Torsby.

Intelligence reporting by Global Intelligence Alliance

Original article on Sveriges Radio in Swedish language

23.05.2012

Sweden: Kronans Droghandel plans to open a new pharmacy in Sunne

Soon the residents of Sunne might have two pharmacies to choose from. Kronans Droghandel plans to build a brand new pharmacy in this town.

“We believe that there is room for one more pharmacy in Sunne. There is a population base, and we are an attractive brand that people want to buy from,” says Andreas Rosenlund, information director at Kronans Droghandel.

Apoteket AB, which is already present in the locality, thus will have a competition. Eva Fernvall, brand manager at Apoteket AB, says that more than 13 000 inhabitants of Sunne is enough for two pharmacies.

Intelligence reporting by Global Intelligence Alliance

Original article on Värmlands Folkblad in Swedish language

16.05.2012

Sweden: Kronans Droghandel pharmacy in Kallinge will not be closed

Kallinge's residents can be assured that Kronans Droghandel's pharmacy will stay in their town. The pharmacy chain could be closing up to thirty pharmacies in rural areas in Sweden, but has not specified which areas will be affected.

“Our pharmacy in Kallinge is profitable and therefore not affected,” says the company's communications director Andreas Rosenlund.

Intelligence reporting by Global Intelligence Alliance

Original article on Sveriges Radio in Swedish language

10.05.2012

Sweden: Kronans Droghandel wants the state to help rural pharmacies

Kronans Droghandel is asking for a special state reimbursement for rural pharmacies. Kronans Droghandel has 33 pharmacies, which are classified as rural pharmacies. After spring of 2013 it is likely that many of these will be closed down due to low profitability.

“We hope to find a solution together with the government so that we can continue to have a good supply of medicinal products throughout the country,” says Andreas Rosenlund, Information Director at Kronans Droghandel.

Intelligence reporting by Global Intelligence Alliance

Original article on Mentoronline.se in Swedish language

10.05.2012

Sweden: Pharmacy chains choose Oriola AB as a common supplier

Apoteksgruppen, DocMorris, Medstop and Vårdapoteket will cooperate when purchasing OTC drugs and merchandize. The common supplier will be Oriola AB.

“Swedish pharmacy market is highly competitive. We do this primarily to streamline and review existing solutions, and now we have chosen to focus on purchasing,” says Peter Rose from DocMorris.

Cooperation was initiated in the fall, and after procurement during the spring, the chains entered into an agreement with Oriola AB on common wholesale and logistics services.

Through joint volumes and a basic assortment chains hope to lower logistics costs and purchase prices.

Intelligence reporting by Global Intelligence Alliance

Original article on LäkemedelsVärlden in Swedish language

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30.04.2012

Russia: Information agency Prime interviews Konstantin Minin

The interview of the General Director of pharmacy chains Stary Lekar and 03 Apteka, Konstantin Minin, mostly focused on questions concerning his recent appointment to the position of general director, newest tendencies and difficulties on the pharmaceutical market, as well as Oriole-KD’s future development strategy for its retail business in Russia.

K. Minin is a new comer to pharmaceutical business. Previously he worked mostly in FMCG and retail. According to him, if compared to traditional retail, pharmaceutical business is much more complex because of the regulation underlying it and therefore is much more difficult to carry out new marketing incentives. It is also required to take into account all the legislation, for example VED pricing system. Furthermore, the annual extension of VED list is one of the main problems in this sector. Mark-ups are so low, that it is necessary to find ways how to compensate the losses in sales. Company plans to launch its first private label product in two months. It is planned that the number of private label products will reach 40 by the end of this year.

Among other market problems, K. Minin also named tax legislation that negatively affected profitability of pharmacy chains, as well as price wars on the market, when everyone tends to move to the direction of discounters. Stary Lekar and 03 Apteka have no intention to become discount pharmacies, however prices might become lower if particular market circumstances occur.

Overall in 2011 company demonstrated positive dynamics. Future plans include opening of new pharmacies and closing of those outlet points that are unprofitable. During this year, the plan is to open 30 new pharmacies. Company also does not intend to combine both of its brands into one, at least not yet. New pharmacies are opened under either one brand or another, since their location, positioning and other features have significant differences. According to K. Minin, regional expansion of the pharmacy chains can also be considered.

K. Minin’s estimates of the future development of Russian pharmaceutical market are rather conservative. Competition on the market is hard, it is necessary to learn operating in these new circumstances. In general, the future vision of the company is confident and creative; aiming to develop a chain with a large number of pharmacies, with presence in different regions.

Intelligence reporting by Global Intelligence Alliance

Original articel on Prime in Russian language

26.04.2012

Russia: Interview of Konstantin Minin, General director of pharmacy chains Stary Lekar and 03 Apteka

Interview mainly focused on the issues of structural changes in the management and future development of Finnish pharmaceutical company Oriola-KD’s business in Russia.

Starting March 1, Konstantin Minin has become the general director of company’s two retail businesses - Stary Lekar and 03 Apteka. Previously he served as the Commercial director for these chains. According to K.Minin, the main reason for the changes in management was the task to significantly raise the effectiveness of company’s retail and wholesaling businesses in Russia. The wholesaling unit will be headed by H.Fogels, the general director of Oriola and the Vice-president of Oriola-KD Corporation.

As the main reforms in the company have already been done or are in their final stages, therefore no other structural changes in the company are expected. Currently, it is necessary to focus more on the operational effectiveness – the overall system and overall management principles, as well as implementation of decisions.
K.Minin informed that Oriola-KD is planning active development on the Russian market for its retail business. Possibilities of M&A deals are also looked into. The main requirement for potential candidate chains is a reasonable management system, as well as good development perspectives in addition to satisfying financial results. Regional development of company’s chains Stary Lekar and 03 Apteka is also possible.

In order to raise profitability, company plans to launch around 40 private label names in different categories. The first private label product is expected to be launched very soon. However, company does not intend to develop discounter pharmacies. According to K.Minin, discounters are not the most successful scenario for the market development, furthermore, from a commercial point of view, there are no discounters in Russia yet. Discounters have complete absence of known brands, however Russian pharmacies still do sell them, only for lower prices. In this case, further development of the market depends on how much the consumer is willing to pay for the quality.

Intelligence reporting by Global Intelligence Alliance

Original article on Pharmvestnik in Russian language

26.04.2012

Finland: Oriola-KD did not achieve expected results

Oriola-KD operating profit reached 5.4 MEUR in January-March, while in the same period last year it totalled 5 MEUR. According to the data gathered by Factset, analyst expected operating profit to comprise 6.6 MEUR and EPS of 0.03 EUR. EPS reached to 0.01 EUR, the same as last year.

Turnover in the first quarter of the year grew to 590.8 MEUR in comparison to the 530.1 MEUR of the first quarter last year.

President & CEO of Oriola-KD, Eero Hautaniemi said that operating profit benefited from higher operating profit in Swedish retail and wholesale and lower operating loss in the Russian retail and wholesale in comparison to last year.

The perspective for year 2012 has not changed: Oriola-KD expects turnover to increase by 10-15%; operating profit excluding one-off items is expected to be 23-33 MEUR in 2012.

Intelligence reporting by Global Intelligence Alliance

Original article on Arvopaperi by Katja Rapeli in Finnish language

17.04.2012

Russia: General Director of Stary Lekar and 03 Apteka raises discussion about the prospects of a discounter form

During the discussion on "War of retail forms on the local market"  at the XVII Conference - Pharmacy Chain of Russia, General Director of pharmacy chains Stary Lekar and 03 Apteka, Konstantin Minin, reminded that the main idea of a discounter form is the lack of any known brands. However, he believes that currently the Russian pharmaceutical retailers are not able to survive without brand names, especially when competing with manufacturers.

Konstantin Minin also added that the discounter form is first of all an ideology and not so much related with the prices as many believe. Current situation on the Russian pharmaceutical market has initiated a price war and opening of discount pharmacies is a defensive reaction, a simple attempt to save the business. When the competitors are gone, prices are raised again. Therefore, discounter form in its classic sense does not really exist in Russia yet.

General Director of Ave Group, Vladimir Kinzurashvili, expressed the same opinion. According to him, the discounter form can exist only as a defensive reaction towards increasing amount of competitors on the market. There is almost no possibility that discount pharmacies can develop into large chains.

Intelligence reporting by Global Intelligence Alliance

Original article on PharmaPractice in Russian language

03.04.2012

Oriola-KD pharmacies in Russia have no counterfeited medicines

Oriola-KD has around 270 pharmacies in Russia, mainly in the area of Moscow. Eero Hautaniemi, the President and CEO of Oriola KD, is not surprised by the information that pharmacies in Russia sell counterfeited medicines. According to him, the sales channels of Oriola-KD guarantee that the Group´s pharmacies in Russia have no counterfeited medicines.

Even though the company divides the Finnish pharmaceutical wholesale market roughly in half with Tamro, Oriola-KD is a small player in Russia, where there are total of about 50 000 pharmacies. In Russia medicines are also sold in kiosks. Oriola-KD has two pharmacy chains in Russia - Stary Lekar and 03. The Russian market is  two times larger for Oriola-KD than the Swedish and Finnish market combined. The Russian pharmaceutical market grows nearly 10% a year, while in Sweden and Finland the growth is only 1-3%.

In Russia bribes and extortion seem to be part of the market. According to Hautaniemi, Oriola-KD has been able to operate in peace.

Intelligence reporting by Global Intelligence Alliance

Original article on MTV3.fi in Finnish language

02.04.2012

Sweden: Kronans Droghandel opened a pharmacy in Svenstavik city centre

Pharmacy in Svenstavik has now returned to the city centre. Last week Kronans Droghandel, which had moved out from the local policlinic premises, began using its new premises, which previously hosted a post office.

“This is a great location. In addition to the fact that we now have larger shop premises, we will now also be open on Saturdays,” says pharmacy manager Åsa Eklund.

Intelligence reporting by Global Intelligence Alliance

Original article on Östersunds-Posten in Swedish language

02.04.2012

Sweden: State wants to oversee the newly introduced mini-health centres

A little more than a week has passed since the mini-health centres in Stockholm at Kronans Droghandel’s pharmacies were launched. Now the National Board of Health and Welfare considers if there is reason to oversee these activities, particularly because of the video link that is the only contact between patient and doctor.

When the nurse at these mini-health centres needs to contact the doctor it is done by telephone or video link. Thus, patients may receive prescriptions, which can be used at any pharmacy at any time.

The National Board of Health and Welfare is suspicious about the method of communication used. “The basic rule is that you must not expose someone's health status, the communication should be done over an encrypted connection and it must be ensured that only an authorized person can have access to patient data,” says the Board's lawyer Anders Alexandersson.

Intelligence reporting by Global Intelligence Alliance

Original article on Dagens Nyheter in Swedish language

27.03.2012

Sweden: Kronans Droghandel appeals the decision on loyalty points

For some time ago the National Board for Health and Welfare has forbidden Kronans Droghandel to let customers register member’s points when they buy medicines included in the reimbursement scheme.

Kronans Droghandel has now decided to pursue the matter forward and will ask the Supreme Administrative Court to determine if the chain should be allowed to register loyalty points, when members use their Medmera Visa card to pay for prescription drugs.

Intelligence reporting by Global Intelligence Alliance

Original article on LäkemedelsVärlden in Swedish language

 

19.03.2012

Sweden: More mini-clinics to be opened this year

A total of ten mini-clinics will be opened in Kronans Droghandel's pharmacies during this year. Two mini-clinics have already been opened in Stockholm.

“It makes it easier for many of our customers to receive a diagnosis and a prescription inside our pharmacies, and then to collect their drugs directly from us in case they wish,” says Andreas Rosenlund, Information Director of Kronans Droghandel.

Mini-clinics are operated by a separate company, Laastari Lähiklinikka, which already has several similar clinics in Finland. In Sweden, the company is called Minutkliniken. The goal of Minutkliniken is to get an agreement with the county councils.

The new mini-clinics have been criticized by the Swedish Medical Association. Ron Liebkind, the Chief Medic at Minutkliniken and a co-founder of the company, thinks that the criticism is unfounded. According to him, the company follows closely the national guidelines of patient safety.

Intelligence reporting by Global Intelligence Alliance

Original article on Dagens Medicin in Swedish language

16.03.2012

Sweden: Doctors criticize the new mini-clinics

Kronans Droghandel’s mini-clinics have been criticized by doctors. Thomas Flodin, who is the chairman of the Medical Association’s Code of Ethics and Responsibility Council, says in a newspaper Dagens Nyheter´s interview that "it sounds like you have to pay a lot for an inferior product. You do not get to see a doctor, but a doctor should assess something that is sent electronically”. Thomas Flodin says that a variety of diseases can hide behind the symptoms of a patient. These diseases might be missed in the examinations of the new mini-clinics.

Intelligence reporting by Global Intelligence Alliance

Original article on LäkemedelsVärlden in Swedish language

15.03.2012

Sweden: First mini-health centres opened in Stockholm

Kronans Droghandel pharmacies in Bromma and Kungsholmen, in Stockholm, opened the first mini-health centres inside their premises. A visit to the centre will cost 200 SEK. The clinics will operate without an appointment. In the centres it will be possible to handle for instance eye and ear infections, throat infections and other simple and common illnesses.

Intelligence reporting by Global Intelligence Alliance

Original article on Svensk Farmaci in Swedish language

13.03.2012

Sweden: Kronans Droghandel challenges the 24-hour rule with new web service

On Friday last week Kronans Droghandel launched a new web service. Through the company's website, customers can order their prescription medicines and then collect them at any pharmacy of the chain. In this new service the pharmacy chain promises ordered drugs within two days, not 24 hours, as the regulations say.

“Everyone who is active in the industry knows that the 24-hour rule works well on paper but hardly in practice. Here we need a change,” says Andreas Rosenlund, Information Director of Kronans Droghandel.

According to Kronans Droghandel, the main reason for disturbances regarding delivery times is the complexity of the generics system, which affects both pharmacies and their customers. "It is the most common reason for that people cannot get their drugs from the pharmacy”, says Andreas Rosenlund.

The pharmacy chain has calculated that every month between 50 000 and 200 000 customers in Sweden have problems with collecting their drugs due to the generics system.

Intelligence reporting by Global Intelligence Alliance

Original article on IT i vården in Swedish language

07.03.2012

Sweden: IT chief will have a summer job at a pharmacy

All employees at Kronans Droghandel headquarters will have a summer job at a pharmacy to get a better understanding of how everyday life at the pharmacies actually looks like. Stefan Ingelgård, Acting Head of IT, thinks it will be interesting and instructive.

“I think it is great for several reasons. Partly because our pharmacies have difficulties with staffing during summer. This is a very direct way for us to help the company to achieve our goals. Then it is good that we are working in the actual business. Ever since I started to work at Kronans Droghandel, the employees have occasionally gone out and worked in pharmacies,” says Stefan.

Intelligence reporting by Global Intelligence Alliance

Original article on IDG.se in Swedish language

22.02.2012

Sweden: Oriola AB shortens delivery times

Last year, Oriola AB was criticized regarding delivery times to the pharmacies. Now, a new mobility solution has been developed in collaboration with DB Schenker, which is to shorten the time from order to delivery. The new solution allows pharmacies to order goods in the afternoon and get them delivered during the morning the next day.

The new transport solution also means, according to Oriola AB, "significantly reduced environmental impact".

The new order and delivery times for pharmacies will be communicated to the pharmacy headquarters in the coming weeks.

Intelligence reporting by Global Intelligence Alliance

Original article on Svensk Farmaci in Swedish language

21.02.2012

Sweden: Kronans Droghandel’s discount system deemed illegal

Administrative Court of appeal in Stockholm has agreed to The Dental and Pharmaceutical Benefits Agency’s and Administrative Court’s line – Kronans Droghandel’s Med Mera card usage is deemed to violate drug regulations.

Purchase of drugs or other things at Kronans Droghandel using Med Mera Visa card gives points in Med Mera Bank, which in turn can give the customer a right to premium checks. It is not possible to use the premium checks when buying drugs though.

Administrative Court of appeal considers that a system of discounts connected to the purchase of drugs is violating a drug regulation and may not be used. Kronans Droghandel’s attorneys are now analyzing the judgment and considering an appeal.

Intelligence reporting by Global Intelligence Alliance

Original article on Svensk Farmaci in Swedish language

16.02.2012

Sweden: Kronans Droghandel headquarters´employees will work in pharmacies during the summer

All 70 employees at Kronans Droghandel’s headquarters will work two weeks at one of the chain´s pharmacies during the summer. Around ten of the employees, who have pharmacist degree, will work as medicine specialists dispatching prescriptions, the others will work with other tasks such as selling, picking goods, working at the counter etc.

With this initiative the chain wants to reduce staffing problems during the summer and develop the skills of the employees at headquarters.

Intelligence reporting by Global Intelligence Alliance

Original article on Svensk Farmaci in Swedish language

 

15.02.2012

Russia: Konstantin Minin appointed as Vice President at Oriola-KD

Commercial Director of pharmacy chains Stary Lekar and 03 Apteka, Konstantin Minin, has been appointed Vice President at Oriola-KD Russia, effective March 1, 2012, and will become a member of Oriola-KD`s Group Management Team. Mr.Minin will be responsible for pharmaceutical retail in Russia.

The current Vice President of Oriola-KD, who is heading the Russian business-units of the company, Henry Fogels will be responsible for the company’s wholesale business in Russia, effective next month. He will continue his work as a member of Oriola-KD`s Group Management Team as well.

The changes in the company are explained with the need to maximize focus on managing the business-units in Russia in the circumstances of increased competitiveness on the market.

Intelligence reporting by Global Intelligence Alliance

Original article on Pharmvestnik in Russian language