A big part of my job is working on expanding this pharmaceutical business to the Swedish market. But that’s easier said than done, let me tell you! See, and I’m sure at least the Swedes know about this, the Swedish pharmacy market is one big hole of gooey yucky black chaos. At least from where I’m sitting. Sure the end consumer might save a couple of bucks, but that’s a big maybe. So what’s going on? Well first of all. More than 2/3 of the (up till now) public pharmacies will be sold. To chains, investors or whoever would like to open a store and thinks “Hmm, maybe a pharmacy will be my thing. I’ll go try that”. So far, not a horrible idea. Except the fact that all pharmacy owners need to be licensed by Läkemedelsverket. Taking them forever, because they don’t even know what requirements are needed to run a nonApoteket AB pharmacy! A sidebonus to all this: Läkemedelsverket is also in charge of approving all product licenses (read: we can’t sell our products on the Swedish market till they approve it) and that’s cool. But they’re all over there so bloody busy that they have no time for approving our small products! We’ve been put on ice!
But ok, I can be patient as a rock when I have to. So moving on to the next obstacle – the TLV (the guys that decide what products should receive medical benefits upon sale). Right, their job is rather simple – design a new substitution system. Before, when Apoteket AB was calling the shots, it was all good. Now it’ll be mayhem in a candy box. So what did they come up with? Oh you’re gonna love this!
Now they divided the market into segments, prescription and overthecounter, human and veterinary, original (and parallel import) and generic meds. So far so good. Now of the main goals of ours is the vet business. There’s very limited PI on vet meds in Sweden – good for us! But. But but but! Had this been a year ago we would just report our prices to Apoteket AB and the orders would start ticking in. Now? Well I’m glad you asked! Now we have to go out and pick up agreements with each individual pharmacy/pharmacy chain. That’s over 600 pharmacies! Excellent, because we’re totally equipped for that. But it’s not that bad, could be worse. Sure it could, read on and weep.
So what’s next? Well, let’s take a look the generics. Doesn’t really have anything to do with us, but someone really got a good idea here. First, off the bat. As soon as the patent from the original provider expires, the TLV steps in and reduces all prices, original and generic by 65%. Boom! But they’re betting pretty heavily on this to heave home some cash, so they decided they needed to optimize the sales. Apparently pharmacies had a nasty habit of not selling the cheapest substitute. Well that needs to be fixed! So now they’re dividing generics into two: price below 300 SEK and price above 300 SEK. Bit of info: all pharmaceutical products change prices once a month. Suppliers bid in with their new monthly prices, these are approved by the TLV and put into effect by the 1st of the next month. So all products that sell for less than 300 SEK are allowed sale the first 5 days of the month, for pharmacies to clear their storage area. After day 5 they can either be sold for no pharmacyprofit or all but the cheapest generic must be sent back to the wholesaler. Excellent! So much for the end consumer having options! Oh but I’m allergic to something in that generic – too bad, this is all you get! So much for increased service.
Now to the good stuff, original and parallel imported products: The TLV decided the best way to increase competition between pharmacies is to allow them to negotiate their own prices. Pharmacies don’t even have to store PI anymore, it all depends on what sort of deals they reach with the distributors. On the other hand, pharmacies will be able to earn a whole 10 SEK PER SOLD ITEM. The TLV hope this will be enough motivation to sell PIitems. In return they’re hoping that the individual pharmacy is able to negotiate prices low enough to still let the end product be cheaper than it used to be. I’m not that optimistic. There won’t be any common pricelist either meaning the poor Swedish schmucks need to do their homework properly to find out which pharmacy has gotten the best deal on which product. BRILLIANT! Now that’s what I call competition… But tbh isn’t it a lot more hassle than it’s worth?
Either way, I got some steam out, I feel better now!