Distribution Landscape in Denmark
In Denmark, pharmacies possess exclusive rights to distribute prescription drugs to consumers. Additionally, a significant portion of over-the-counter products is exclusively available through private pharmacies.
The vast majority, precisely 99%, of all pharmaceuticals are distributed by the two comprehensive wholesalers in Denmark to private pharmacies—Nomeco Wholesale and Tjellesen Max Jenne (TMJ). As a pharmaceutical supplier, establishing a partnership agreement with both Nomeco Wholesale and TMJ is crucial if you aspire to make your products accessible in all pharmacies across Denmark.
Primary Sector Dynamics
Each private pharmacy operates under the supervision of a pharmacist granted permission by the state. The number of private pharmacies and the margin they earn from pharmaceutical sales are regulated by Danish authorities. The purchase prices (AIP) for pharmacy-only drugs are directly determined by the manufacturing or importing companies (suppliers), who can report price changes every 14 days in "The Price List." Pharmacies are obligated to consistently offer consumers the most cost-effective preparation.
The primary sector in Denmark functions as a multi-channel system, where products requested by pharmacies are supplied by the two wholesalers. Approximately two-thirds of private pharmacies source their products from Nomeco Wholesale, with the remainder relying on Tjellesen Max Jenne (TMJ). These two wholesalers play a pivotal role in the daily workflow and administration of pharmacies. Further details about Nomeco's collaboration with private pharmacies can be found below.
In addition to pharmacy-only drugs, Nomeco also distributes over-the-counter products and veterinary pharmaceuticals as requested by pharmacies.
Functionality of the Price List
All pharmacies in Denmark retail pharmacy-only drugs to consumers at a standardized price, known as the pharmacy's retail price or AUP (Apotekets Udsalgspris). The fixed prices specifically pertain to pharmaceuticals sold exclusively through pharmacies and do not encompass products available in other retail outlets, such as over-the-counter drugs, herbal remedies, etc.
The pricing for pharmacy-only drugs is established by the companies responsible for manufacturing or importing the pharmaceuticals (suppliers). These suppliers have the option to submit proposed price changes in the tariff list at the Danish Medicines Agency every two weeks through the DKMAnet platform. Subsequently, the approved prices will be published on www.medicinpriser.dk.
Goods Flow in the Tariff System
The diagram illustrates the flow of goods within the tariff system. It is of utmost importance that Nomeco receives ordered products no later than Thursday preceding a new tender period. This ensures timely availability of goods at respective pharmacies at the commencement of the tender period. If Nomeco has not received the specified goods, an "expected delivery failure" must be reported to the Danish Medicines Agency by Friday at 11:30 am.
In the event of a reported "delivery failure" for A-category products, the Danish Medicines Agency will allocate subsidies based on the next most economical price.
Following the submission of prices, the Danish Medicines Agency categorizes products within the same substitution group using an ABC classification. Products with an A categorization represent the most competitively priced items on which the Danish Medicines Agency calculates subsidies. These A-categorized products are also the ones that private pharmacies are obligated to offer consumers.
The tariffs impact on returning- and crediting, is much more widespread in Denmark then what is usually seen in other markets.
Secondary Sector Overview
Hospital pharmacies in Denmark fall under the administration of the five regions and receive financial backing from the State. Similar to private pharmacies, hospital pharmacies procure pharmaceuticals at the AIP (the pharmarcy's purchase price), a price set by the supplier. Notably, the five regions collectively operate a centralized procurement organization known as Amgros. Amgros, acting on behalf of the five regions, engages in a tender process with suppliers, ultimately signing agreements at discounted rates.