Pharmacies of Norway
Encyclopedia
Pharmacies of Norway are dominated by the three large companies Alliance Boots
, Apokjeden
and Norsk Medisinaldepot
. In total there are 606 pharmacies
, of which only 16 do not belong to the four dominant chains Apotek 1
, Vitusapotek
, Alliance Apotek
and Ditt Apotek
. 33 pharmacies are state owned as pharmaceutical trusts.
and 16 independent outlets. Of the 606 pharmacies, 480 are owned by the chains, 33 are owned by the pharmaceutical trusts, 47 are franchises
while 16 are independent
. Only 25 pharmacies, owned by 20 pharmacists, are not partially owned by the chains.
is a franchise concept owned by Norsk Medisinaldepot. All the hospital pharmacies are part of Ditt Apotek.
each own a pharmaceutical trust, organized as a health trust
, that manages hospital pharmacies. But some hospitals instead use commercial pharmacies that are part of the chains. All 33 hospital pharmacies belong to Ditt Apotek. Total revenue in 2006 was NOK
3.5 billion.
s could own a pharmacy, and would receive a monopoly
in their area. This concept was kept for more than 400 years.
The first dispansasion from this was given in 1856 when Rikshospitalet
was given permission to establish a hospital pharmacy owned by the state. In 1950 a general permission for the state and municipalities
to own hospital pharmacies was given. In 1957 the government created Norsk Medisinaldepot
(NMD) that was granted the sole rights for wholesale
of pharaceutics in Norway, replacing five private wholesalers. The phamacists on their hand owned the wholesaler of medical products, Apotekernes Fællesindkjøp
, that was acquired by NMD in 1992.
, at first owned by the pharmacists and later by Finnish Tamro
, and Alliance Unichem. NMD was at first partially privatized
in 1997, and then fully sold to Celesio
in 2001.
On March 1, 2001 a new law was passed giving the right for anyone to own a pharmacy, with the exception of medical doctors and the pharmaceutical industry. Norway went with this from having one of the most regulated to the least regulated pharmacy markets in Europe. This resulted in a huge consolidation
of the pharmacy market, with vertical integration
of the wholesalers and retailers. By 2007 84% of all pharmacies are wholly owned by the three wholesalers, and only 16 pharmacies remain outside the chains. At the same time the number of pharmacies has increased from about 400 to more than 600. The dominating new establishments are occurring as establishments close to established pharmacies, and is very little degree in areas without pharmacies.
Alliance Boots
Alliance Boots GmbH is a leading international, pharmacy-led health and beauty group. It has two core business activities - pharmacy-led health and beauty retailing, and pharmaceutical wholesaling and distribution - and has a presence in more than 25 countries...
, Apokjeden
Apokjeden
Apokjeden is a Norwegian pharmacy wholesaler and retailer owned by Finnish Tamro. It owns the largest pharmacy chain in Norway, Apotek 1. The company started a cooperation with a number of pharmacists who wanted a wholesaler independent of the state owned Norsk Medisinaldepot in 1995, when most...
and Norsk Medisinaldepot
Norsk Medisinaldepot
Norsk Medisinaldepot AS is a pharmaceutics and healthcare products wholesaler in Norway. It also operates the pharmacy chains Vitusapotek and the franchise chain Ditt Apotek. NMD is part of the Celesio group and has a total of 220 pharmacies in Norway, including the 31 hospital pharmacies...
. In total there are 606 pharmacies
Pharmacy
Pharmacy is the health profession that links the health sciences with the chemical sciences and it is charged with ensuring the safe and effective use of pharmaceutical drugs...
, of which only 16 do not belong to the four dominant chains Apotek 1
Apotek 1
Apotek 1 is the largest pharmacy chain in Norway, owned by Apokjeden with more than 240 outlets in 2009. The chain was first established in 1999, but has since the deregulation in 2001 expanded massively and now has a 40% market share....
, Vitusapotek
Vitusapotek
Vitusapotek is a chain of 140 pharmacies in Norway owned and run by Norsk Medisinaldepot, a subsidiary of the German company Celesio AG. The chain is based in Oslo, and is the second largest in Norway, after Apotek1....
, Alliance Apotek
Alliance Apotek
Alliance Apotek is a pharmacy chain in Norway owned by Alliance Boots that operates 140 outlets throughout the country. The chain was established in 2001 after the deregulation of the pharmacy market in Norway. Alliance is the smallest of the three pharmacy wholesalers in Norway.Today the majority...
and Ditt Apotek
Ditt Apotek
Ditt Apotek is a chain of 80 pharmacies owned and run by independent pharmacists on franchise from Norsk Medisinaldepot, a subsidiary of Celesio. The chain is the fourth largest, and thus smallest, in Norway. The chain was established in 2001 after the deregulation of the pharmacy market in Norway...
. 33 pharmacies are state owned as pharmaceutical trusts.
Structure
After the Pharmacy Act then was enforced on March 1, 2001, anyone could own a pharmacy. This has resulted in three corporate chains as well as one for independent stores, including 33 hospital pharmaciesHospital pharmacy
A hospital pharmacy is concerned with pharmacy service to all types of hospital and differs considerably from a community pharmacy.Some pharmacists in hospital pharmacies may have more complex clinical medication management issues whereas pharmacists in community pharmacies often have more complex...
and 16 independent outlets. Of the 606 pharmacies, 480 are owned by the chains, 33 are owned by the pharmaceutical trusts, 47 are franchises
Franchising
Franchising is the practice of using another firm's successful business model. The word 'franchise' is of anglo-French derivation - from franc- meaning free, and is used both as a noun and as a verb....
while 16 are independent
Independent pharmacy
An independent pharmacy is a retail pharmacy that is not directly affiliated with any chain of pharmacies and is not owned by a publicly traded company. Independent pharmacies are pharmacist-owned, privately-held businesses in varying practice settings...
. Only 25 pharmacies, owned by 20 pharmacists, are not partially owned by the chains.
Chains
The three largest chains are vertical owned by the wholesalers while Ditt ApotekDitt Apotek
Ditt Apotek is a chain of 80 pharmacies owned and run by independent pharmacists on franchise from Norsk Medisinaldepot, a subsidiary of Celesio. The chain is the fourth largest, and thus smallest, in Norway. The chain was established in 2001 after the deregulation of the pharmacy market in Norway...
is a franchise concept owned by Norsk Medisinaldepot. All the hospital pharmacies are part of Ditt Apotek.
- Apotek 1Apotek 1Apotek 1 is the largest pharmacy chain in Norway, owned by Apokjeden with more than 240 outlets in 2009. The chain was first established in 1999, but has since the deregulation in 2001 expanded massively and now has a 40% market share....
(owned by Apokjeden, part of Tamro): 228 outlets - VitusapotekVitusapotekVitusapotek is a chain of 140 pharmacies in Norway owned and run by Norsk Medisinaldepot, a subsidiary of the German company Celesio AG. The chain is based in Oslo, and is the second largest in Norway, after Apotek1....
(owned by Norsk Medisinaldepot, part of Celesio: 147 outlets - Alliance ApotekAlliance ApotekAlliance Apotek is a pharmacy chain in Norway owned by Alliance Boots that operates 140 outlets throughout the country. The chain was established in 2001 after the deregulation of the pharmacy market in Norway. Alliance is the smallest of the three pharmacy wholesalers in Norway.Today the majority...
(owned by Alliance Boots): 134 outlets - Ditt ApotekDitt ApotekDitt Apotek is a chain of 80 pharmacies owned and run by independent pharmacists on franchise from Norsk Medisinaldepot, a subsidiary of Celesio. The chain is the fourth largest, and thus smallest, in Norway. The chain was established in 2001 after the deregulation of the pharmacy market in Norway...
(independents): 80 outlets - Independent: 16 outlets
Hospital pharmacies
The four Regional Health AuthoritiesRegional Health Authority
A regional health authority is a state enterprise responsible for specialist healthcare in one of four regions of Norway. Responsibilities of the RHFs include patient treamtment, education of medical staff, research and training of patients and relatives...
each own a pharmaceutical trust, organized as a health trust
Health Trust
Health trust or HF is a health enterprise owned by one of the four regional health authority in Norway, with responsibility for performing a geographic and/or specialist activities of operations on behalf of the regional health authority. There are 43 HFs in Norway, each led by a board of...
, that manages hospital pharmacies. But some hospitals instead use commercial pharmacies that are part of the chains. All 33 hospital pharmacies belong to Ditt Apotek. Total revenue in 2006 was NOK
Norwegian krone
The krone is the currency of Norway and its dependent territories. The plural form is kroner . It is subdivided into 100 øre. The ISO 4217 code is NOK, although the common local abbreviation is kr. The name translates into English as "crown"...
3.5 billion.
- Southern and Eastern Norway Pharmaceutical TrustSouthern and Eastern Norway Pharmaceutical TrustSouthern and Eastern Norway Pharmaceutical Trust is a health trust owned by Southern and Eastern Norway Regional Health Authority that operates nineteen hospital pharmacies...
: 19 outlets - Western Norway Pharmaceutical TrustWestern Norway Pharmaceutical TrustWestern Norway Pharmaceutical Trust is a health trust owned by Western Norway Regional Health Authority that operates four hospital pharmacies at Haukeland University Hospital in Bergen, Stavanger Hospital, Haugesund Hospital and Førde Hospital. The pharmacies are part of the Ditt Apotek chain and...
: 6 outlets - Central Norway Pharmaceutical TrustCentral Norway Pharmaceutical TrustCentral Norway Pharmaceutical Trust is a health trust owned by Central Norway Regional Health Authority that operates four hospital pharmacies at St. Olavs Hospital in Trondheim, Kristiansund Hospital, Molde Hospital and Ålesund Hospital. The pharmacies are part of the Ditt Apotek chain and use...
: 4 outlets - Northern Norway Pharmaceutical TrustNorthern Norway Pharmaceutical TrustHospital Pharmacy of North Norway Trust is a health trust owned by Northern Norway Regional Health Authority that operates six hospital pharmacies...
: 4 outlets
History
The first pharmacy in Norway was Svaneapoteket in Bergen in 1595, followed by Svaneapoteket in Oslo in 1628, Hygiea in Stavagner in 1650, elefantapoteket in Kristiansand in 1651 and Løveapoteket in Trondheim in 1661. The first pharmacies received royal permit when they were established, and in 1600 it was decided that only private individuals trained as pharmacistPharmacist
Pharmacists are allied health professionals who practice in pharmacy, the field of health sciences focusing on safe and effective medication use...
s could own a pharmacy, and would receive a monopoly
Monopoly
A monopoly exists when a specific person or enterprise is the only supplier of a particular commodity...
in their area. This concept was kept for more than 400 years.
The first dispansasion from this was given in 1856 when Rikshospitalet
Rikshospitalet
Rikshospitalet is located in Oslo, Norway. From January 1, 2009, the hospital is part of Oslo University Hospital....
was given permission to establish a hospital pharmacy owned by the state. In 1950 a general permission for the state and municipalities
Municipalities of Norway
Norway is divided into 19 administrative regions, called counties , and 430 municipalities...
to own hospital pharmacies was given. In 1957 the government created Norsk Medisinaldepot
Norsk Medisinaldepot
Norsk Medisinaldepot AS is a pharmaceutics and healthcare products wholesaler in Norway. It also operates the pharmacy chains Vitusapotek and the franchise chain Ditt Apotek. NMD is part of the Celesio group and has a total of 220 pharmacies in Norway, including the 31 hospital pharmacies...
(NMD) that was granted the sole rights for wholesale
Wholesale
Wholesaling, jobbing, or distributing is defined as the sale of goods or merchandise to retailers, to industrial, commercial, institutional, or other professional business users, or to other wholesalers and related subordinated services...
of pharaceutics in Norway, replacing five private wholesalers. The phamacists on their hand owned the wholesaler of medical products, Apotekernes Fællesindkjøp
Apotekernes Fællesindkjøp
Apotekernes Fællesindkjøp was a Norwegian wholesaler company owned by the pharmacies that provided them with healthcare products. The company was bought in 1992 by the state owned Norsk Medisinaldepot who at the time was the sole wholesaler of pharmaceuticals in the country....
, that was acquired by NMD in 1992.
Deregulation
The first deregulation was of the wholesalers in 1995. This resulted in two competitors of NMD entering the country, ApokjedenApokjeden
Apokjeden is a Norwegian pharmacy wholesaler and retailer owned by Finnish Tamro. It owns the largest pharmacy chain in Norway, Apotek 1. The company started a cooperation with a number of pharmacists who wanted a wholesaler independent of the state owned Norsk Medisinaldepot in 1995, when most...
, at first owned by the pharmacists and later by Finnish Tamro
Tamro
Tamro is a Finnish wholesaler and retailer of pharmaceuticals and is a subsidiary of the Phoenix Group. It operates wholesale throughout Northern Europe as well as retailing in Norway, Estonia, Latvia and Lithuania. In Norway it owns Apokjeden which in turn owns the chain Apotek 1, the largest in...
, and Alliance Unichem. NMD was at first partially privatized
Privatization
Privatization is the incidence or process of transferring ownership of a business, enterprise, agency or public service from the public sector to the private sector or to private non-profit organizations...
in 1997, and then fully sold to Celesio
Celesio
Celesio AG is a German healthcare and pharmaceutical company, represented in 14 countries, with a revenue of 21.5 billion euro and more than 46,000 employees...
in 2001.
On March 1, 2001 a new law was passed giving the right for anyone to own a pharmacy, with the exception of medical doctors and the pharmaceutical industry. Norway went with this from having one of the most regulated to the least regulated pharmacy markets in Europe. This resulted in a huge consolidation
Consolidation (business)
Consolidation or amalgamation is the act of merging many things into one. In business, it often refers to the mergers and acquisitions of many smaller companies into much larger ones. In the context of financial accounting, consolidation refers to the aggregation of financial statements of a group...
of the pharmacy market, with vertical integration
Vertical integration
In microeconomics and management, the term vertical integration describes a style of management control. Vertically integrated companies in a supply chain are united through a common owner. Usually each member of the supply chain produces a different product or service, and the products combine to...
of the wholesalers and retailers. By 2007 84% of all pharmacies are wholly owned by the three wholesalers, and only 16 pharmacies remain outside the chains. At the same time the number of pharmacies has increased from about 400 to more than 600. The dominating new establishments are occurring as establishments close to established pharmacies, and is very little degree in areas without pharmacies.