Value-Added Services
Pharma Distributors: The Vital Link Between Manufacturers and Patients
Barbara Matijašič
JOURNALIST AT THE ADRIATIC
The pharmaceutical industry has a significant impact on how people obtain the prescription and over-the-counter medical products, dietary supplements and medical devices. If we simplify, the process of ensuring that medications are delivered to patients begins with R&D manufacturing, followed by distribution, consumption and waste management – these steps are intertwined and can’t work without proper storage, distribution and value-added services such as focused marketing.
In our region, pharma distributors provide about 55 million people with safe and rapid access to medicines and medical services. By itself, this places them at the heart of health systems. They act as the unseen but crucial link between pharmaceutical manufacturers, hospitals, pharmacies and last but not least – the patients. As popular in other industries as well, also pharma strategists classify countries into clusters, with clusters serving as the focal point for searching for the best local solution provider.
A broader economic situation namely influences some markets today in a way to be more favourable to pharmaceutical manufacturers than others. In recent years, an increasing number of pharmaceutical companies have opted for the business model of external distributers – as opening of a representative office sometimes is not justified by commercial interests. This transition of business is becoming a popular model in our region as well. It, of course, comes with opportunities as well as challenges and we talked about these with Žiga Hieng, the Chairman of the Board of Salus Group, and Gregor Žgur, the General Manager CARSO Pharm as both companies enjoy a strong regional presence and extensive experience in the territory.
The Salus Group is present in Central and East Europe (CEE) and is at the moment operating in 13 different countries, among them in Slovenia, Croatia, North Macedonia, Serbia and Montenegro, as well as in Romania, Bulgaria and in the Baltics. Salus Group services includes regulatory and pharmacovigilance, market access, distribution, marketing and sales, medical support, and distribution, while CARSO pharm specialized in Rx, OTC and MD representations is constantly expanding their business and services offered in the CEE region. From an organizational perspective, CARSO pharm is structured into three separate sectors each of them is supporting specific lines of business pharmaceuticals, medical devices, OTC and food supplements to foster best client support. “In Salus Group, we conduct business both in EU and non-EU countries. Regulations in EU countries are very similar in all the service areas we provide, and local differences from one EU country to another are very small,” comments Žiga Hieng, the Chairman of the Board of Salus Group when asked how individual markets differ from each other. “On the other hand, we enjoy a strong presence in Serbia, North Macedonia, Montenegro, Bosnia and Herzegovina, Albania and Kosovo. These non-EU countries have different laws and regulations related to distribution and commercialization services. Our success in these markets is directly related to the deep local knowledge provided by our experienced domestic colleagues, and to our inclusive and connected culture, which can transfer local knowledge to regional colleagues and vice versa.” “Our strong suit is that we operate by the principles of major international companies and provide comprehensive services in Central and Eastern Europe through its internal policies. We act as outstretched hands where Partners can choose a complete representative or only a partial representation of the product depending on their needs,” explains Gregor Žgur, the General Manager CARSO Pharm.
“In Salus Group, we conduct business both in EU and non-EU countries. Regulations in EU countries are very similar in all the service areas we provide, and local differences from one EU country to another are very small,” comments Žiga Hieng, the Chairman of the Board of Salus Group.
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“COVID has had a significant impact on people’s overall access to health care and well-being, so our responsibility is also to introduce solutions that help close the gap between current health care and ideal one,” stresses Gregor Žgur, the General Manager CARSO Pharm.
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THE ADRIATIC
This article was originally published in The Adriatic Journal: Strategic Foresight 2022
If you want a copy, please contact us at info@adriaticjournal.com.