Value-Added Services
 

Pharma Distributors: The Vital Link Between Manufacturers and Patients


February 2022 Business

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.

Žiga Hieng (left) , the Chairman of the Board of Salus Group, and Gregor Žgur (right), the General Manager CARSO Pharm. Foto: Aleš Beno

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.

The Future Emphasizes The Rise of Breakthrough Medical Solutions and Value-Added Services

The business environment in the region has always been unpredictable and challenging, but in the past two years, COVID has doubled the meanings of the acronym VUCA environment. Therefore, when doing business with partners, pharma distributors need to go beyond traditional methods. That means that they need to show great flexibility in any provided product or service to partners and demonstrate the benefits partners will gain. “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 future position of pharma distributors will likely be influenced by several factors, including the continuous rise of breakthrough medical solutions and end-to-end services. Indeed, what is crucial in this perspective is proactivity. The added value lies in the possibility of the interconnectivity of local knowledge with the 360 approaches. “If a product requires regulatory or medical support, a team of knowledgeable and dedicated employees stands ready to help. When it comes to market access, we assist with market research, pricing formulations, price submissions, reimbursement dossiers, and payor negotiations. Marketing and sales operations are focused on ensuring that partner’s products are accessible and visible, and that people are informed about all as- pects.” comments Žgur.

“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.

The Main Challenges for 2022

The pharmaceutical industry is considered to be one of the more crisis-resistant industries. Constant innovation, the overflow of new knowledge through external partnerships, as well as medical and technological discoveries, are only a few of the major trends. “The time required for new medicines to be introduced in our region has never been short, but due to globally disrupted supply chains, we can expect this challenge to be considerably greater in 2022. Pharma distributors must help our partners with perfect market insights, support, and value. I’m happy to say that if an activity or a venture can provide added value to patients and our partners, we are ready to join.” believes Gregor Žgur.

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.