The pharmacies have exclusive rights in Denmark to sell prescription drugs to consumers. Furthermore, many over the counter products can also only be purchased at private pharmacies.
99 % of all pharmaceuticals are distributed by the two full range wholesalers in Denmark to private pharmacies, Nomeco wholesale and Tjellesen Max Jenne (TMJ). Therefore, if you as a supplier of pharmaceuticals would like your products to be available in all the pharmacies in Denmark, it is important to enter into a partnership agreement with both Nomeco wholesale and TMJ.
Primary sector
Each private pharmacy is operated by a pharmacist that has been granted permission by the state to operate the pharmacy(ies) concerned. The number of private pharmacies, and the margin they receive in connection with the sale of pharmaceuticals, is regulated by the Danish authorities. The pharmacy's purchase prices (AIP) on pharmacy-only drugs are determined directly by the companies that manufacture or import the pharmaceuticals (suppliers). Suppliers can report price changes every 14 days in "The Price List", and the pharmacy is obligated to always offer the consumer the cheapest preparation.
The primary sector in Denmark functions as a multi-channel system, where the products requested by the pharmacies are sold by the two wholesalers. 2/3 of the private pharmacies receive their products from Nomeco wholesale, while the rest receive them from Tjellesen Max Jenne (TMJ). The two wholesalers play a vital role in the daily workflow and administration at the pharmacies. Read more about Nomeco's partnership with the private pharmacies.
Aside from the pharmacy-only drugs, Nomeco also distributes over the counter products and veterinary pharmaceuticals, requested by the pharmacies.
How the price list works
All pharmacies in Denmark sell pharmacy-only drugs to consumers at the same price (pharmacy's retail price, AUP). The fixed prices do not include pharmaceuticals that may be sold in other retail stores, such as over the counter drugs, herbal remedies, etc.
The price of pharmacy-only drugs is set by the companies, that manufacture or import the pharmaceuticals (suppliers). The suppliers have the option to submit price changes in the tariff list at the Danish Medicines Agency every two weeks via DKMAnet. The prices will be published on www.medicinpriser.dk.
The figure shows the flow of goods in the tariff system. It is very important that Nomeco receives the ordered products latest Thursday before a new tender period, to ensure that the goods are available at the respective pharmacies at the start of the tender period. Nomeco must report an "expected delivery failure" to the Danish Medicines Agency, no later than Friday at 11.30 am, if the Nomeco wholesaler has not yet received the goods in question. If a "delivery failure" has been reported on A products, the Danish Medicines Agency will award subsidies for the next cheapest price instead.
Based on the reported prices, the Danish Medicines Agency allocates products within the same substitution group an ABC categorisation. A pack is placed in the same replacement group, if it contains the same active substance, in the same amount and used in the same way (such as tablets and capsules for ingestion through the mouth). Items with A categorisation are the cheapest prices that the Danish Medicines Agency calculates subsidies on the basis of and are also the products that the private pharmacy must offer the consumer.
The tariffs impact on returning- and crediting, is much more widespread in Denmark then what is usually seen in other markets.
Secondary sector
The Danish hospital pharmacies are administered by the five regions in Denmark and are financed by the State. The hospital pharmacies purchase the pharmaceuticals, just like private pharmacies, at AIP, which have been set by the supplier. The five regions do, however, have a common purchase organisation, Amgros, who on behalf of the five regions, through a tender with suppliers, sign agreements with the respective suppliers at a reduced price.