The online pharmacy as a mediator The online pharmacy as a mediator between consumer, pharma and payer

Klaus Gritschneder

• Founded in 2001

• 2009: more than 225 member of staff, thereof more than 50 pharmaceutical employees

• 5.000 patients per day

• Recognized partner of health insurances

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Company profile Europa Apotheek Venlo

INSEAD Healthcare Alumni Summit 2009 - 08 October 2009, Basel, Switzerland

• Recognized partner of health insurances

• Full product range

• Thereof approx. 10.000 products in stock

• Just-in-time supply every 2 hours

• Approx. 300.000 unit packages per month

• Aside from ordering via internet, phone, fax or mail it is possible to order from one of the 1.000 PharmaPunkte at the dm-chemist´s shops

• One of the largest health care companies

in the US

• US leading pharmacy benefit manager (PBM)

• own clinical research institute

world‘s largest mail-order pharmacy

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Company profile Medco Health Solutions

INSEAD Healthcare Alumni Summit 2009 - 08 October 2009, Basel, Switzerland

• world‘s largest mail-order pharmacy

• 20.000 employees, among them more than 2.400 pharmacist and more than 500 nurses

• 60 millionen patients

• Turnover in 2008: approx. 50 billion US$

• More than 100 millionen prescriptions are supplied from the mail-order pharmacies p.a.

Reality today:

• Large mail-order pharmacies serve the German market

• Development of new concept (co-operations)

• New players enter the market (chemist‘s shops, retailer)

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Old pharmacy – New pharmacyStructural change after 800 years?

INSEAD Healthcare Alumni Summit 2009 - 08 October 2009, Basel, Switzerland

• New players enter the market (chemist‘s shops, retailer)

Do these developments imply a paradigm shift?

Did the market change already?

In respect to common/ simple illness‘ the view of the pharmacistis often seen to be an additional source to the physicians opinion

But:

• The patients liberate themselves from

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Market research by Rheingold instituteConclusion

INSEAD Healthcare Alumni Summit 2009 - 08 October 2009, Basel, Switzerland

• The patients liberate themselves from

physicians and pharmacists

• Liberation from dependency and paternalism

• Lack of discretion and the missing of a retreat possibility in thepharmacies are critizised by patients (especially in rural areas)

• The pricing policy of pharmacies is subject to severe criticism

Paradigm shift from the „traditional pharmacy“ to a modern distribution scheme

• Customer experience with the new system is missing –therefore partly insecurity at the client‘s end

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Market research by Rheingold instituteConclusion

INSEAD Healthcare Alumni Summit 2009 - 08 October 2009, Basel, Switzerland

therefore partly insecurity at the client‘s end

• Alteration is generally acclaimed and perceived as past due

• Most important: customer/ patient feels being taken seriouslyand wants to benefit from the price advantages

patient

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mail order pharmacy offers

• more service to patients

- saving money

- secure & convenient delivery

- drug safety & specialty services

Mediator mail order pharmacy

INSEAD Healthcare Alumni Summit 2009 - 08 October 2009, Basel, Switzerland

pharmacy payer

politics

pharma

- drug safety & specialty services

• feedback to pharma

- in case of recalls for drugs

- requests from patients

• cost reduction to payers

- additional rebates

- over all cost reduction

• a guarantee about areawide,

full assorted supply to politics

Thank you for your attention!