PHARMACEUTICAL MARKET
Brazil - the window shop of the world

By Célia Piovan

After two years closely researching the Brazilian pharmaceutical market as well as the political environment and the business scenario, Celesio consolidated its business by focusing on such data. The president of the management board of the company, the German Fritz Oesterle, has commented during an interview that they are entirely satisfied by having found in Panarello family and in Panpharma company the perfect partner in Brazil. Oesterle stated that Panpharma capital increase is an essential condition for both to keep on being successful in Brazil. Such factors, together with Celesio international experience in wholesale market and the ideal market conditions, as well as highly qualified and motivated professionals at Panpharma, make up the ideal basis for the company's growth.

An important acquisition
The result of two years of negotiations between these two giants ended up with the acquisition of 51% of Panpharma Group shares, owner of Panarello, American Farma and Sudeste Farma medicines wholesalers, and leader of medicines wholesale market in Brazil with 17% market share and sixteen wholesale centers all over the country, the biggest coverage nationwide. The business value (not officially disclosed) is estimated around US$3 bi. The resources, according to official communication, will be applied in the capital and in the expansion of Panpharma Group infrastructure.

Celesio Group numbers
One of the leading companies in the international market, the group is located in twenty-eight countries and employs nearly forty-five thousand contributors within three segments: Patient and Consumer Solutions, Pharmacy Solutions and Manufacturer Solutions. Over two thousand and three hundred drugstores belonging to Patient and Consumer Solutions segment, daily serve over five hundred and fifty thousand customers in seven countries. In wholesale market, in the Pharmacy Solutions segment, around a hundred and twenty branches provide products for over thirty five thousand drugstores in twelve countries all over Europe, with more than eighty thousand items distributed. The Manufacturer Solutions segment enables solutions for wholesalers and logistics to pharmaceutical products manufacturers by offering support in sales and marketing. In 2008, it generated a revenue of "21,8 billion.

Expectancies
The business was designed to promote shared management by enjoying what each company has to offer. The International expertise of the German group and the close relationship that Panpharma keeps with customers and the pharmaceutical industry are some of the main features. Besides, Celesio coming into the Brazilian medicine wholesale market is also part of the expectancies when it comes to reduce the dependence of the British market where it obtains almost 50% of the operational profit. The business is the first expansion of Celesio outside Europe, which aims at expanding their activities in emerging countries markets, so that's the interest for Brazil.

Composition
Although it might lose the control of the company, Panarello family will keep on leading its management. Alexandre Panarello, general director of the Group, will be the president of the company, having Hermíno Tavares as a partner in this co-management, a Portuguese professional who has been for 16 years in charge of Celesio operations in Europe.