PORTUGAL
FECOFAR- Federation of Pharmaceutical Distribution Cooperatives
FECOFAR-

Market and Organization Description
Country Legislative Framework
Description of the Sector (Facts&Figures)
SWOT analysis of the Cooperative movement in the
Pharmacy Sector
Priorities and Strategies

10 Million Habitants
2 800 Pharmacies
698 Para-Pharmacies
7 Full-Line Wholesalers
Full-
(2008)-
Market Value (2008)- 2.822 M. €
Generics Market(2008) - 516 M. €

PLURAL
Concentration among Cooperatives
FECOFAR Market Share
Plural
COOPROFAR 9,16% Farbeira, Cofarbel and
COFANOR 8,32% Farcentro merged in 2008
UDIFAR 18,06%
TOTAL 35,54%
UDIFAR
Codifar and União
Farmacêuticos de Portugal
merged in 2009

2.900 10%
Milhões
9,4% 2.822
9%
2.794
2.800
8%
2.700 7%
2.645
6%
2.600 5,6%
2.546
% Growth
5%
4,7%
2.500
4%
3,9%
2.413
3%
2.400
2%
2.300
1%
1,01%
2.200 0%
Y 2004 Y 2005 Y 2006 Y 2007 Y 2008
Ims_2008
Market Growth (%)
Market Value (Million Euros)

2005
Portaria 618-A/2005, 27th July
and Portaria 826/2005, 14th
September:
- 1ª medicine price reduction
and wholesalers commercial
margin reduction
Decreto-Lei 134/2005, 16th
August and Portaria 827/2005,
14th September
- OTC’s out of Pharmacy

Portaria 618-A/2005, 27th July and Portaria 826/2005, 14th September
618-
1st medicine price reduction (- 6%)
Wholesaler --- 8% ----------» 7,45%
1st wholesaler commercial margin decrease Pharmacy --- 20% ----------» 19,5%
Decreto-Lei 134/2005,16th August and Portaria 827/2005, 14th September
Decreto-
OTC’s out of Pharmacies
Decreto-Lei 235/2006, 6th de Dezembro
Decreto-
The installation, opening and working of private pharmacies in public
hospitals of our National Health Service. It also defines the rules to
concession by public competition.
These pharmacies are outside the rules of capitation and distance.
They are placed in hospitals that are the main centers of prescription
and they are open 24 hours a day.
This legislation is actually being questioned, in both National and
European courts.

Pharmacy New Legal Regime
(Decreto-Lei 307/2007, 31st August and Portarias 1427, 1428, 1429,
1430/2007, 2nd November)
a. Free Pharmacy Ownership
(excluded Industry, Doctors and Wholesalers and limit of 4 pharmacies per
person/company)
b. Medicines over the Internet
(Pharmacys are permitted to sell some medicines from direct requests over the internet)
c. New Services at Pharmacy
d. Geographic Restrictions
(minimum distance between Pharmacies reduced from 500m to just 350m)
e. Population Restrictions
(minimum population to be served per Pharmacy decrease from 4000 to 3500)

Portaria 30-B/2007, 5th de Janeiro, art.º 3º, a) e b)
Wholesaler --- 7,45% ----------» 6,87%
2ª medicine price reduction (- 6%)
Pharmacy --- 19,50% ----------» 18,25%
2ª wholesaler commercial margin decrease
Medicines Policy Price
30% reduction on Generics (October 2008)
Generic Market Share: 20%
Generics Price Reduction: - 30%
Global Market Impact: - 6%
GLOBAL MARKET IMPACT: - 6%

Pre-
Wholesalers
Manufactures
7 Full-Line Wholesalers
(89,44% MS)
280 Companies
Wholesalers
Pharmacies
2800 Pharmacies

Chain of Pharmacies
Free Pharmacy Globalization
New Pharmacy Values
Ownership Finantial Crises (Subprime)

• Independent Commerce (Pharmacy) • Restricted Access to Capital Factor
• Cooperative loyalty and sense of belonging • Free Pharmacy Ownership
• European Cooperative movement • Legal cooperative model
• Market’s Globalization
Market’
• Market’s Globalization
Market’ • Deregulation of Pharma Sector
• European Cooperative movement/network • Economic Environment (Finantial Crisis)
• International scale • Chain of Pharmacies
• Innovative cooperative legal solutions • New Pharmacy Values
• Pharmacy liberalization

Economic & Financial level
Loobing for legal frame changes
Innovative by law solutions
Commercial & Marketing Level
Support Independent Pharmacy and Network of Independent Pharmacies
Operational level
Market Share growth and competitiveness
Markets Globalization (European Network)

Thank you very much for your attention
FECOFAR- Federation of Pharmaceutical Distribution Cooperatives
FECOFAR-
Filipa Godinho Farinha
General Secretary
E-mail: fecofar@net.sapo.pt
Phone: (00) 351 21 838 08 65