Phagro Raises Concerns Over Potential Service Limitations

Marcus Freitag has been re-elected as the Chairman of Phagro, the German pharmaceutical wholesaler association, continuing in his role since 2023 after initially serving as Vice Chairman since 2018. Kerem Inanc from Alliance Healthcare Deutschland has stepped into the Vice Chairman position, having been part of the general board since 2024.

In his remarks following the election, Freitag expressed his enthusiasm for maintaining a strong representation for the pharmaceutical wholesale trade in Berlin. Inanc echoed this sentiment, affirming their support for the strengthening of pharmacies as outlined in the coalition agreement.

However, Phagro has voiced its strong opposition to certain provisions in the coalition agreement, particularly regarding the proposed repeal of the discount ban. The association argues that this change would impose an undue financial burden on wholesalers, undermining a system crucial for the nationwide supply of medicines in Germany.

Phagro emphasizes the necessity of preserving the minimum remuneration for pharmaceutical wholesalers, insisting that the legally mandated fixed markup of 73 cents per package must not be compromised through discounts or rebates.

Last year, the wholesale margin plummeted to a historic low of 3.77 percent, a situation that could worsen with unrestricted discounts. Phagro warns that this could lead to significant limitations in service capacity, which would not serve the best interests of pharmacies or patients.

As the debate continues, the association remains committed to advocating for a fair and sustainable operating environment for pharmaceutical wholesalers, ensuring that they can effectively meet the needs of the healthcare system.