Sanacorp CEO Cautions Against High Expectations for Discount Ruling Reversal

Sanacorp, one of Germany's largest pharmaceutical wholesalers, has reported notable financial growth for the 2025 fiscal year, according to figures presented at its recent general assembly. The cooperative achieved a total turnover of approximately 7.9 billion euros, reflecting a 7.5% increase compared to the previous year. Pre-tax earnings, including special effects, reached 78.8 million euros, a significant rise from 14.3 million euros recorded in the preceding period.

Despite the positive financial results, the number of Sanacorp's member pharmacies declined year-on-year, dropping from 7,271 to 7,077. This contraction aligns with broader sector trends, as the number of pharmacies across Germany continues to decrease. Eligible cooperative members will receive a total dividend of 14%, composed of a 3.4% base dividend and an additional 10.6% support dividend for those surpassing 600,000 euros in annual turnover. Notably, the threshold for this higher dividend will increase to one million euros in the future.

Sanacorp leadership attributed the company's improved performance to its ongoing efficiency and future-oriented initiatives, which were introduced over two years ago. More than half of the planned measures have already been completed or are in progress. However, implementing required personnel adjustments presented considerable challenges. Initial positive economic effects have started to materialize as a result of these efforts.

The financial stability of pharmacies remains a central concern for Sanacorp, given the impact on its cooperative model. During the assembly, company leadership referenced the sector-wide pharmacy protests in March, which highlighted the industry's unified response to ongoing challenges. The recent increase in pharmacy remuneration was acknowledged as a positive signal, though it was noted that this measure does not fully address the sector's core economic issues. Additional increases in the statutory rebate to health insurers and rising operational costs are expected to offset much of the benefit from the remuneration adjustment. The cooperative emphasized that these measures represent cosmetic changes rather than substantive solutions to the underlying structural problems.

Sanacorp also drew attention to the evolving responsibilities of pharmacies, stating that new tasks must be accompanied by adequate and sustainable compensation to ensure the long-term viability of the sector. The company highlighted the essential but often overlooked role of pharmaceutical wholesalers in ensuring a continuous supply of medicines throughout Germany. The current regulatory framework, particularly the cap on wholesale compensation for high-cost medicines (the so-called 'Hochpreiserdeckel'), has seen only a minimal increase since its introduction in 2012, rising from 38.50 euros to just 38.53 euros per package. This prolonged stagnation has contributed to mounting economic pressure on wholesalers.

Industry observers note that the ongoing escalation in wholesale costs, especially in the prescription medicine segment, now outpaces revenue growth. This development raises concerns about the sustainability of Germany's nationwide pharmaceutical supply network. The association representing pharmaceutical wholesalers, Phagro, has flagged these challenges as urgent and has called for the adjustment of fixed compensation rates to reflect rising expenses.

The situation has also prompted calls for reform in how pharmacy remuneration is determined. Proposals include allowing direct negotiations between pharmacies and health insurers, although current reform drafts do not appear to offer significant financial improvements for most pharmacies. Analysts estimate that the lack of substantial remuneration increases could cost the average pharmacy tens of thousands of euros annually.

Amid these sector-wide challenges, Sanacorp's leadership has urged both government and industry stakeholders to review the economic conditions affecting pharmacies and wholesalers. They advocate for policy adjustments that address both immediate financial pressures and ensure the continued provision of pharmaceutical services across the country.