Navigating the Complexities of Pharmaceutical Regulation: Insights from Sanacorp's New Leadership

Patrick Neuss, who took over as the Chairman of the Board at Sanacorp on June 1, 2024, has embarked on a journey to familiarize himself with the organization, which employs around 3,000 people across 19 decentralized locations. In his initial months, Neuss prioritized visiting these branches and engaging in dialogue with local pharmacists, emphasizing Sanacorp's commitment to supporting its members rather than solely focusing on profit maximization.

Coming from a background in the furniture industry, Neuss expressed surprise at the rigorous regulatory environment in the pharmaceutical wholesale sector, which differs significantly from other retail formats. He noted that essential retail strategies such as price calculation and advertising are heavily restricted in this field. Unlike typical retailers, Sanacorp operates as a full-service provider, making inventory management a significant challenge. He highlighted the contrast with online retailers, pointing out that while they often offer next-day delivery, Sanacorp's model requires deliveries within three to four hours, which raises questions about operational efficacy.

Neuss praised the dedication of local pharmacists, noting their emotional investment in patient care. He observed that pharmacists often serve as the first point of contact for patients after medical consultations, offering support during health crises and guiding them through treatment processes. This deep-seated commitment to patient welfare creates a warm atmosphere in pharmacies, reflecting the intrinsic human elements involved in healthcare.

Looking ahead, Neuss aims to alleviate operational burdens on pharmacies, advocating for more efficient management of over-the-counter (OTC) products and encouraging pharmacists to adopt a more entrepreneurial approach in their sales strategies. He acknowledged the fierce competition posed by online retailers and drugstores, suggesting that Sanacorp could play a pivotal role in helping pharmacies optimize their product offerings.

On the topic of digital transformation, Neuss revealed plans for Sanacorp to enhance its digital services. The company intends to launch a digital signage solution, expand its digital platform 'Sanacorp-Connect', and introduce electronic delivery notes and invoices to reduce bureaucratic hurdles for pharmacies. By fostering closer ties with wholesalers, Neuss believes pharmacies can improve their inventory management, ultimately benefiting their operations.

Addressing the economic pressures facing pharmacies, Neuss acknowledged the thin profit margins that characterize the sector, particularly regarding high-priced medications. He expressed a desire to improve Sanacorp's economic performance while ensuring reasonable dividend distributions to stakeholders. Furthermore, he acknowledged that the current economic climate has altered the expectations of banks regarding financing.

Regarding future expansion, Neuss indicated that while new branches are planned, such processes are lengthy and require strategic land acquisition. He confirmed that a new facility is underway in Stralsund, set to open in 2026, but emphasized that immediate expansions are not in the pipeline.

The recent ruling by the Federal Court of Justice (BGH) has had a positive impact on Sanacorp's operations, according to Neuss, who highlighted the delicate balance the company must maintain in a competitive marketplace while adhering to legal standards.

Neuss also commented on the ongoing discussions regarding the regulation of discounts in the pharmaceutical pricing framework, advocating for a united front among stakeholders in the industry to communicate the urgency of the situation to the government. He emphasized the necessity for an increase in pharmacy remuneration to sustain services amidst rising operational costs.

In light of recent calls for stricter temperature controls in pharmaceutical logistics, Neuss expressed frustration over perceived inequities between the standards upheld by wholesalers and those applied to online retailers. He called for government intervention to establish clear regulations that ensure the safe handling of pharmaceutical products.