Abstract
Mail Order and Internet Pharmacy in Europe - Embracing the New Challenge
Covers 17 European States plus a chapter describing the progress of online
pharmacy in the USA - includes: Austria, Belgium, Czech Republic, Denmark,
Finland, France, Germany, Hungary, Italy, the Netherlands, Norway, Poland,
Slovak Republic, Spain, Sweden, Switzerland and the United Kingdom
Executive Summary
The mail order and Internet pharmacy concept in Europe has been on a long
journey since the mid 1990s when the concept first began to appear. Today, it
is breaking through as a new and challenging retail channel especially in
Germany, the United Kingdom, Switzerland, the Netherlands, parts of the Nordic
Region and Poland. This is the result of entrepreneurial drive and legal
decisions by the European Court of Justice forcing the national regulatory
agendas of European States
The mail order and Internet pharmacy channel in Europe should not be
underestimated. For example around a third of consumer purchases of the weight
reducing brand Alli (GSK) in 2009 in Germany were purchased through mail order
and Internet pharmacy.
The question now for healthcare manufacturers is whether to resist the
development of mail order and Internet channels in order to preserve prices
and maintain the confidence of their traditional pharmacy customers or to
identify areas of opportunity to reach specific target audiences that prefer
the privacy, convenience and low prices gained by buying their medicines
online.
“When we add together the different Internet services we end up with a
virtual healthcare community which not only provides legal access to
prescription and non-prescription medicines and other associated products but
includes online medical consultants where patients can get advice and obtain
prescriptions for drugs for embarrassing conditions, contraception and
lifestyle as well as other personal concerns such as STD ” James W
Dudley(author of the report).
Some of the Questions this first report into Mail Order and Internet Pharmacies seeks to answer
- Do mail order and Internet pharmacies offering high discounts on
pharmaceutical products present an economic threat to the European healthcare
supply chain or a retail channel that the meets the needs of specific consumer
segments and special interest patient groups?
- Is there an opportunity for healthcare manufacturers and associated
suppliers to design products and services that exploit Internet technology and
the privacy and convenience that online driven channels offer as a competitive
advantage?
- Is the entry of the major distributors, Celesio, Alliance Boots and
Phoenix into the sector an indication of the longer term, strategic importance
of mail order and Internet pharmacy in Europe?
- Are patients attracted to online clinics legitimately writing
prescriptions for impotence, intimate infections and pain, incontinence, male
pattern baldness, smoking cessation and lifestyle drugs and delivering these
at discount prices to patients' homes via Internet pharmacies as well as
providing contraception advice and diagnostics for STDs including HIV?
- Within the bounds of patient safety and good ethical practice should
manufacturers explore how to link their brands to the services provided by
authorised online medical consultants and clinics?
- Has the contradiction in the attitudes of regulators attempting to ban or
restrict direct delivery marketing of pharmaceutical products led to the
massive growth of unregulated, illegal and fraudulent organisations which use
the Internet to access customers?
- What lessons can pharmaceutical companies learn from the rapid growth of
mail order and Internet pharmacies in the USA and Germany - are the success
models transferable?
“This 17 country study has identified many of the ethical and economic
issues that pharmaceutical manufacturers and other healthcare suppliers need
to address “
Methodology
This report is based on:
- Research among mail order and Internet pharmacies in Europe.
- Relevant published studies from James Dudley Management
- Personal interviews with leading manufacturers, wholesalers and retail
chain managers
- Library and literature searches
- Trade and professional journals
- Information from trade associations and state institutes
- Bought-in research data.
Table of Contents
Chapter 1
- Introduction - Mail order and Internet Pharmacies in Europe
- Introduction to Mail order and Internet Pharmacies
- Evolution of the Legal Status of Mail Order and Internet Pharmacies for
Medicines in Europe
- Mail Order and Internet Pharmacies Observed Drivers 1999 -2010
- Internet Pharmacy an Uneven Success in Europe
- Unregulated, Illegal and Fraudulent Online Pharmacies
- European Measures against Dubious Mail Order Pharmacies
- Internet Applications to the Delivery of Primary Care Services in Europe
- Business to Business Internet Applications in Pharmaceutical
Distribution in Europe
- Alliance Boots Internet Portal - dot Info in Europe
- Celesio - Internet based Solutions for Pharmacies in Europe
- Business to Consumer (B2C) Mail order and Internet Pharmacy Retailing
Applications in Europe
- Internet and Mail Order Pharmacy Retailing Models in Europe Compared
- ‘Pureplay' Online Mail Order Pharmacies in Europe
- Online Consultation Pharmacies
- The Emergence of Healthcare Portals linked to ‘Clicks and Bricks'
Pharmacies in Europe
- Pharmacy chains with online services -‘Clicks and Bricks'
- Online ordering for Non-pharmacy Pick-up Points in Germany
- Self-medication Web sites Direct to Consumer from Manufacturer in the UK
- Conclusions - Differences between Mail order and Internet Pharmacy
Business Models
Chapter 2
- The Development of Mail Order and Internet Pharmacy in the USA
- Mail Order and Internet Pharmacy - An Overview of Growth in the USA
- The Role of Pharmacy Benefit Managers and their Influence on the
Development of Mail Order and Internet Pharmacy in the US
- Leading PBMs in the US
- CVS/ Caremark Rx, Inc.
- Medco Health Solutions, Inc.
- Express Scripts
- Online Consultation Pharmacies
- Conclusions - Mail Order and Internet Pharmacy in the USA
Chapter 3
- Mail Order and Internet Pharmacy Development
- The German Experience
- Mail order and Internet Pharmacy in Germany
- Turnover of the German Mail Order Pharmacy Sector by Product Group
- Who uses Internet and Mail order Pharmacies in Germany?
- Non-prescription and Healthcare Sales through Mail Order and Internet
Pharmacies in Germany
- Non-prescription and Healthcare Therapeutic Categories most Purchased
through Mail Order and Internet Pharmacies in Germany
- Mail Order and Internet Pharmacies - Medium sized Businesses in Germany?
- Leading Mail Order and Internet Pharmacy Brands in Germany
- DocMorris Building a New Multi-Channel Retail Pharmacy Brand in Europe
- Conclusions Mail Order and Internet Pharmacy in Germany
Chapter 4
- Mail order and Internet Pharmacy Development in Switzerland
- The Rise of Mail Order and Internet Pharmacy in Switzerland
- Mail order and Internet Pharmacy Channels in Switzerland
- Statutory Health Insurers in Switzerland Driving Mail Order Pharmacies
- MediService - Swiss Distance Pharmacy Concept
- Zur Rose Versandapotheke - Internet Pharmacy in Switzerland
- New Mail order Pharmacy in Switzerland xtrapharm
- Conclusions for Mail order and Internet Pharmacies in Switzerland
Chapter 5
- Mail Order and Internet Pharmacies in the UK
- Mail Order and Internet Pharmacies in the UK
- Code of Practice for Mail Order and Internet Pharmacies in the UK
- Development of Mail Order and Internet Pharmacies in the UK
- Mail Order and Internet Healthcare Consumers in the UK
- Leading ‘Pure Play' online Pharmacy Services in the UK
- Pharmacy2U
- Allcures
- Chemistdirect
- Online Clinics in the UK registered as Independent Medical Agencies
- Doctorfox
- HealthExpress.co.uk
- DrThom
- ‘Clicks and Bricks' Mail Order and Internet Pharmacy in the United
Kingdom
- Online Animal Health Pharmacies in the UK
- MedicAnimal.com
- Vet-medic
- Conclusions Mail Order and Internet Pharmacies in the UK
Chapter 6
- Mail Order and Internet Pharmacies in the Netherlands and Belgium
- Development of Internet Pharmacies the Netherlands
- The Netherlands Centre for major European Mail Order and Internet
Pharmacies
- ‘Pureplay' Internet Pharmacies in the Netherlands
- Retail Pharmacy Chains embracing Internet driven Mail order Services in
the Netherlands
- Independent Pharmacy Web sites in the Netherlands
- Internet Pharmacies in the Netherlands - Conclusions
- Development of Internet Pharmacies in Belgium
- Online Strategies of Major Retail Pharmacy Multiple in Belgium
- Lloyds Pharma (Celesio
- Multipharma/PPL
- EPC-Familia
- Pharma Sante (Pharmacie du Peuple and Sauvegarde)
- Conclusions Belgium
Chapter 7
- Mail Order and Internet Pharmacies in the Nordic Region
- Development of Internet Pharmacies in Denmark
- Virtual Pharmacies in Denmark providing Internet Access
- Development of Internet Pharmacies in Finland
- Development of Internet Pharmacies in Norway
- Development of Internet Pharmacies in Sweden
Chapter 8
- Mail Order and Internet Pharmacies in Central European States
- Mail Order Pharmacies in Poland - Online and ‘Clicks and Bricks
- Growth of ‘Pureplay' Online Pharmacies in Poland
- “Clicks and bricks” Online Pharmacy Networks in Poland
- Conclusions Mail Order and Internet Pharmacies in Poland
- Internet Pharmacies in Czech Republic
- Internet Pharmacies Slovakia
- Internet Pharmacies Hungary
Chapter 9
- Mail Order and Internet Pharmacies in Other European States
- Mail Order and Internet Pharmacies the Laggard Markets in Europe
- Development of Mail Order and Internet Pharmacies in Austria
- Development of Mail Order and Internet Pharmacies in France
- Development of Internet Pharmacies in Italy
- Development of Internet Pharmacies in Spain
Chapter 10
- Conclusions of the Study
- Opportunities or Threats for Healthcare Suppliers in Europe
- Pharmaceutical Manufacturers and Healthcare Suppliers -Meeting the
Challenge of Mail order and Internet Marketing Channels in Europe
- Conclusions of the Study -Key Factors driving the Internet as a Health
Information Provider and Pharmacy Delivery Channel
- The Entrepreneurial Driver - The Key to Growth of the Mail Order and
Internet Pharmacy Channel in Europe
- Specific Consumer and Patient Segments as Early Adopters of Mail Order
and Internet Pharmacy
- A Regulatory Environment that helps Foster the Development of the
Internet Pharmacy Channel
- Major Wholesale and Retail Companies as Early Adopters of Mail Order and
Internet Pharmacy in Europe
- Institutional Intervention to help Consumers distinguish between
Reliable and Unreliable Internet Pharmacy Operators
- Opportunities and Challenges for Manufacturers Supplying Mail Order and
Internet Pharmacies in Europe
- Embracing Mail order and Internet Pharmacies in Europe -Specific
Opportunities for Healthcare Manufacturers
- Product Design to Gain Competitive Advantage for Healthcare Brands in
Internet Pharmacies
- Exploiting Internet Pharmacies to Reach Specific Audiences for New
Non-prescription Healthcare Brands
- Gaining Competitive Advantages for Generic Pharmaceutical Products in
Internet Pharmacies
- Taking Mail Order and Internet Pharmacy to a New Level in Europe
Figures, Graphs and Tables
Chapter 1
- Figure 1: Summary of Observed Drivers for Mail Order and Internet
Pharmacies Since 1999
- Figure 2: Key Characteristics of the different Types of Mail Order and
Internet Pharmacy in Europe
- Graph1: Europe' s Leading ‘Pureplay' Mail Order and Internet
Pharmacies - based on estimated euro Turnover for 2009
- Table 1 - Online Commerce in Pharmaceuticals -Regulatory Status in Europe
States Permitting Online Commerce - Revised 2010
Chapter 2
- Figure 3: The Role of Pharmacy Benefits Managers (PBMs) in Processing and
Reimbursing Prescription Medicine Claims in the US
- Graph 2: US Pharmaceutical Value and Volume Growth Ten Year Growth
Comparisons by Pharmacy Channel
- Graph 3: US Pharmaceutical Market Prescription Value and Volume Share by
Retail Channel
- Graph 4: PBM Prescription Share by Affiliated, Non-affiliated and Mail
Order Pharmacies in the US
- Table 2 - Top 10 Leading Pharmacy Benefit Managers (PBMs) in the US
Chapter 3
- Graph 5: Turnover of the German Mail Order Pharmacy Sector by Product
Group 2009
- Graph 6: German Consumers Purchasing Non-prescription Medicines from the
Internet 2009
- Graph 7: Age Profile Germans who Shop for Non-prescription Medicines by
Channel
- Graph 8: Income of Profile Germans who Shop for Non-prescription Medicines
by Pharmacy compared to Internet or Mail Order Pharmacy
- Graph 9: Sales of Non-prescription Healthcare and through Mail Order
Pharmacies in Germany
- Graph 10: % Split of Sales of Non-prescription Medicines and through Mail
Order Pharmacies in Germany by main Category
- Graph 11: Germany -% Share of Pharmacy only Non-prescription Medicine
Purchased through Mail Order Channels by Therapeutic Categories
- Graph 12: Leading Mail Order Pharmacies by Estimated Turnover -
€millions 2009
- Graph 13: Brand Owner % Share of the Market Mail Order Pharmacy -Germany
- Graph 14: DocMorris Sales History 2002 -2009
- Graph 15: Consumer Awareness German Retail Pharmacy Brands
- Table 3 - Top 10 Non-prescription Brands Pharmacy compared to Mail Order
and Internet - Germany
Chapter 4
- Graph 16: % Share of Swiss Pharmaceutical Market by Channel 2010
- Table 4 - Switzerland - Mail order Pharmaceutical Sales Compared to other
Channels 2004 to 2010 est €millions at Consumer Purchases Prices
Chapter 5
- Graph 17: UK -% All Adults Using the Internet Seeking health Related
Information
- Graph 18: UK % All Adults in the Who Purchased Online 2010
- Graph 19: UK -% All Adults (who Purchased online) who Bought a Medicine
- Table 5 -Consumer Sources of Purchase for OTC Self-Medication by Channel
in the UK
- Table 6 -Top 20 Pharmacy Chains in the UK with Online Pharmacy Status
Chapter 7
- Table 7 - Major Retail Pharmacy Chains in the Netherlands - Web site
Services
Chapter 8
- Graph 20: Internet Pharmacy Channel Share by Category in Poland
- Table 8 -‘Pureplay' Internet Pharmacies in Poland - Unique Users
Chapter 9
- Table 9 - Top Internet based Mail order Pharmacies in Spain
Chapter 10
- Figure 4: A Conceptual Framework for Developing Consumer Offerings for
Mail order and Internet Pharmacies
- Graph 21: Pharmacies in Leading European States -% Share of Number of
European Pharmacies by Ownership Classification 2009
- Graph 22: Alli (GSK) Source of Purchase by Channel Germany 2009
- Table 10 - Consumers by State in Europe Using the Internet to Purchase
Nonprescription Medicines 2009
