Business
The Copenhagen Post cphpost.dk
18 - 24 January 2013
15
matas
Ray Weaver Chemists’ lockdown on the sale of prescription drugs could doom a potential Matas takeover
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ollowing an intense lobbying effort by the nation’s chemists, it appears likely that parliament will allow them to retain their centuries-old monopoly on selling prescription medicines. Although no formal decision has been reached, the mood among MPs seems to indicate they will side with chemists’ union Danmarks Apotekerforening, which argues that only a tightly controlled network of pharmacies can ensure sufficient levels of drug safety. “We are talking about a modernisation and not a liberalisation of the industry,” Sophie Hæstorp Andersen, the health spokesperson for the PM’s Socialdemokraterne party, told Berlingske newspaper. “We must remember that the distribution of medication works very well and is very safe under the current model.” Camilla Hersom, a spokesperson for coalition member Radikale, agreed that there were elements of the current system she wanted to see preserved. “We have focused on ensuring a safe system that continues to allow us to have control over
Plenty of hand cream; prescriptions ... not so much
prices with good availability, and the current system meets those criteria,” Hersom told Politiken newspaper. Under current laws, pharmacies must be owned by chemists, and there are limits on the number of pharmacies a single chemist may operate. Earlier this year, Konkurrencerådet, a consumer watchdog, said it could find no good argument for maintaining the current structure. Calls for loosening chemists’ grip on dispensing drugs have been ongoing for several years. In 2010, a growth forum sponsored by the then Venstreled government recommended
liberalising the sale of prescription drugs. In June of last year, Konkurrencerådet sent a letter to the health and business ministers arguing that chemists’ statesanctioned monopoly on the sale of pharmaceuticals should come to an end, adding that consumers stood to save upwards of 250 million kroner annually through the liberalisation of the industry. Chemists have campaigned ferociously against the idea. One of the companies that stands to gain from liberalised pharmacy regulations is the high-street retailer Matas. Already the nation’s leading seller of over-the-counter medication
and other health products, over the past year the chain has exploited a loophole that allows it to sell prescription drugs by allowing a chemist to set up a drug dispensary inside its stores. The company has already established 50 dispensaries, all served by a single chemist. Meanwhile, Matas says it is ready to open full-service pharmacies as soon as the industry is deregulated. The prospect of chemists retaining their monopoly is the latest setback for the private equity firm CVC Capital Partners in its efforts to sell the Matas chain. Throughout 2012, CVC tried to find a buyer for its 258 Matas outlets in Denmark and Sweden, but found no takers at the estimated six billion kroner price tag. Only being allowed to operate as full on chemists would justify the asking price to a potential buyer. CVC purchased Matas in 2007 for 5.2 billion kroner with an eye towards the government relaxing the prescription stranglehold. Breaking the chemist’s monopoly is seen as a key growth engine for the company – otherwise it is believed CVC will have a tough time selling Matas. Even though the company has increased its earnings significantly through improved efficiency, sales have remained stagnant at about three billion kroner annually.
Netto backtracks on buying Polish food Public outcry forces supermarket to change its tune on imports
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etto is backing down on its previouslyannounced intention to stock more food from Poland on its shelves. The supermarket chain, which operates under the Dansk Supermarked umbrella along with Føtex and Bilka, met with criticism from customers when it announced its plans. The company said it was looking east in an effort to keep prices low. “[We’ll bring] anything that can fit in a truck and be here in 12 to 14 hours,” Claus JuelJensen, the head of the discount chain, told Jyllands-Posten. “That covers our entire stock, including fresh fish.” The negative customer response to the store’s plan to purchase the “best and cheapest” food available, regardless of where it came from, forced JuelJensen to change his mind. “We can see that customers
want Danish products, and it is the customers who ultimately decide what we stock in Netto,” Juel-Jensen told Berlingske newspaper. Although many posted on Netto’s Facebook page that they were “finished with Netto”, others called the reaction “pure nationalism”. “Should Netto also drop its French pate and Spanish oranges?” asked one poster. Netto already stocks a variety of products from Poland, Germany and Sweden. And while the store will still stock foreign-made foods, the reaction does mean, however, that some Polish products – such as fresh meat – will not make it to the store’s shelves. It was not only customers who weighed in against Netto’s Polish plans the nation’s agriculture, food and consumer council also opposed the idea. “Netto can, of course, do as they please, but [Denmark] pro-
duces safe food without medical waste and salmonella,” Annette Toft, a food policy specialist, told Berlingske newspaper. “In the latest study on pesticides, we were miles ahead of our competitors abroad, and we think that is important to consumers.” The agriculture minister, Mette Gjerskov (Socialdemokraterne), expressed her distaste for Netto’s plans on her Twitter feed. “Netto will buy Polish goods. Hmm. That means more pesticides, bad animal husbandry and less pay. You choose!” she wrote. Netto said the original decision to purchase more goods from Poland would strengthen its position against foreign discount chains like Aldi and Lidl, which buy goods from a much wider variety of suppliers than Netto. The move would have also put Danish food suppliers in direct competition with those from Poland. (RW)
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An airport of larger, more efficiently filled jets
Over 23 million passengers travelled through Copenhagen Airport in 2012, despite fewer flights and several bankruptcies
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record number of passengers passed through Copenhagen Airport in 2012, despite a reduction in the number of flights. The final total of over 23 million passengers was 2.7 percent up on the year before. A 7.3 percent increase in international transfers and a 10.2 percent rise in the number of intercontinental passengers contributed to the increase, according to Thomas Woldbye, the managing director of Copenhagen Airport. The rise underscores the airport’s position as the “most important traffic hub in northern Europe”, Woldbye said. December, however, which traditionally is a busy travel month, saw a 0.4 percent decline compared to the same period in 2011 – a decrease the airport attributed to people taking long
winter breaks away from Denmark and not returning until early 2013. The news of the passenger records came as a surprise considering that the European airtravel business suffered several bankruptcies in 2012, including Danish regional carrier Cimber Sterling. The jump in passengers indicated that airlines are now flying with larger and more efficiently filled airplanes. London remained the top passenger destination for Copenhagen Airport travellers in 2012, with over 133,000 passengers, followed by Oslo (95,597) and Stockholm (90,955). July was the busiest month, with over 2.3 million passengers, followed by June (2.2 million) and August (2.14 million), while January was the quietest with only 1.58 million passengers. Just a month ago, the airport completed a 225 million kroner construction project aimed at accomodating the rise in foreign passengers. (CW)
BRITISH CHAMBER OF COMMERCE IN DENMARK
The Fehmarnbelt Fixed Link – Opportunities and Challenges Technical Director Femern A/S Steen Lykke graduated in 1978 with an MSc from the Technical University of Denmark (DTU), majoring in civil and structural engineering. He is a highly qualified project manager and has considerable experience from major international projects, including as Contract Director of the immersed tunnel and the dredging & reclamation contracts for the Øresund Fixed Link. He was subsequently appointed Project Director and the client’s representative on the Marmaray Tunnel and Railway Project in Istanbul. Steen Lykke is currently Technical Director at Femern A/S where one of his main responsibilities is to manage the development of the concept design and the contracts, and the construction and commissioning of the 18 km long immersed tunnel under the Fehmarnbelt. Programme: • 11.45: Registration and welcome drinks • 12.00: Welcome and introduction by Mariano A. Davies, President, BCCD • 12.10: Guest speaker - Steen Lykke • 12.40: Questions and discussion • 12.55: Announcements by Penny Schmith, Executive Director, BCCD • 13.00: Buffet lunch and networking
Venue: 18 January 2013 11:45 Conference Suite on 1st floor Radisson Blu Royal Hotel Hammerichsgade 1 Copenhagen K
Non-members are very welcome. Please contact BCCD or go to www.bccd.dk for further information. Buy
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If you would like to attend then please send us an email (event@bccd.dk) or call +45 31 18 75 58 • official media partner
Date: 16 January 2013 Denmark’s only English-language newspaper
Arne V. Petersen, Københavns Lufthavne A/S
No break in sight for pharmaceutical monopoly Record year for Airport