When Bror-Lennart Mentzoni started Gokstad pharmacy in Sandefjord, all pharmacies in Norway were owned by individuals with pharmaceutical education. Today, three chains dominate the market in Norway, both as wholesalers and shop owners. There are Apotek1, Vitusapotek and Boots Apotek. The three chains are all owned by large international companies, which are involved in the distribution and sale of pharmaceuticals both in and outside Europe. news has made several cases about the pharmacy industry in Norway, following tips about large price differences and difficult competitive conditions. Mentzoni is one of those who have refused to sell to a chain. – It is primarily because I think running a pharmacy is interesting and exciting to do. Gokstad Apotek has many regular customers, but has had a lot of competition from chain stores that have established themselves in the local area. Photo: Tom Ole Buaas / news Chain took over the premises Mentzoni values being able to be responsible for their own everyday life, but understands that many have sold. – The big chains invested heavily and heavily in getting into the market. They did it quickly and efficiently, and the development has only continued as the chains have grown. Gokstad Apotek was previously located at the Kilensenteret in Sandefjord, but moved a little further down the street when the lease was not extended. Apotek1 has since moved into the old premises in Kilensenteret. The increased competition led to a significant decrease in sales for Gokstad Apotek. – It was demanding. And when this happens, you wonder if the competition between us independents and the big chains is equal and real. Apotek1 moved into the old premises of Gokstad Apotek at Kilensenteret in Sandefjord. Photo: Tom Ole Buaas / news Will split up wholesalers and outlets Mentzoni now runs four local outlets in Sandefjord with a total of 33 employees. He believes it is impossible to compete with the large international chains, as long as they get to own the wholesale section. – What is wrong is that the chains own both a pharmaceutical wholesaler and the pharmacies. They have two sources of income. And indirectly, I therefore have to support one of my competitors when I buy my goods. Then it becomes impossible to compete. – But why do you have to buy from them? – I have to buy from a registered pharmaceutical wholesaler in Norway. There are three of them, and they are each owned by a pharmacy chain. Mentzoni believes that something must be done about the regulations. – I think it would have been right to split up, so that those who own the pharmacies do not get the opportunity to own the wholesale section. Then you would have had equal and real competition. I think it works well today, but Mentzoni faces opposition from several quarters with his proposal. Thor-Arne Englund, business policy director of the Apotekforeningen, believes that such a change will have many negative consequences. He believes that the pharmacy market in Norway works very well. – There is high delivery reliability, and we actually have among the lowest prices for prescription drugs in Europe. An important reason for the low prices is that Norway has three large wholesalers who operate efficiently, who compete and who have economies of scale that customers can benefit from, Englund points out. – So both I and the Pharmacy Law Committee believe that a ban on such an arrangement will not lead to a better offer for Norwegian pharmacy customers, but perhaps rather the opposite. Law professor Tore Bråthen has led the Pharmacy Committee, which was appointed by the Solberg government in 2021. Photo: Meek, Tore / SCANPIX – Difficult for new players The Pharmacy Law Committee, to which Englund refers, has submitted a report that is open to public consultation until 15 May. The report states that there are unfortunate aspects of the current system, including that competition is limited and that it is difficult for new players to establish themselves. A majority of the committee has nevertheless agreed that they do not propose the changes Mentzoni requests. Among other things, because it is uncertain whether it is legal to introduce such rules. And because the committee believes that it could weaken security of supply if the large wholesalers lose some of their interest in the Norwegian market. Bror-Lennart Mentzoni owns and runs four pharmacy outlets in Sandefjord. He is also a deputy member of the board of the Apotekforeningen. Photo: Tom Ole Buaas Will probably have to sell to the chains In the Ministry of Health and Care, they are awaiting the public consultation, which has a deadline of 15 May. State Secretary Karl Kristian Bekeng (Ap) says that the Pharmacy Committee was asked to assess the need for regulations that facilitate increased competition and new pharmacy solutions. – We are now awaiting the consultation bodies’ input. Together with the report, these will form part of our assessments on the organization of the Pharmacy Act, says Bakeng. Brother Lennart Mentzoni has no plans to give up just yet, but when he retires he will probably have to sell to one of the chains. – If there had been a change, perhaps another person could buy the pharmacy and run it as their own. But as of today, I think it is difficult, concludes Mentzoni.
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Have to buy their products from the pharmacy chains:
