Now they are asking the state to intervene against the pharmacy industry. Lise Wiik, leader of the pensioners’ association in Telemark, believes that the price differences for over-the-counter medicines have become far too great in shops and online. She therefore reacts strongly to the results of a price check that news published recently, where Apotek1 has set different prices for a number of goods. Asking the state to intervene The association also points out that the price differences are a financial burden for many elderly people, who are often heavy consumers of medicines. – We know very well that not everyone has the opportunity to shop online, says Wiik to news. She believes the state should take the lead to ensure fair prices. – Medicines are a necessity for some people. Especially for many elderly people. Should the state take control of pharmacies to ensure fair prices? She fears that the price differences could erode the market for the businesses in the long term. – Everyone has a need to visit a physical store every now and then, says Wiik. At the Tuvensenteret in Notodden, we meet the customer Vidar Skari. He reacts to the price differences. – This will not be right, says the 70-year-old from Kongsberg firmly. Customer Vidar Skari believes that the price should be the same online and in pharmacies. Photo: Theo Aasland Valen / news Rejects deliberate discrimination In the industry, it is the Apotek1 chain in particular that operates with different prices in store and online. They also offer online prices by so-called “click and collect”. The chain’s press manager, Silje Ensrud, rejects the claim that they deliberately discriminate against the elderly or other customer groups. – We think it is sad if someone experiences this as discriminatory, she says to news. Press manager at Apotek1, Silje Ensrud, has the impression that most customers understand why there are price differences online and in store. Photo: Tommy Borge Arnesen / Tommy Borge Arnesen – Our opinion is that the vast majority of customers understand that it is cheaper to run an online store than physical pharmacies with health services and professional advice. Apotek1 is by far the country’s largest pharmacy chain. The chain owns and operates over 450 physical pharmacies in Norway, in addition to its own wholesaler and online pharmacy. Has been contacted by curious customers According to Ensrud, the chain has lower online prices of 30 per cent of all non-prescription goods in order to meet the competition in the online market. She also believes that the prices in physical pharmacies are good, compared to other chains in the same industry. After news focused on the large price differences, they have received several inquiries from customers, she says. The pharmacies sell goods worth over NOK 45 billion a year. Around 3 per cent of turnover is in online pharmacies. Photo: Philip Hofgaard / news Ensrud, however, feels that customers accept the price difference when they hear how this is connected. – They understand that it is cheaper to run an online pharmacy, and that the prices are different in the two different markets, she says, and believes that many appreciate the fact that there is a pharmacy in the local area that offers low-threshold healthcare services. – For some, it is absolutely crucial that they get to come to a pharmacy and talk to authorized healthcare personnel, she says. – We choose to open pharmacies all over the country in a society where both bank branches, doctor’s offices and other physical contact points disappear. The market is dominated by chains A separate pharmacy committee has recently delivered a report on the future of the industry in Norway. There it emerged that turnover at online pharmacies has increased significantly. In 2021, it was estimated at around NOK 1.5 billion. This is still only 3 percent of the total turnover for pharmacy products. The turnover at online pharmacies has increased significantly. At the same time, the number of physical outlets is also increasing. Photo: Håkon Mannsåker Since the beginning of the 2000s, there has been a significant increase in the number of physical pharmacies in Norway. In 2001, the number was 397. In 2022, the number had risen to 1,034. The majority of the branches are associated with a chain. The largest are Apotek1 (451), Vitusapotek (305) and Boots apotek (149). The Pharmacy Committee’s price surveys show that there is a lot of competition for non-prescription medicines. Physical pharmacies, on the other hand, do not seem to participate in the competition for price in the same way. The committee therefore believes that the objectives of the lowest possible price are not met through the current pharmacy legislation. Tough competition With three large chains, the pharmacy market has long been a priority market to monitor for the Norwegian Competition Authority. Communications manager at Apotekforeningen, Jostein Soldal, however, denies that there is too little competition. Communications manager at the Pharmacy Association, Jostein Soldal, considers introducing state pharmacies to be an out-of-date issue. Photo: Stian Gregersen/Apotekforeningen – There is tough competition between the more than 1,000 pharmacies in Norway. Also between online pharmacies and physical pharmacies, he believes. – There is also fierce competition with other retail outlets for the products in question. Including grocery stores and cosmetics retailers, says Soldal. He considers it out of the question to assess state pharmacies. – The most important thing for patients is that there are the lowest possible and predictable prices for prescription medicines, he believes. Challenges in the EEA agreement State Secretary in the Ministry of Health and Care, Karl Kristian Bakeng (Ap), says they are aware of the large price differences online and in stores. The ministry is now awaiting the hearing of the Pharmacy Committee’s investigation, which will continue until 15 May. State Secretary in the Ministry of Health and Care, Karl Kristian Bekeng (Ap), is well aware that there are large price differences for over-the-counter medicines online and in shops. Photo: Esten Borgos, Borgos Foto AS – So far, the focus of medicine policy has been to ensure the population’s quick and equal access to safe and effective medicines, says Bekeng. – Could it become relevant with state pharmacies? – The Pharmacy Committee points out that state ownership will be able to provide increased opportunities for managing the pharmacy sector, but also excludes private owners.
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Think price differences in the pharmacy market are discrimination – news Vestfold and Telemark – Local news, TV and radio
