Galenica Still Looking For Acquisitions

The Swiss drug wholesale group Galenica is still seeking fresh acquisitions as the trend for concentration in the Swiss drug wholesaling sector intensifies. The trend is widely seen as reflecting the new legislation on health insurance, the new cartel law, drug price reductions and new distribution outlets.

Galenica took over drugstore wholesaler Amidro in June, along with its subsidiary Wyss Pharma AG. Galenica has completed the acquisition of medical practice supplies company Stotzer of Berne.

Galenica group sales are expected to rise from 1.25 to 1.6 billion Swiss francs ($1.3 billion) in 1996 in the wake of these new purchases. Fritz Hirschbrunner, Galenica's finance director, expects 1996 profits to rise over 30% in contrast to the 14.9% decline in group profits last year. The firm's share of the wholesale market in terms of deliveries to doctors, pharmacists and drug stores is around 46%.