German Drug Wholesale Sector Uncertain Of Future

Germany's drug wholesale sector was able to increase sales in first-half1997 by 2%-3%, largely due to a 20% surge in June, as purchasers acted ahead of expected rises in patient charges and possible regulatory moves over pack size restrictions.

Bernd Scheifele, chairman of the major Phoenix group, said he expected sales in the sector for the whole of 1997 to retreat 2%-3%, with higher patient charges for drugs - or the prospect of them - having a dampening effect on demand. Mr Scheifele expects Phoenix turnover to dip in line with market trends, with a weakening in profits and tougher competition.

Phoenix has reported a rise in 1996/97 turnover from 7.25 billion Deutschemarks to 7.37 billion marks ($4.02 billion), with gross profits increasing 31.5% to 86 million marks and net profits up 46.8% at 60.2 million marks.