The document discusses changes in the pharmacy sector in France and strategies adopted by cooperatives. It notes that wholesalers are suffering from increased direct sales from manufacturers to pharmacies. New risks have emerged with the opening of pharmacy capital to non-pharmacists and potential introduction of a UK-style pricing model. Cooperatives are consolidating wholesale activities, competing at national levels, and connecting with pharmacy groups. One cooperative's new economic model provides dividends to pharmacists based on purchases and allows capital ownership to support their independence.

1. COOPERATIVES WORKING IN THE PHARMACY SECTOR FRANCE Rome March 31st 2009

5. 4. New risks emerged in France Opening of the capital of pharmacies DTP model (as in the UK) Double pricing Quota system => A new economic model is being modelled towards the development of services to pharmacies KEY FIGURES & FACT

6. Strategies of cooperatives in France become clearer: - consolidation of wholesale activities at European level (Millenium) - wholesale competition at national level in areas where historically cooperatives were lonely (Cerp Rouen, Cerp Rhin Rhône Méditerranée) - connections with Group of pharmacies (CERPenthès) - disengagement of the historic wholesale business activity (Cerp Lorraine sold to Phoenix Pharma) - introduction of a new economic model (Groupe Welcoop)

7. Groupe WELCOOP (ex Cerp Lorraine Group) proposes to the 22,600 pharmacies of France to become owner of their suppliers. WELCOOP : THE NEW ECONOMIC MODEL

8. This new economic model is based on 3 major grounds: 1. Computing and Management with Pharmagest Interactive, leader in France with 43% market share equipping 9.800 pharmacies in France with a complete back-office solution 2. Advice and Organization with Profidia (merchandising, pricing structure, geomarketing…) 3. Products Offer with Generics (Cristers), Medical Equipment (D,Médica) and Parallel Imports (Pharma Lab)

9. This new economic model adds a two-way value for the pharmacists: - increasing the margins with the right to get cooperative dividends based on a percentage on all purchases done with the Products Offer (20% for Cristers, 4% for D,Médica, 5% for Pharma Lab), - accessing the capital of the Group by opening the capital of the holding Welcoop Pharma

10. Future priorities and strategies for French cooperatives : Find the model of tomorrow to allow the pharmacists to remain competitive, liberal and independent.

11. Thank you for your attention !