Annual report 2018

18 | Galenica annual report 2018 Health & Beauty Segment – Retail Business sector Awards for health promotion projects Amavita demonstrated its closeness to customers with the first Amavita Awards, which promote pro- jects in the area of healthcare, health promotion and prevention. Two projects to support people with cancer received awards in 2018: the jury price went to a children’s book written by a mother on battling cancer, and the people’s choice price was given to an association pro- moting physical activity for those affected, both during and after cancer. The first edition of the Amavita Awards was held in 2018 in French- speaking Switzerland. Due to the considerable success, invitations for entries for the Amavita Awards 2019 will be extended to the whole of Switzerland. Contributions to reducing healthcare costs evolution Galenica makes an active contribution to reducing healthcare costs evolution through generic sub- stitution. On a comparable basis, sales of generics thus rose again in 2018 (+8.1%). The substitution rate for medications for which a generic is avail- able and for which substitution is also possible increased from 68% to 70%. A pleasingly high percentage, taking into account the fact that prescribers often favour the original product for certain pathologies such as mental illnesses. Galenica gained further valuable knowledge from the Aprioris walk-in clinic pilot project in 2018, including in the areas of duty of documentation and collaboration with partners. Under this pilot project, Aprioris offers immediate medical assis- tance from a care expert in the Amavita phar- macy in Adliswil near Zurich and in the Sun Store Métropole pharmacy in Lausanne. While patient satisfaction with the service was very high, customer frequency was below expectations. Galenica will define further steps in due course. Meanwhile, the Health Maintenance Organisation Insurance Plus (HMO Plus) pilot project, which has previously only been offered in Zurich, is now being extended to other regions. In Zurich, it is an integrated care model from health insurer CSS, the physician network Medix and Galenica. CSS customers insured under the alternative insurance model HMO Plus can go to a Medix doctor or one of the participating Amavita and Coop Vitality pharmacies as the first point of contact in the event of a health problem. Winconcept with personalised customer magazine Winconcept, the Galenica Group’s service provider for owner-run phar- macies and drugstores, registered a further increase in users of its in-house quality management system Process One in 2018. Process One is offered to both Winconcept partners and third-party pharma- cies. The new company website and the customised websites for Winconcept partners were well received. Since 2018, affiliated partner pharmacies have been able to increase personalisation of the customer magazine and thereby strengthen their brand presence in their region. Winconcept now also offers the Diabetes Check as well as the A-Derma product range from Pierre Fabre, which is exclusively distributed in Switzerland by the Products & Brands Business sector and was previ- ously only available in Amavita, Sun Store and Coop Vitality pharmacies. Own pharmacies and shareholdings 31.12.2018 31.12.2017 Change Amavita pharmacies 1) 163 157 +6 Sun Store pharmacies 1) 97 97 — Coop Vitality pharmacies 2) (joint venture with Coop) 78 75 +3 Mediservice specialty pharmacy 1) 1 1 — Majority holdings in other pharmacies 1) 5 5 — Minority holdings in other pharmacies 2) 1 2 –1 Total own points of sale 345 337 +8 1) Fully consolidated 2) Consolidated at equity level Independent partners 31.12.2018 31.12.2017 Change Amavita partnerships 7 8 –1 Winconcept partner pharmacies 149 152 –3 Total independent partners 156 160 –4 Retail