Pharmag banking on niche e-sales to pull it out of the doldrums

Pharmaceuticals wholesaler Pharmag, which is currently in the process of settlement proceedings with its creditors and which had suspended its operations for the last quarter, reopened. The new company concept is to rely on low costs and limited assortment. "The project is called e-Pharm and is based on modem sales with minimal use of human resources," said president and main shareholder of Pharmag Jerzy Milewski. He also stated that re-opening would allow creditors to receive a higher share of their receivables amounting to zł. 50 million, as the firm settles transactions in cash. "Only 10% of pharmacies order drugs via modem and this was also rejected abroad. I am surprised that a company in deep financial trouble intends to use this formula," said Wojciech Rosicki from PGF, the largest domestic drug wholesaler. However, according to sector research company, IMS, roughly 10% of medicines sold in pharmacies generate 80% of their revenues. (Puls Biznesu, pp. 1, 4) M.M.