As the prices health systems are willing to pay are falling, pharmaceutical companies are revising their strategies and considering economic factors earlier in the process of developing medicines. At the same time, they are reducing the number of new drugs in which they are prepared to invest research money.
On average, Western European countries spend between 8 and 12% of their gross domestic product on health care, a proportion that has remained stable despite the economic crises. Compared with alternatives like reducing the money spent on hospitals or restructuring healthcare systems, cutting prices for pharmaceuticals is a relatively quick way to reduce spending.
While countries with strong industrial bases like Germany, France and Britain used to allow companies the greatest flexibility in setting prices, they now emphasize the need to demonstrate value for medicines. The demand for competitively priced medication is high in the whole of Europe. This is where EUROFARM SRL comes in, the company that establishes the important link between pharmaceutical suppliers in Italy and clients abroad who appreciate their favourably priced products and make corresponding cost savings available to patients in their respective markets.
“We have experienced a continuous successful development that has by no means reached its peak yet,” says Maurizio Pasquetti, founder and managing director. “Our most important export markets are Germany, the UK, Denmark, Spain and the Netherlands. One of our new clients is among the largest players in Europe and organizes sales in the whole of Scandinavia, yet another impetus for growth and continuity.”
When Mr. Pasquetti set up his own business in 2003, he could draw on extensive experience as a representative of pharmaceutical companies. This experience proved to be a sound basis for the newly established enterprise. The decision to admit further shareholders in 2010 facilitated EUROFARM’s entry into international markets. “We were able to expand our first, tentative operations abroad and establish a 100% export business,” comments Lorenzo Pasquetti, the founder’s son and responsible for all commercial aspects.
“Moreover, our new partners are pharmaceutical wholesalers who complement our own circle of suppliers.” EUROFARM specializes in the distribution of ethical drugs that are sourced in Italy and delivered in the quantity required by international clients. “We maintain direct contacts to customers and respond to their needs, depending on the market they operate in,” adds Maurizio Pasquetti.
“We also supply pharmaceuticals that are hard to obtain because the available quantities are limited by the pharmaceutical companies. Our clients appreciate the dependability and efficiency of our services, which is reflected in our steadily rising sales figures.”
Fuelled by the recommendation of satisfied clients,annual turnover rose from eight million EUR in 2012 to 13 million EUR in 2013 and is expected to swell up to 20 million EUR in 2014, confirming the company’s place among the three leading businesses of its kind. High service quality and efficiency are by no means limited to distribution and sales, however.
On the suppliers’ side, EUROFARM is reputed for exemplary business operations and conditions. “We always settle our bills in advance and even accept and pay for excess deliveries,” says Lorenzo Pasquetti. “Long-standing, mutually rewarding business relations are the result of our cooperative business approach and provide a sound basis for the future.”