15 July 2010

Farmacevtföretagarna and Alliance Boots have finalised an agreement today for a joint business venture in the Swedish pharmacy market. The first pharmacies are planned to open this autumn under Europe's leading pharmacy brand – Boots. The goal is to create a nationwide chain of pharmacies, owned and operated by individual pharmacy entrepreneurs.

“I am extremely pleased that we can now offer Swedish customers a pharmacy option that combines the professionalism and business skills of the individual pharmacist with the power of Europe’s leading pharmacy brand,” says Lennart Axelsson, CEO of Farmacevtföretagarna.

Ornella Barra, Chief Executive, Pharmaceutical Wholesale Division, Alliance Boots, who is responsible for Boots International activities, comments: “Alliance Boots’ aim is to launch Boots as a strong and trusted pharmacy brand in Sweden, whilst continually seeking ways to offer innovative products and services to patients and consumers. We anticipate that this partnership with Farmacevtforetagarna will enable us to achieve this ambition while also supporting independent entrepreneurship.”

Since Farmacevtföretagarna and Alliance Boots signed a letter of intent regarding the collaboration earlier this year, great effort has been devoted to the preparation, evaluation and provision of support for interested entrepreneurs while also making plans for the establishment of the pharmacies.

“The response from the entrepreneurs has been tremendous. Currently more than 100 entrepreneurs want to start a Boots branded pharmacy and some of them have already made good progress, which means we’ll be able to get off to a quick start. The first pharmacy should be able to open later this year,” says Lennart Axelsson.

Farmacevtföretagarna and Alliance Boots are now forming a new business that is 51-percent owned by Alliance Boots and 49-percent owned by Farmacevtföretagarna. The company will be called Boots Farmacevtföretagarna AB and will provide a number of services to the Boots pharmacies in Sweden. All of the pharmacies in the chain will be fully owned by the individual entrepreneurs.

The agreement also means that Farmacevtföretagarna, which until today has been affiliated with the Swedish Pharmaceutical Association, will now separate from the association. Accordingly, the entrepreneurs will form an organization called Farmacevtföretagarna Ekonomisk Förening (Pharmacist Entrepreneurs Business Association). All entrepreneur-owned pharmacies in the chain will become members of this association, which in turn will control Farmacevtföretagarna’s share of Boots Farmacevtföretagarna AB.

ENDS

Editor's notes

Farmacevtföretagarna was formed by the Swedish Pharmaceutical Association to ensure a vibrant and innovative small business approach in a reregulated pharmacy market. Boots pharmacies owned and run by independent entrepreneurs will provide customer-friendly pharmacies with professional advice and services, a wide selection of health and wellbeing products and outstanding service..

Alliance Boots is a leading international pharmacy-led health and beauty group offering a wide range of products and services to our customers working in close partnership with manufacturers and pharmacists. Our two core business activities are pharmacy-led health and beauty retailing and pharmaceutical wholesaling. Alliance Boots is privately-owned and employs over 115,000* people. Its wholesale and distribution network serves over 150,000* pharmacies, doctors, health centres and hospitals from over 360* pharmaceutical wholesale distribution centres in 16* countries. We operate more than 3,250* health and beauty retail stores in nine* countries, of which just under 3,150* have a pharmacy.

The Boots brand is a key part of Alliance Boots strategy to maximise its value. The Group continues to develop its differentiated product offering, including an extensive range of Boots branded healthcare products, building on the brand’s excellent reputation for customer care and trust.

* Figures stated are as at 31 March 2010, are approximate and include associates and joint ventures.

For more information, please contact:

Lennart Axelsson, CEO Farmacevtföretagarna. Tel: +46 (0)709-39 99 05
Sverker Littorin, chairperson Farmacevtföretagarna. Tel: +46 708 755 309
Yves Romestan/Sanam Conway, Alliance Boots. Tel: +44 (0)1932 871569

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