New pharmacy sector reforms pose a serious threat to the business at more than 100 pharmacies in Finland, according to assessments by the Finnish Medicines Agency (Fimea).
The regulator said that 38 pharmacies are at risk of becoming unprofitable, while 79 pharmacies could see their annual revenue dip below 100,000 euros.
According to Fimea, in practice, pharmacies with annual revenue below 100,000 can be considered to be unprofitable — as it would not leave enough for pharmacists' salaries.
Just before the end of the year, the government announced that Parliament and the president had ratified fiscal reforms regarding the pharmacy sector. In part, the reforms will affect how prescription drugs are taxed.
According to the Ministry of Social Affairs and Health, pharmacy retail prices are based on the so-called pharmaceutical tariff system. Pharmacies have had to pay annual pharmacy tax to the state, based on their turnover. According to Fimea, this tax and the pharmaceutical tariff are meant to level income differences between pharmacies.
According to the ministry, the reforms aim to reduce state spending on pharmaceutical reimbursements by around 30 million euros per year — and consumers' pharmaceutical costs by approximately six million euros annually.
The ministry explained the reforms in a press release issued on 30 December, in Finnish and Swedish.
"The new pharmacy tax will be progressive, just like the current pharmacy tax. Pharmacies with a profit margin of less than 250,000 euros will be completely exempt from pharmacy tax," the release read.
OTC sales reform coming
Starting in 2027, the reforms will also allow for sale of some over-the-counter medicines outside of pharmacies. These medications will need to be considered low risk and "carried out safely without pharmaceutical advice", the ministry said.
"The limited selection includes over-the-counter medicines for, among other things, heartburn and constipation and moisturizing eye drops for dry eyes," the ministry explained.
It said that the reforms would allow retailers and wholesalers to sell OTC medicines at discounted prices that deviate from uniform national wholesale price levels.
"However, the provisions on maximum prices for medicines also apply to OTC medicines included in the limited selection. OTC medicines included in the limited selection are also exempt from pharmacy tax," the ministry release read.
Following an impact assessment of the reforms, Fimea found that some municipalities could see their final local pharmacies close. It said that 27 of the pharmacies with turnover of less than 100,000 euros are critical, in terms of regional accessibility of medicines and pharmacy services. In this context, the term critical means that the pharmacy in question is the only one in the municipality or area.
However, Fimea said it could not reveal where the most impacted pharmacies are located, because it is unable to disclose such financial information.
"I can say that they are all over Finland, so they're not concentrated in any particular area," Juha Sinnemäki, Fimea's unit chief, told news agency STT.
