Annual Report Uniphar_Accounts_2016 | Page 14

Operational Reports Manufacturer Services continued Deep expertise at PharmaSource and OstomySource meets market needs Allphar continues to perform In 2016, Allphar saw significant benefit from the Group’s heavy investment in IT and operational systems over the last number of years. Under the leadership of James Quinn, the team developed its organisational structure to drive all changes designed by our in-house business transformation team and the implementation of technology has resulted in improvements in Allphar profitability. Through several key projects Allphar delivered a 2% improvement in margin on a stable turnover and continues to lead the hospital sector with more than 60% market share. In addition to the extension of several key contracts in 2016, with Roche, Abbvie, Sanofi, Actavis and Grunenthal, we also added a number of new clients into our supply chain business which include Baxalta, Pfizer Hospital and Caragen. Our unlicensed medicines business, PharmaSource, continues to thrive based on the knowledge, experience and drive of our team and global network of supplier contacts. Brian Collins and his colleagues have worked very hard to develop several innovative programmes to meet the needs of both retail and hospital pharmacy ensuring the critical supply of certain medicines for thousands of patients across Ireland. The area of greatest potential for PharmaSource has come from the managed access solutions area of this business, where our experienced team works closely with pharmaceutical manufacturers to support them to get their products onto the market. We have seen this area of the business grow by 25% in 2016 and have strategic growth expectations for this business across Ireland and the UK. What does PharmaSource do? PharmaSource is Ireland’s leading supplier of unlicensed medicines and managed access programmes. PharmaSource focuses on 4 key strategic areas: • Unlicensed Medicines, including both solid dose and manufactured specials • Out of Stock Solutions • Managed Access programmes • Market Access support The acquisition of the ostomy business and expert team from Murray’s Medical Equipment Limited in 2016 has allowed OstomySource to become the premier supplier of ostomy products to retail pharmacies in Ireland. The combined effort by the Murray’s Medical team, under the leadership of David Murray, and the PharmaSource team, under the leadership of Brian Collins, delivered a quick and successful integration, resulting in our Uniphar ostomy business growing by 40%. What does Allphar do? Allphar Services provides comprehensive and professional support services across 3 key strategic areas: • Pre-Wholesale • Reduced Wholesale • Third Party Logistics (3PL) 12 | Annual Report 2016 Our supply chain team is one of the most experienced and well respected pre-wholesale teams in the market, combining Allphar’s market knowledge and strong relationship focus with a new emphasis and capability in technology and innovation. Annual Report 2016 | 13