Dr.Max is a growing pharmacy network, expanding rapidly in Central Europe and beyond. It is owned by Penta Investments, an investment group operating in Europe which has been investing in the healthcare industry since 2002.
Dr.Max emerged in the Czech Republic in 2004, driven by the owners’ mission to disrupt the pharmaceutical landscape. Over the past two decades, its strategic expansion across several European markets, including Romania, Slovakia, Poland, Serbia, and Italy, has fuelled its growth trajectory.
“Currently, Dr. Max pharmacies command over 7% of pharmaceutical retail revenues across these six markets,” says Marie Hinnerová, CEO at Dr.Max Pharma, an entity within the Dr. Max Group that takes care of the development and supply of its own label portfolio. Hinnerová joined the company in 2014 with the task of developing Dr.Max Pharma into a stable and sustainable commercial powerhouse while preserving its entrepreneurial ethos.
Disrupting the market
So, what is behind Dr.Max Pharma’s impressive growth? “From the very beginning, the focus has been on the client. Moving the focus from product to client has truly revolutionised the industry,” affirms Hinnerová.
“We wanted the pharmacists to be comfortable with offering our product as an attractive alternative, believing the ultimate benefit should be reaped by the end user. In the region where Dr.Max operates, a pharmacy’s primary client is a chronically ill patient, usually over 60, a pensioner whose visit to a pharmacy is not driven by choice but by a specific need.”
“Shifting the focus towards the needs of these clients has enabled us to create better conditions for them and to bring to market products and services recognized as value for money, and generally more accessible. This approach has disrupted the industry and its historical perception of the role of the pharmacy.”
Marie Hinnerová reflects that over the years, three individuals have been key for the development of the company’s own label. Its journey started in 2011, under the visionary leadership of Mr Ivan Berkes, who championed the concept of a robust proprietary product line to Penta. Initially, this initiative aimed at ensuring financial resilience while enriching the brand’s identity in providing accessible healthcare solutions.
Spearheaded by Mr Karel Zbroj, the development of the own-label product portfolio under the Dr.Max brand commenced in 2012, initially featuring vitamins and minerals in effervescent and tablet form, but soon after expanding to include over-the-counter medicines. The project’s momentum surged under the stewardship of Mr. Lubos Korbelar, then Commercial Director of Czech Dr. Max pharmacies, who seamlessly integrated these products into the overall brand commercial strategy.
Fast expansion
Based on this successful strategy, Dr.Max’s growth has been further accelerated over the last three years, as the company successfully penetrated the Italian and Romanian markets. Last year, Dr. Max Group, supported by Penta, completed the largest ever acquisition in its history, adding 200 Italian pharmacies to the Dr.Max network.
Hinnerová explains that Dr.Max’s own-label initiative is distinctive within the pharmaceutical industry. “With the average share of own-label products within the non-prescription product range exceeding 20% and growing steadily, this initiative has become intrinsic to the Dr.Max brand experience, setting us apart from our competitors.”
She re-affirms that the company’s success hinges on its client-centric approach, prioritizing their well-being above all else, and addressing clients’ needs comprehensively. “Our pharmacists play a pivotal role in championing our own-label products, demonstrating exceptional dedication to customer care.”
“Importantly, this initiative transcends borders; it’s not confined to the Czech Republic but is thriving across all countries where Dr.Max operates, showing that the concept has a universal relevance. As a result, each country within the Dr.Max Group actively contributes to and benefits from the success of this initiative, further solidifying our position as a leader in providing accessible and effective healthcare solutions.”
Hinnerová admits that managing the exponential growth in a sustainable manner is a challenge. “To navigate this growth trajectory effectively, we have undertaken extensive hiring efforts, with approximately 35% of our 70-strong team having joined within the past year alone. Needless to say, the quality and engagement of our team since our inception has been central to our success.”
Comprehensive client support
From a product perspective, Dr. Max Pharma can boast success across various categories. While the largest turnover still stems from food supplements, particularly vitamins, minerals and probiotics, its portfolio now extends into more sophisticated areas requiring medical expertise.
“We have cultivated robust collections of over-the-counter medicines and medical devices, catering to diverse healthcare needs. Additionally, we have curated standout brands like the Nuance cosmetics and Bebelo baby care ranges, renowned for their exceptional quality and unique formulations, crafted in collaboration with leading global suppliers. These collaborations have positioned our brands as trailblazers within their categories, offering customers unparalleled value across a wide range of high-quality products.”
“Furthermore, in recent years, we have dedicated substantial resources to bolstering our prescription (RX) portfolio. Through our Medreg and Gemax brands, we are ensuring that patients have access to treatments at even more affordable prices,” says Hinnerová.
As the company has no production facility of its own, suppliers are of key importance, and Dr.Max Pharma has forged partnerships with companies all over the world, many of which have spanned over a decade. “These long-standing relationships are a testament to our dedication to fostering the collaborative, mutually beneficial partnerships that have been instrumental in our growth and success.”
The most accessible pharmacy
Today, Dr.Max Pharma is a cornerstone within the Dr.Max Group, delivering on the brand promise of accessible healthcare. With an extensive portfolio, Dr.Max Pharma continues to consolidate its presence across all six countries where the Dr.Max Group operates, enriching the lives of countless individuals with affordable, high-quality healthcare solutions.
Marie Hinnerová affirms that the company is set to further strengthen its position in existing markets and to pursue its focus on enlarging customer-centric services with an omni-channel approach, on further optimization of their state-of-the-art e-commerce platform, and on expansion of their in-pharmacy service offerings for health and wellness.
“The Group’s vision is to make Dr.Max the most accessible pharmacy in every meaning of the word. Guaranteeing the provision of comprehensive care solutions will not only strengthen the brand in its current markets but will pave the way for potential expansion further afield,” she concludes.
