Changes affecting every segment of the supply chain now require reconsideration not only at an operational level but also strategically. We discussed these processes with Judit Füzesi, CEO of Hungaropharma Gyógyszerkereskedelmi Zrt.
Is this a structural transformation or just normal industry movement?
Judit Füzesi: The pace has definitely accelerated. At the same time, economic pressures, price erosion, regulatory rigidity, and evolving customer models and needs should no longer be seen as exceptional—they are now part of the natural framework of operation. The key question is the quality of decisions made in this environment. Today, I believe three factors have become primary: innovation capability, business ethics, and corporate responsibility. In other words, how can industry players operate sustainably, responsibly, agilely, and distinctively in this complex and often contradictory environment?
Behind the scenes, significant shifts are occurring in business models and ethics, as well as market etiquette and collaboration. We also cannot ignore changes in professional standards. What I increasingly see missing are business values rooted in human qualities. We are not dealing with a traditional product market; we are dealing with highly specialized, almost living organizations. Pharmacy is fundamentally a trust-based relationship between people. This requires human presence, genuine connection, and chemistry—not just standardized processes or profit-driven operations. Ideally, this should be reflected in the business side as well. If operations rely solely on efficiency and volume logic, a conveyor-belt mode of operation can develop, which risks hollowing out professional content over time.
Which risks are the most critical today: financial, structural, or supply-related?
JF: It depends on the perspective. From a macroeconomic standpoint, structural issues are the most important. From a financing perspective, government responsibility—particularly the sustainability of inpatient and outpatient care—is key. From the perspective of market functionality, supply chain stability is the most critical. Today, supply chain issues go far beyond persistent product shortages, including the shift of certain products from retail to institutional funding, and the longer-term question of which types of players remain active in the retail pharmacy segment.
If the retail market evolves toward large-volume business models, the logical question becomes geopolitical: who will operate in smaller towns where there is insufficient business incentive?
JF: My conviction is that continuous development and self-improvement is necessary. Every player must move forward, whether in small or large steps. This is a fundamental principle for Hungaropharma. Our developments are primarily technology-focused, with digitalization at the core. We also have logistics and business initiatives across the group that keep us on a growth trajectory alongside our daily retail partners. It is a shared journey: we can lead them, but they must move with us.
How adaptable are pharmacies to this changing environment? Do they have room to stay on this ’journey’ and innovate?
JF: Both yes and no. Large investments can be challenging for smaller pharmacies in terms of return on investment, yet there are business and operational models that can achieve meaningful results with fewer resources. Constraints come not only from return considerations but often from professional and regulatory requirements. Pharmaceuticals are a special category, and pharmacies are primarily healthcare providers, not just retail units. Many solutions standard in other retail segments are not applicable in pharmacy. The real question is what new operational models and solutions can emerge within the long-awaited framework defined by the profession.
Is there a workable model?
JF: The market structure is changing on multiple levels. “Big therapies” have shifted toward biosimilars and increasingly advanced diagnostics, often moving into institutional care, while public demand for self-care, prevention, and health consciousness grows. Prevention is gradually becoming a societal expectation, creating new opportunities for pharmacies. Let me highlight that innovation is not only technological—it can also take economic and professional forms. There is significant untapped potential in consciously strengthening pharmacists’ competencies, which could lead to new services. Activities that bring patients closer to pharmacies and business models that transform a pharmacy into a more comprehensive healthcare provider can have a major impact. Even small expansions of competencies affect operations and foster professional development and collaborations that support patients and consumers, reshaping current pharmaceutical supply patterns.
How do franchises and other pharmacy networks shape the retail sector?
JF: Today in Hungary, more than 70% of pharmacies are members of a franchise or franchise-type network. These networks provide business advantages that are significantly more costly and difficult for independent pharmacies to access. While structured and clearly defined frameworks can offer a sense of security, there are considerable differences in the contractual terms of individual franchise systems.
A key professional entity within the Hungaropharma Group is Patika Management Kft., the brand owner of the Alma Gyógyszertár and Gyöngy Patika program networks. One of the most distinctive features of these two networks is that they ensure 100% ownership independence for participating pharmacies. The brand owner supports privately owned pharmacies primarily in pharmacy marketing and commercial activities, with a strong focus on business development.
An additional advantage of these two prominent domestic pharmacy brands, compared to international models, is that they are often better suited to the operational realities of smaller markets with unique local characteristics, thereby supporting the increasingly important need for differentiation. This is further reinforced by the fact that both networks received the Excellent Consumer Brand award in the MagyarBrands 2025 program, where brand awareness exceeded 69% and consumer preference reached 84%.
Does international standardization harm the retail sector?
JF: In my view, for pharmacies, which are predominantly small- and medium-sized businesses owned by pharmacists, this represents not only an issue of identity but also a serious business risk. Following international trends is far from the same as complying with international standards or operating according to them. Based on the standards of multinational companies, domestic pharmacies could be reduced to mere product distribution points or points of sale (POS), losing the added value that distinguishes them from other sales channels.
At the same time, it must be acknowledged that pharmaceutical retail still has room to catch up in terms of commercial techniques. As I mentioned earlier, the segments of the pharmaceutical market are also undergoing transformation, and if pharmacies fail to strengthen their role in the meantime, there is a real risk that they will be pushed out of the highly qualified, premium segment.
International know-how remains mutually beneficial only as long as it is compatible, to some extent, with the market structures and specific characteristics of the target country. However, once a certain level of uniformity is reached, that balance can be disrupted. Over time, the unique features of domestic markets often require tailored solutions — in other words, differentiation — which may not be compatible with the operating principles of international standards. In such models, not all participants will necessarily emerge as winners.
The market must therefore consider whether Hungary’s pharmaceutical retail sector should operate according to large European models (such as Boots or Dr. Max), or other imported models, or instead adopt a similar logic while maintaining its own distinctive characteristics. Today, beneath the surface, despite operational and innovation constraints, a broader professional, business policy and customer relationship transformation is underway — and one can only hope that this process does not ultimately lead to the erosion of the domestic pharmaceutical retail market.
This article was first published in Pharma Industry Review 2026 / 1.
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