Boots looks to add drugs for growth in Europe

BOOTS is in talks with two drug companies about transferring their drugs from the prescription to the over-the-counter market, as part of its strategy for expanding its healthcare business in Europe.

In a presentation yesterday, Boots outlined its strategy to expand in Europe by adding new products to its list and distribution networks in countries where it has limited, or no, representation.

The over-the-counter market is expected to grow as governments try to cut healthcare costs. Boots estimates it could be worth pounds 12bn by the end of the century, compared with pounds 8.1bn last year, and hopes to boost its share of the market from about 1.6 per cent last year.

The two drugs under discussion are in the therapeutic areas it intends to focus on - skin-care, analgesics, cough medicines and eye- care. Although it warned that discussions might come to nothing, David Thompson, finance director, added: 'We do see that there will be many prescription- only to pharmacy switches which may come our way in the next few years. We are seen as attractive because we are not tied to any (drug company).'

The group already sells 11 of its products in Europe, including Strepsils, Nurofen and Optrex.

But Barry Clare, managing director of Boots Healthcare International, said any of the 2,000 Boots brand products in its chemist shops could be available for distribution overseas.

The division is small, contributing pounds 155.3m of sales and pounds 6.6m of profits to last year's sales total of pounds 4.2bn and pounds 415.9m profits. But David Thompson, finance director, said 'We look for it to be the main engine of growth well into the next century.'

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