Pharmacies and the Economic Crisis in Portugal: A Case-Study

Purpose: The aim of this paper is to unveil the reasons that have led to the recent deterioration of the economic situation of pharmacies in Portugal, using as the metric of analysis the characteristics in the management of these units. Methodology: The paper opted for a comparison of economic indicators adopted by pharmacies which hold the official SME Excellence distinction and the pharmacies which do not. The strategy applied compares some management ratios, of pharmacies classified as Small and Medium Enterprises (SME) of Excellence in 2011 Findings: Pharmacies with SME classification register a net profit, in terms of sales, higher than Pharmacies with non SME classification. The net profit and the EBITDA of sales prove to be higher, in pharmacies with SME classification than the sales which pharmacies with non SME classification registered. Value of paper: This paper fulfils an identified need to study how pharmacies could be better managed, considering the economic changes that several countries are facing. The study highlight the quality of management practiced as the main differentiating factor in the operational results achieved by pharmacies.