e-Pharma Annual Report

1

2

ePHARMA - INNOVATION AND INTEGRATION IN HEALTH

3

Technology and Knowledge aimed at

all ends of the health chain, developing a

to give access to medicationsand to create well-being sothat the country’s populationcan live better.

integrating

network

Fishing net being thrown at sea, in Florianópolis – SC

4

INDEX

02.

03.

04.

05.

06.

ePharmaprofile

01. A word from the president

page. 08

The businessstrategy

Our businesses • PBM

• Follow • Concierge • GRS • Flex

Our relationships

Authorized network

page. 12

page. 20

page. 36

page. 40

page. 24


5

08.

09.

10.Corporategovernance

Technology

Engagedhealth

07. Humancapitalpage. 44

page. 48

page. 52

page. 56

6

A W

ORD

FROM

TH

E PR

ESID

ENT

01.


7

A “baiana” dress made of handmade lace,

in Salvador – BA

8

We are living a moment of great transformation in the Brazilian health system and complex challenges are being faced by patients and market operators. The new sector legislation, regulated by Normative Resolution 310-ANS, published in 2012, brought about long-awaited proposals and, at the same time, imposed on key players the task to reinvent health in the country, dealing now with the missing link: pharmaceutical assistance coverage.

It is certainly a huge task to be carried out by many people which only a network can fulfill. We believe that pharmaceutical assistance though the PBMs, for their innovation and integration capacity, will play a crucial role in supporting the market in the search for new solutions.

As a leader in the sector, ePharma took a clear position in this direction in 2012. We offer both a complete portfolio of services so that our beneficiaries can have access to the best health choices and a more efficient pharmaceutical assistance management to companies, with intelligent costs control.

However, we always find great opportunities in challenges. In 2012, we increased the expediency and intelligence of our robust technological structure, expanded our business lines and the performance of our clinical staff by introducing a holistic view of health, and developed products to anticipate and prepare the market for this new scenario.

a networkBuilding

in Brazil

A WORD FROM THE PRESIDENT01.


9

LUIZ CARLOS S. MONTEIRO president

We are a Business Intelligence company prepared to meet these new demands. We have a 10-year-health-indicator registry and a formidable and available strategic database to help meet the sector’s needs. We operate with complete information, in real time, and we are, by nature, integrators of the health system ends – physicians, hospitals, labs, pharmacies, private plans operators and public health.

Two new business lines – Flex, a mail order system, and Konnex, a procedure approval platform – show ePharma readiness to support the development of an integrated health market which conciliates the interests of key agents and promotes what is really at stake: the health of the Brazilian people and the universal access to efficient services and compatible prices.

We closed the year 2012 with a growth rate of 32%, keeping up with the company’s fast rhythm in the last 5 years. We do believe that the intensity with which we prepared ourselves for the new health scenario will lead ePharma to a historical expansion year. I would like to share this optimism with those who joined us in this journey – our collaborators, clients, users of our services, partners, shareholders and government bodies. To all of them, my sincere thanks.

10

02.

ePHA

RMA

PROF

ILE


11

Brazilian network,in Brasília – DF

12

We created a unique access to medication model by developing an integrated

netWork among the pharmaceutical industry, pharmacies and paying companies. With our technological expertise in health, We have anticipated the future for brazilians.

Provider of information technology services in health, ePharma operates as the manager of PBM – Pharmacy Benefit Management – Programs. The national capital company was founded in 1999 by professionals and business groups from the sector to promote the integration of pharmaceutical assistance to health.

Leader in the segment, it closed the year of 2012 with 57% of the pharmaceutical assistance market share, corresponding to 24 million of lives covered and a portfolio of 250 client companies. The total volume of financial operations reached R$ 1.02 billion, which corresponds to 2.5% of the drug sales financial operations in Brazil. Company’s expertise and innovation capacity are supported by a team of 150 collaborators, centralized in the head office in Barueri – SP.

The ePharma structure is based on a business model supported by cutting edge technology, an authorized pharmacies network and a strong relationship with pharmaceutical industries. From this tripod, the company develops drug access management and health-promoting projects to meet the needs of private and public organizations.

EPHARMA PROFILE02.

The portfolio of services and products is organized in five lines:

PBM – Pharmacy Benefit Management;

Follow – Access and treatment adherence programs;

GRS – health data integration platform and chronic patients monitoring;

Concierge – advice in preventive health, anti-stress assistance, pharmaceutical, nutritional and medical assistance;

Flex – Specialty Products / Mail Order.


13

The online platform, continuously developed and improved by ePharma, connects, in real time, a network of pharmacies and drugstores all over the country to an authorizing system supported by a robust data bank.

The system provides client companies with a complete, safe and efficient drug benefits management program, preventing losses and rationalizing resources, through the promotion of health preventive actions which led to savings such as reduction in absenteeism and work-related injuries.

With competencies directed to capture the huge opportunities in the Brazilian market, the business model provides access to drugs not only by client company employees,

through the benefits offered, but also to the population in general, through treatment adherence programs created by the pharmaceutical industry and supported by our Follow services. The whole process is supported by a full time call center.

Due to its flexibility and range of data collection, the ePharma system provides a detailed users’ segmentation according to profile and clinical demand, meeting the company’s customization needs and developing reports under the most diverse criteria. The volume of strategic data stored by the system offers a valuable health statistics profile, essential for the elaboration of actuarial analyses, at company level, and, in a broader view, for the integration of health services in Brazil.

THE MODEL’S BASIC PILLARS

Authorized pharmacies network quality and scope.

Consistent relationship with the pharmaceutical industry to constitute a list of drugs.

Technological control to operate with flexible solutions, high performance and availability

Know-how supported by human capital quality.

14

IT

Operations

Administrative - Financial

Pharmaceutics

Clinical

ORGANIZATIONAL STRUCTURE

EPHARMA EVOLUTION – NUMBER OF BENEFICIARIES BY SEGMENT

AUTHORIZED VOLUME BY THE PHARMA SYSTEM

Corporate: Benefit offered by a companyMass: Services attached to insurance companies and assistance companies - AffinityPharma: Pharmaceutical industries adherence programsPublic: Popular Pharmacy ProgramHealth: Services attached to health operators

(in millions of reais)

20112010 2012

446

693

1.020

Segment 2007 2008 2009 2010 2011 2012

Corporate 545.863 593.073 633.984 633.215 642.287 1.563.761

Mass 1.259.518 1.480.550 1.757.781 3.222.034 5.216.162 4.068.751

Pharma 1.868.873 4.790.942 13.471.413 11.471.102 10.872.007 14.336.558

Health 3.049.743 3.132.241 3.459.977 4.494.472 4.831.881 4.493.501

Total 6.723.997 9.996.806 19.323.155 19.820.823 21.562.337 24.462.571

EPHARMA PROFILE02.

Market Health

ePharma

Corporate

Commercial

After Sales

Retail

338

2009


15

REVENUES PARTICIPATION - 2012

EPHARMA CALL CENTER STRUCTURE

Technical Support

Clinical Support

Clients Services

• Help Desk for pharmacies

• 8 positions/7 days a week

• 14.140 calls/month

• Patients monitoring

• Health professional; Nursing, Psychology, Nutrition and Medicine

• 2.621 services provided

• 357 calls/months

• Pharmaceutical industry programs services

• Beneficiaries hotline

• 41 positions, 5 days/week

• 54.987 calls/month

Health

GRS

Concierge

Solutions

Laboratories

Mass

11.9%Corporate

12.8%Follow

23.8%

2.7%

1.3%

3.0%

0.6%

0.4%

Authorized

43.4%

16

TIMELINE

ePharma Milestones

EPHARMA PROFILE02.

1999

ePharma Foundation.

2000

PBMlaunch.

2001First contract triggers the company’s business trajectory.

2002 2005

Creation of the Follow program.

Implementation of the HRM solution for risk analysis and health management.

2004 Break into the HR corporate market.

Mission

Provide innovative solutions in pharmaceutical assistance and health actions, generating knowledge and results.

Vision

Through a vocation for innovation and reliable partnerships, contribute to give more people access to better health conditions.

Values

• Ethics and transparency • Innovation• Respect to life• Health• Relationship based on trust• Performance excellence• Proud to be ePharma

PRINCIPLES


17

Due to its technological and capillarity power, ePharma services play a structuring role in the national access to medication. In a territory with continental dimensions as the Brazilian, characterized by strong development contrasts, the company’s online platform maintains connected, in real time more than 17 thousand points of sales. The make up a network present in 1.885 counties located in 26 states and the Federal District. The network is 107 delivery centers in 16 states and 54 counties. Our authorized network guarantees the necessary scope and quality to meet the requirements and the special needs of companies around the country. Despite this large network, the platform constituted by ePharma is prepared to incorporate new establishments in any part of national territory.

GEOGRAPHIC SCOPE

2007 2010 2011

2006 Launch of the Popular Pharmacy Program supported bythe ePharma system.

Trading of medications authorized by the ePharma channel was over R$ 1 billion. Implementation of the Kennex solution for complementary health benefits management. Accreditation of pharmacies reaches 17 thousand. Complementary Health operations start to comply with Normative Resolution 310, released by ANS- National Health Insurance Agency, which provides for sales of medication plans.

2009 ePharm ranked among the 100 Best Companies to Work For by the Isto é magazine.

Expansion of the authorized network reaches 10 thousand pharmacies.

Launch of twobusiness lines: ePharma Specialty Products andFlex Programs.

2012

Points of sales in Brazil by region

1.537

4.953

9.021

1.750

601

Petrobras hires PBM ePharma, accelerating the adherence of other large corporationsto our company’s products.

18

03.

THE

BUSI

NESS

ST

RATE

GY


19

Soccer net, in Rio Janeiro – RJ

20

THE BUSINESS STRATEGY03.

More than half of the Brazilian population has gained access to goods and services in the last decade. In the health sector, the wealth increase in all regions of the country and the growing expansion of the middle class had an impact on the demand for quality services and competitive prices.

The challenge brought by the new population profile is beginning to be responded by Normative Resolution 310, published by the Ministry of Health. By regulating pharmaceutical assistance operations as complementary health operators’ products, like in the dental assistance, for instance, the State is paving the road for a rational solution to the health market dilemmas. There are 50 million health plan users waiting for a practical and accessible pharmaceutical assistance system – PBM.

In the corporate sector, pharmaceutical assistance is becoming a consolidated sector due to a clear pressure of collaborators to include the benefit in the collective conventions. The first to adopt it was the Chemists

Union in 2009. Currently, great unions, such as the Oil Industry Workers, Civil Construction, Textile and Post Office, provide for

this clause in collective negotiations.

However, the strategic potential of PBM goes beyond access to medications. The technological platform responsible for the PBM card authorizing system is capable of becoming the connecting element of all market agents, playing the role of integrator of these several ends. The application of the authorizing system in the complete health cycle – doctor’s appointment, exams, hospital admission, and purchase and use of medications – anticipates

NetworkHealth

investment


21

OUR STRATEGY

the integration scenario of the market as a whole, the true NETWORK. With this movement we can finally have all the elements to make the complete stratification of users, and then arrive to a fair services management program.

Each person is unique in his/her health condition. With the possible differentiation offered by the new system, we can best design the eligibility of the beneficiaries. The stratification will allow specific coverage for the pregnant woman, healthy person, people with chronic diseases, who need intensive and special care, children and for each one of us. Finally, we will be able to put all our efforts into the sector professionals’ main mission which is health prevention, caring for people’s well-being and quality of life.

With the expertise of those who detain great leadership in the segment, we intend to become the integrating element of this new health sector architecture. ePharma already has an active integration model ready to be applied to the whole extension of the sector, with large capacity for intelligent information processing, our main expertise. We deal with a high value data universe on the health needs of each person, and at the same time, of large groups, communities and populations. We have the technical and technological competence to transform all the data registered in the ePharma PBM card in knowledge. The market is waiting for this solution.

We anticipated the needs of agents in the sector with the creation of Konnex, an electronic authorizing system for a complementary health network. With this system, we are ready to integrate health management with flexibility, safety and our robust technological platform. This way, we will reach our long pursued goal. With Konnex, early detection and preventive care in health are not evaluated by cost anymore, as it is done today, but they reach the status of investment, with all the positive implications that this new mentality can bring to the country’s health system.

22

04.

OUR

BUSI

NESS

ES


23

Electronic circuit network,

in Alphaville – SP

24

networksOur

Health systems around the world, and in special in Brazil, are part of a scenario that puts in checkmate the current model: fragmented approach, verticalized management and disconnected information. The complexity of the ongoing world transformations – fast population aging, technological advances, greater incidence of chronic diseases and the growing demand for quality by consumers – demands innovative and urgent answers from the sector’s agents.

When companies cannot rely only on their own competitive advantages to respond to challenges, the need to develop partnerships in search for solutions becomes evident: a network.

The current moment in Health demands a set of competences only achieved through partnerships. During market reinvention times, networks are strategic answers to increase companies’ capacity to innovate and become more efficient.

The information flow made possible by sharing competitive advantages, a natural process in sectorial networks, is today an essential input to health services. We understand that pharmaceutical assistance, with its capacity to generate information, has become a vital link in the process of sector integration.

ePharma contributes to this search for solutions and helps create this new scenario with the valuable databank it develops every day and by developing network partnerships with pharmacies, pharmaceutical companies, health operators and client corporations.

OUR BUSINESSES04.

IT IS OUR COMMITMENT TO TREAT EACH PROJECT, EACH CLIENT, AND EACH BENEFICIARY AS UNIQUE. AND, AT THE SAME TIME, EACH AND EVERY ONE AS PART OF THE WHOLE, OF THE NETWORK.

24


25

FLEX

PBM

GRS

CONCIERGE

FOLLOW

25

26

OUR BUSINESSES04.

The networkof pharmaceutical benefits

Gateway to innovative health management, the ePharma medications benefits management card combines access facility and safety, service quality and costs control. The system is prepared to provide services to the public originating from corporate programs, health plans operators and public health programs.

In the corporate sector, the flexibility of the system, developed internally, and its customization reach, support our commitment to human resources policies already adopted by companies and to the control of finance resources destined to the benefit. Integrated with health management, the card’s authorizing system controls each rule

at any hour, We guarantee access to medications to 24 million people.

established by the company, from a number of personalizing criteria which includes financial limits, subsidy system, and integration to management systems, list and quantity of drugs and authorized network profile.

There are more than 17 thousand pharmacies associated with our system and a list of referential drugs with more than 2 thousand presentations, anchored in discount agreements that we maintain with the pharmaceutical industry. To format the program with safety and efficiency, our multidisciplinary team of doctors and pharmacists helps clients in all aspects regarding


2727

his administrative model, a special service that extends throughout the contract. Benefits operations are covered by reports written in the most varied formats to support health assistance management processes.

In addition to the retail network, the program is connected to 107 distribution systems integrated to the ePharma system, which is responsible for delivering the medications. It also gives access to the Specialty Products program through Flex, supported by a call center specialized in

providing multidisciplinary services to companies and patients.

In the public sector, the ePharma card played a fundamental role in the acceptance and expansion of the Popular Pharmacy program, launched in 2006 by the federal government. The pharmacies network structured by us since 2000, and our online authorizing system that connects the network were the basis of the access of millions of Brazilians to medications subsidized by the public health system (see details in A network for all).

28

A NETWORK FOR ALL

The main objective of the Popular Pharmacy program, created in 2004 by the Federal Government, is to give the population access to basic and essential subsidized drugs. After being implemented in the public dispensation sector, the program’s coordination saw the need to expand exponentially the network’s points of sales to meet intended universalization targets. Without the participation of the country’s pulverized structure of drugstores, the Popular Pharmacy program would not take off.

The answer came in 2006 with the Popular Pharmacy to sell retail a list of subsidized drugs, with discounts of at least 90%. However, there was a logistics challenge to integrate thousands of pharmacies in an online and real time system to get purchasing authorization from the government.

The pharmacies themselves proposed a solution, for they had been working with the ePharma pharmacy assistance authorization

OUR BUSINESSES04.


29

system since 2000. By acknowledging the existence of the model developed by the company, ready to be expanded

to as many stores as necessary, the government adopted it as the Popular Pharmacy program control and management

benchmark and was able to start the service immediately. Only some months later, other technology companies were able to

develop and provide similar systems for the program.

At the end of 2012, there were 13.500 points of sales approved by the government, representing mostly by private pharmacies in the national market thus constituting a public program with efficient access to drugs prescribed by the population, by offering more than 2 thousand subsidized drugs. Transactions carried out by this channel are a relevant part of the company’s operations, involving the dispensation of more than 9 million medication units to more than 3.5 million beneficiaries.

The drugs federal program tried to correct a historical distortion in the Brazilian health system, characterized by the high cost of pharmaceutical products and lack of access incentives. Expenses with drugs, especially in low income families, would represent 76% of the total budget with health. For ePharma, to participate as an integrating element in the Popular Pharmacy program represents a challenge by the program’s magnitude and the demand for safety and control. Above all, with this participation, the company assumes a social commitment which is in the essence of our business – to support the government in the process of expanding access to drugs in Brazil.

30

ePharma has become an efficient pharmaceutical industry branch by incorporating our advanced electronic device for treatment and memberships programs management. In special, the ePharma system made safer the everyday life of chronic patients with chronic diseases, by making treatment maintenance possible. Through our system, patients have access to the network of 17 thousand pharmacies

connected in real time and benefit from discounts offered for drugs in general. Versatile and powerful, the system adjusts each project to the company’s specific needs and to those of the drugs themselves through customized reports with results evaluation and precision management. It also allows an efficient retail product replacement process.

The Follow program provides the whole chain of needs to the pharmaceutical industry so that it can launch and manage products through compliance programs.

network

Accessand results

pharmaceutical industryprograms management

OUR BUSINESSES04.

taking safety and convenience to aproximately 15 million patients.

30


31

Well-informed people making better health decisions

Thinking as facilitators, we created the Concierge Program to develop people’s autonomy and initiative in relation to their health. The service provided by phone, is organized as an information and counseling center conducted by qualified professionals. Among the key themes are sedentary lifestyle, bad eating habits and the inadequate use of drugs, directly responsible for the increase in chronic diseases in the general population and, mainly, in corporations. A team made up with doctors, pharmacists, psychologists and nutritionists

information channeland health guide

is responsible for transmitting preventive and health promoting guidelines and follow the involvement of the beneficiary with the treatment and change of habits processes. Among the services offered by the program are nutritional and pharmaceutical assistance and stress relief. Medical orientation services try to answer simple questions, such as correct exam procedures and give instructions on adverse health situations, also providing support during risk situations.

network

Healthcare

32

OUR BUSINESSES04.

technical and technological competence transforming data into knoWledge for healthmanagers

Questions such as lack of preventive care, treatment evasion by patients with chronic diseases and the rising costs of expenses are issues that worry professionals, managers and citizens alike. In the search for innovative solutions for the challenges, we developed the GRS – Health Risk Management –, an advanced risk management platform which integrates data from several sources. To give it an efficient tool character, we added to the databank consulting services and the nursing call.

By determining the profile of the needs and risks of a determined group of people, all subsequent actions will count with the support of the nursing call program, relationship center operated by health professionals. The focus is specially on the monitoring of chronic patients, to minimize lack of treatment compliance, one of the factors with greater impact on health expenses. Similarly, incentive to preventive care, such as vaccination and assistance to smokers deserve special attention from the system.

Though this program, our multidisciplinary team of health professionals has the complete control of the monitored group and is able to identify difficulties, risk situations and lack of persistence with drug use and therefore propose health care actions.

health riskmanagement

network

Healthpromotion


33

ePHARMA: VIVA MAIS, VIVA MELHOR.

special care patients demand an equally special treatment.

Patients with chronic diseases and with complex and disabling diseases have received, from more advanced health systems, an approach that goes beyond drug management. It includes care management during dispensation and clinical and pharmaceutical support. ePharma introduced this concept in Brazil, with the implementation of Flex, our online pharmacy delivery system and support services to patients, with an innovative logistics model.

Besides helping with the direct purchase of high complexity and continuous use drugs, the service offers benefits such as the forwarding of drugs to the patient’s home and special discounts, as a result of negotiations with the pharmaceutical industry in order to expand the access to drugs. The system contributes by involving the patient in the treatment and by preventing eventual problems with the access to drugs. A committed team of pharmacists follows the prescriptions and guarantees delivery and the correct use of the product.

network

Access to thebest in health

34

05.

OUR

RELA

TION

SHIP

S


35

A safety net

36

These are some of the 250 ePharma clients which are becoming true references in corporate health:

OUR RELATIONSHIPS05.

networkThe trust


37

ePharma maintains a committee of doctors and pharmacists who periodically update this form to guarantee adequate prescriptions in terms of quality and cost benefit.

PRODUCTS 954

FORMULATIONS 2.318

ACTIVE INGREDIENTS 460

THERAPEUTIC CLASSES 13

SUBCLASSES 66

EPHARMA REFERENTIAL FORM

38

06.

AUTH

ORIZ

ED

NETW

ORK


39

Bobbin lace, in Florianópolis – SC

40

AUTHORIZED NETWORK06.

more than 17 thousand pharmacies around the countryThe consolidation of the ePharma drug management virtual effort takes place in pharmacies that have direct contact with the beneficiary. With the network connectivity provided by the ePharma card, distance limitations were reduced and the points of sale become the last stage of this broad operation to integrate the Brazilian frontiers to a quality health structure.

Including the best pharmacies and drugstores in the country and 107 delivery centers, our authorized

network guarantees range and the necessary quality to meet the requirements and the special needs of companies around the country. In addition to this large network, the ePharma platform is prepared to incorporate new establishments in any part of the national territory.

These are some of the pharmaceutical networks which are part of the ePharma authorized network. All together there are 17 thousand points of sale all over the country.

These are some of the pharmaceutical networks which are part of the ePharma authorized network. All together there are 17 thousand points of sale all over the country:

network:The partnership


41

more than 17 thousand pharmacies around the country

41

42

07.

HUM

AN

CAPI

TAL


43

The Collaborators Network

44

HUMAN CAPITAL07.


45

Born in the middle of the New Economy era, ePharma incorporated the spirit of the time into their management, technology and relationship with professionals. We are 150 people with a strong capacity for innovation and entrepreneurship, in an environment based on meritocracy, autonomy and stimulating challenges

We have a multidisciplinary team made up of professionals from the management, technology and health areas, with solid qualification and experience. The health team includes physicians, pharmacists, nutritionists and nurses, who can help clients to find the most adequate solutions for their reality. Customized, these solutions are transformed in services and products through the talent of Information Technology professionals.

To meet the requirements of our business model, which involves creativity, expediency and a 24-hour service, our team sees ePharma as company of integral solutions and participates actively in the customization processes with clients.

investing in the best professionals and their permanence as a competitive edge

networkThe Collaborators

46

08.

ENGA

GED

HEAL

TH


47

Lace sold in the Free Market, in Olinda – PE

48

ENGAGED HEALTH08.

Volunteer work

The negative impact of precarious living conditions on health has motivated ePharma to support the “A Roof for My Parents” movement, idealized by a NGO led by young people. The project stimulates the volunteer participation of companies to build houses in socially deprived areas. For the company, besides being a shelter, a house represents access to infrastructure goods and public services, essential to live with quality and , mainly, with health. Access to health is our “raison d’etre” and that’s why we subsidize the materials needed for this initiative.

The second reason for engaging ourselves in the initiative is the opportunity to implement volunteer work among our collaborators, an attitude that strengthen values and beliefs. We created an internal participation campaign, Solidary Health, and, for two days in June

2012, ePharma collaborators were in the county of Pirituba-SP involved in a social and local transformation initiative.

Culture

The understanding of life’s meaning and the search for happiness are the background of the documentary The Greater I, a project sponsored by ePharm. Inspired by this self-awareness, the film heard 30 personalities from different areas, including spiritual, intellectual leaders, artists and sports people. Highly distinctive people such as the physicist Marcelo Gleiser, surfer Carlos Burle, Buddhist monk Coen and politician Marina Silva, among others were also interviewed. Directed by Fernando and Paulo Schultz, the documentary was shown in several audiovisual festivals and in commercial movie houses.

supporting those Who Want to give better life conditions to all people

network

The social and cultural


49

Solidary Health: with work and solidarity, our collaborators help to build dignified homes for families

under social risk conditions.

Images from the documentary

The greater I: A documentary on life’s fundamental issues and the essence of human beings.

network

50

09.

TECH

NOLO

GY


51

The Integration Network, in Alphaville – SP

52

TECHNOLOGY09.

More than 105 thousand drug purchasing transactions use ePharma’s technological platform and our authorized systems on a daily basis. There are 17 thousand pharmacies connected in real time and ready to identify and provide services to 24 million active ePharma PBM card holders (see the table Operational Cycle Stages) in an average time of three seconds. Managed by cutting edge servers, transactions are registered and stored in a databank, developing a strategic collection of segmented information about the target public.

Authorizing system operations are managed by cutting edge servers. Registration and storing of transactional data generated by the authorizations and sales are totally supported by the most modern

the medication you need, from any place in the country, in less than 3 seconds.

technological solutions available. ePharma technological park works with redundant and protection systems to prevent invasion and data traffic confidentiality. The safety level and flexibility of our systems and software are developed to meet the needs of the unique needs of our clients, making the broad parameterization of health programs possible.

networkThe technology


53

The physician prescribes the drug.

In the pharmacy, the beneficiary presents the prescription and the ePharma card.

The pharmacist feed the card number and prescription data into the system

The pharmacy requests authorization through the system. The system compares the data sent by the pharmacy to the registered eligibility rules for the beneficiary.

The system responds to the pharmacy authorization request.

The request number is registered at the cashier. Sales information is forwarded automatically to ePharma.

1 23

4

5

6

OPERATIONAL CYCLE STAGE

54

10 .

CORP

ORAT

EGO

VERN

ANCE


55

The Ciro de Nazaré religious procession,

in Belém – PA

56

CORPORATE GOVERNANCE1 0 .

ePharma searches for the continuous improvement of its Corporate Governance, based on the principles of transparency, ethics, legality and business sustainability. Aiming at business continuity, ePharma is permanently creating value to shareholders. We submit to the equal treatment principle among shareholders and we are transparent in regards to our financial statements and proactive in disseminating information. Company results are submitted to external auditing.

SHAREHOLDERS COMPOSITION

Dupar Participações S.A. Luiz Carlos Silveira Monteiro57.6% 14.9%

Others5.3%

Roberto Faria 15% 7.2% Drogaria Araujo

network

Corporateefficiency


57

ADMINISTRATION BOARD

This collegiate deliberative body is responsible for formulating Company’s general business policy, including long-term strategies. It is also responsible for, among other statutory responsibilities, appointing directors and monitoring and supervising management. On December 31, 2012, the Administration Board was composed by 5 shareholders representative members.

Deusmar QueirosFounder and CEO of the Pague Menos Group, created 30 years ago. The company constitutes the largest chain of pharmacies in Brazil in revenues and number of stores. Bachelor’s Degree in Economics by Universidade Federal do Ceará (1973) and a post graduate degree by the Graduate School of Business Administration, New York. Started his career at IBM and worked in the financial market in 1971 at the Credimus Distribuidora de Valores. Professor and coordinator at Universidade de Fortaleza.

Roberto Faria Distrifar Founder and CEO. Ex-owner of Drogasmil, sold to Casa Saba (Mexico) in 2009, after having acted as president of Faria and Intermed for 18 years. An Information Technology graduate by Universidade Federal do Rio de Janeiro, also attended a MBA at PUC/RJ.

Modesto AraujoFounder and CEO of Araujo Drogaria, the largest drugstore chain in Minas Gerais in revenues and number of stores, with almost 100 points of sales. A Business Administration graduated by Fumec/MG, also attended a MBA at UNA/MG.

CORPORATE GOVERNANCE STRUCTURE

58

Executive Board

Epharma Directors are legal representatives, responsible for the business administration and implementation of Company’s policies and general guidelines. Selected by the Administration Board and dismissed from the position at any time by the same body.

Luiz Carlos S. Monteiro President and founder of ePharma, created in 1999. Physician member of the Brazilian Medical Association since 1978, president of the Associação Paulista de Cirurgia Pediátrica (Pediatrics Surgery Association of São Paulo) and director of the Brazilian Medical Association. For 15 years, acted as a Unimed System director.

Marcos BrêdaBusiness Director at ePharma since 2009 after holding the Sales Manager position in 2002. Sales Director of Coloplast for seven years. Business Administration degree by FFCL-RJ and a MBA by ESPM/SP.

Bruna De VivoPharmaceutical manager of ePharma since 2002, with experience in the PBM market since 1999. Active participation in the São Paulo Pharmacy Council. Pharmacy Degree by Unisantos/SP and MBA by PUC/SP.

Pedro OliveiraClinical Director at ePharma since 2004, with 27 years of experience in health management. Member of the American Urological Association-AUA since 1989 and participant of Sunnybrook Health Sciences Centre, Toronto, Canada since 1992. Physician member of the Brazilian Medical Association since 1980 with a Medicaster degree by São Camilo/SP.

1 0 .

Marcos InocencioFinances and Operations director of ePharma since 2001. Planning manager of Carrefour. Worked for Monsanto and Chase and Andersen. Business Administration degree by PUC/SP, Accounting by Unip/SP and a MBA degree by IBMEC/SP. Holds a Master’s Degree in Business Administration by PUC/SP.

CORPORATE GOVERNANCE


59

The key ePharma internal guideline document expresses the Company’s vision on how to contribute to the ethical behavior in society. It includes the procedures that must be observed by all collaborators, executive board and shareholders and regulates the relations and activities with clients, suppliers, authorities, and users of our services .Based on a preventive and guiding approach, the document highlights questions that demand special care in relation to company and society’s principles and current legislation.

In order to foster communication and answer the questions pointed out by the Code, we instituted the Ethics Committee. The body, formed by directors, managers and collaborators, receives the complaints and take the adequate measures to guarantee a satisfactory resolution in compliance with ePharma values. All information is treated with confidentiality and there is a specific commitment with integrity of the communication author.

ETHICS AND CONDUCT CODE

64

CREDITS

ACKNOWLEDGEMENTS AND INFORMATION

-

Head Office ePharma – Innovation and Integration in HealthAv. Mamoré, 989 – 9º andar – AlphavilleCEP: 06454-040 – Barueri – SPwww.epharma.com.br

ContactsLuiz Carlos Silveira MonteiroPresident

Marcos Inocencio Financial and Operations Director

Marcos Brêda Business Director

Pedro Oliveira Health Director

Independent AuditorsErnst & Young Auditores Independentes S/S

Creation and Coordination Concêntrica – Communication and Content

Editorial Office Maria Inês Araújo GodinhoThiago Zanetin

EditingPaulo de Jesus e Dida Dourado RevisionAdriana Duarte

Graphic ProjectGabriel Siqueira

e-Pharma Annual Report

Documents

public health

epharma innovation

health chain

brazilian health system

integrated health market

holistic view of health

best health choices

epharma readiness