Glossary

ABRAFARMA

Brazilian Association of Pharmacy and Drugstore Chains. It's a national representation entity that includes the sector's largest companies. It seeks to promote health and well-being in Brazil through developing pharmaceutical retail and strengthening its members.

Anvisa

National Health Surveillance Agency. It promotes the protection of the population’s health by executing sanitary control of the production, marketing, and use of products and services subject to health regulation, including related environments, processes, ingredients, and technologies. (Source: Anvisa)

B2B

Abbreviation for business-to-business. Model in which a company sells products or provides services to other companies.

B2C

Abbreviation for business-to-consumer. Model in which a company offers a service or product to the end customer.

B3

Brasil, Bolsa, Balcão (old BM&FBovespa).

CMED

Medicines Market Regulation Chamber. It's an interministerial entity responsible for the economic regulation of the drug market in Brazil. (Source: Anvisa)

CVM

Securities and Exchange Commission. It is an autonomous entity linked to the Ministry of Economy, which inspects, regulates, disciplines, and develops the securities market in Brazil. (Source: CVM)

EBITDA

Non-accounting measurement prepared by Management, calculated in compliance with the Circular Letter CVM/SNC/SEP No. 01/2007, consisting of net income plus net financial expenses, depreciation and amortization, income tax, and social contribution. EBITDA isn't a measure recognized by accounting practices adopted in Brazil, doesn't have a standard meaning, and may not be comparable to measures with similar titles provided by other companies. EBITDA shouldn't be considered a substitute for profit (loss) or operating income, an indicator of operating performance or cash flow, or a measure of the liquidity or ability to pay our debt.

Generic Medication

It contains the same active ingredient(s) in the same concentration and pharmaceutical form as the reference drug. It is administered the same way, with the exact dosage and therapeutic indication, presenting efficacy and safety equivalent to the reference medication, thus being interchangeable. (Source: Anvisa)

Branded Medication

Medication identified by doctors and patients by its commercial brand, also called reference medication. They are innovative products registered and commercialized in the country, whose efficacy, safety, and quality were scientifically proven by Anvisa at the time of registration. (Source: Anvisa)

Similar Medication

Medication that contains the same active ingredients as its reference medication and is identified by a brand or commercial name. It can only replace its respective reference medication after passing laboratory tests that prove its equivalence. Those that have already gone through this process are called "similar interchangeable drugs". (Source: Anvisa)

Over the Counter Products

Both brand and generic products and health products available for free sale, meaning they are sold over-the-counter in the pharmacy without the need to present a medical prescription.

PBM

Abbreviation for Pharmacy Benefits Management. In Brazil, these programs, commonly known as Medicines Benefit Programs (PBMs), allow consumers to buy medicines at a better price. Pharmacies that wish to offer these discounts must be previously homologated by PBMs.

SKU

Abbreviation for Stock Keeping Unit. It's the unit of measure in which inventories can be managed. Generally, it's associated with an identifier code, which makes it possible to recognize when a particular product was sold and delivered, for example.

Same Store Sales (SSS)

Abbreviation for Same Store Sales. It's the revenue from pharmacies in operation for over a year.

Mature Store Sales (MSSS)

Abbreviation for Mature Store Sales. It's the revenue from pharmacies in operation for more than three years.

CAGR

Compound Annual Growth Rate. Metric that helps to understand the development of a given subject over time. It's a notional value, which reports at what rate one grows if the growths were constant.

IRR

Internal Rate of Return. Used by companies and investors to evaluate the return of a given project.

Ibovespa

Bovespa Index. Performance indicator of shares traded on B3.

IPCA

Extended National Consumer Price Index. It measures the inflation of products and services sold in retail. (Source: IBGE)