Pelion Healthcare Group companies are active in the area of wholesale and retail trade in medicinal products, medical devices, foodstuffs for particular nutritional uses, dietary supplements, cosmetics, hygiene products, sick and baby care products, foodstuffs containing natural ingredients of plant origin listed in pharmacopoeias, and medical disinfectants admitted for marketing by pharmaceutical wholesales, as specified in Art. 72.5 of the Pharmaceutical Law.
*Product is understood as the pharmaceuticals distribution service provided by Pelion Healthcare Group companies.

Wholesale and retail trade is carried out by the Group through four business lines, represented by separate companies:

• Wholesale (PGF S.A.);
• Hospital supplies (PGF Urtica Sp. z o.o.);
• Retail (CEPD N.V.);
• Services for manufacturers (Pharmalink Sp. z o.o.).

Wholesale and retail trade concerns the following product groups:

• medicinal products,
• medical devices,
• foodstuffs for particular nutritional uses,
• dietary supplements,
• cosmetics,
• hygiene products, sick and baby care products,
• foodstuffs containing natural ingredients of plant origin listed in pharmacopoeias,
• medical disinfectants

In the case of each product group, Pelion Healthcare Group companies are involved in the product life cycle at the receipt, storage, distribution and supply to recipients stages.

Chart 1 presents key distribution processes.

Distribution processes are governed by the procedures set forth in the Pelion Healthcare Group’s Quality System, which is based on the Good Distribution Practice.

At each stage of the distribution process, products of each product group are handled in accordance with the following primary regulations:

• Pharmaceutical Law of September 6th 2001 (Dz.U. of 2008, No. 45, item 271),
• Act on Food and Nutrition Safety of August 25th 2006 (Dz.U of 2010, No. 136, item 914),
• Medical Devices Act of May 20th 2010 (Dz.U. of 2010, No. 107, item 679),
• Cosmetics Act of March 30th 2001 (Dz.U. of 2001, No. 42, item 473; Dz.U. of 2013, item 475),
• Drug Addiction Prevention Act of July 29th 2005 (Dz.U. of 2012, item 124),
• Act on Reimbursement of Drugs, Foodstuffs Intended for Particular Nutritional Purposes and Medical Devices of May 12th 2011 (Dz.U. of 2011, No. 122, item 696),
• Biocidal Products Act of September 13th 2002 (Dz.U. of 2007, No. 39, item 252).

With a view to ensuring that products are delivered to customers in a safe manner and that the quality required for their designated use is maintained, Pelion Healthcare Group companies:

• purchase products only after the required licences and authorisations have been verified and confirmed, and after the products have been entered in the Central Catalogue of Products,
• qualify suppliers and customers upon confirmation of the required licences and authorisations based on the Central Catalogue of Suppliers,
• thoroughly check compliance of the delivered products with the purchase documentation (the scope of information checked depends on the type of products, i.e. for medicinal products it includes details of the supplier, name and country of the manufacturer, product name, batch number and expiry date, and, where an official fixed price or wholesale margin apply to the product, the price), and the transport conditions,
• monitor storage conditions,
• monitor transport conditions.

Transport services (including transport of medicinal products) are provided in compliance with the following primary regulations:

• Road Transport Act of September 6th 2001 (Dz.U. of 2007, No. 125, item 874, as amended),
• Driver's Work Time Act of April 16th 2004 (Dz.U. No. 92, item 879, as amended),
• Road Traffic Law of June 20th 1997 (Dz.U. of 2005, No. 108, item 908, as amended),
• Public Roads Act of March 21st 1985 (Dz.U. of 2007, No. 19, item 115, as amended),
• Transport Law of November 15th 1984 (Dz.U. of 2000, No. 50, item 601, as amended).

Road transport safety is ensured by the following stages:

• using only qualified means of transport,
• inspecting means of transport according to established procedure,
• product loading in accordance with the applicable procedure of issuing and transportation to customers,
• transit along a controlled route, monitoring of transport conditions,
• safety of the unloading location (only approved locations),
• product unloading in accordance with the applicable procedure,
• certain action taken in the case of failures or irregularities
• taking corrective and preventive actions.