We were founded in December 2009. In May 2010, we acquired Rede Nordeste de Farmácias (RNF), which owned drugstores in the state of Pernambuco. We also acquired other drugstores from the brand Farmácia dos Pobres, consolidating our presence in the northeast region.

In July 2010, we acquired Rosário Distrital, a drugstore chain founded in Brasilia, with more than 37 years of operations in the pharmaceutical market, with leadership in Brasilia and the midwestern region. In October 2010, we acquired Centro Oeste Farma, a company responsible for the administration of the distribution center of the chain.

Also in October 2010, we acquired Guararapes Brasil, the leading retail drugstore in the State of Pernambuco, with over 47 years of experience in that market. After the acquisition, both Rede Nordeste de Farmácias and Guararapes Brasil began operating under the brand Farmácias Guararapes, strengthening our business in the northeastern region.

In December 2010, we acquired Farmais, the largest retail drugstore franchise chain in Brazil, concentrated mainly in the State of São Paulo.

Taking a big step in our company’s growth, in June 2011 we completed our initial public offering (IPO) wich raised R$396.6 million, net of fees. The shares were listed under the ticker “BPHA3” on the Novo Mercado, a segment of the BM&FBOVESPA with the highest standards of corporate governance.

In February 2012, we acquired Sant’Ana, a leading drugstore chain, in terms of revenue, in the State of Bahia. With this acquisition, we expanded our operations in the northeastern region of Brazil.

In March 2012, we inaugurated our Shared Services Center, a central management unit created to unify the platforms’ back office activities, seeking to standardize processes, enhance the efficiency of operations, and, consequently, contribute to increasing the company’s competitiveness. Unification of support activities, such as accounting, human resources, supply, and IT, enables the operations team to focus exclusively on strategic selling activities.

Also in March 2012, we acquired Big Ben. This drugstore chain is the largest, in terms of revenue, in the State of Pará, accounting for approximately 50% of total sales in the retail drugstore market in the northern region, according to IMS Health. With this acquisition, we began operating in the northern region and expanded our operations in the northeastern region.

In April 2012, we established a partnership with the company Beauty’in and its founder Christiana Arcangeli, with the goal of developing products related to health, personal hygiene, and wellbeing. We believe that our capabilities, provided by our chain of owned stores and franchises, together with this partnership, will allow us to enlarge our private label product line.

In June 2012, we concluded our second public (follow-on) offering of common shares, for a total issuance of 59.8 million common shares, priced at R$9.25 each (52.8 million shares in the primary offering, considering 7.8 million related to the Green Shoe issuance, and 7.0 million shares in the secondary offering). Together with the Green Shoe issuance, proceeds totaled R$476.2 million, net of fees, which will be invested in the company so that we can achieve the strength needed to sustain our growth in coming years.

Also in June 2012, we completed the integration of the Guararapes and Big Ben chains; the two platforms now operate as a single unit.

Challenges ahead

Since our incorporation, we have combined leading regional companies and have assumed the role of pioneers in the movement towards consolidation in the Brazilian retail drug sector. Our combined platforms give us 186 years of experience in drug retailing and we are strongly positioned in the fastest-growing regions of the country.

Having taken the initial steps towards consolidation in the sector, we entered a new phase, which has focused primarily on structuring the company and gaining the solidity required to sustain our growth over the next several years. For this, we have assembled a team of the highest caliber, with the appropriate experience in integration and pharmaceutical marketing, and with useful regional knowledge.

Our Shared Services Center (SSC), inaugurated in March 2012, continues its work of centralizing the back-office operations of the platforms. By the end of 2013, all platforms should be plugged in to the SSC.

In 2012, we also initiated the process of integrating the commercial area, in our quest not only for better purchasing conditions but also to establish closer relationships with our suppliers as we develop long-term partnerships.

Armed with the necessary human and financial capital, our main mission for this year, and the next few years, is to transform these excellent regional companies into one excellent national company, thus realizing our dream of becoming everyone’s first choice, contributing to the health and wellbeing of the communities in which we operate.

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