PGMN3

Pague Menos, traded on B3 under the ticker PGMN3, is a pharmaceutical retail chain founded in 1981 by Francisco Deusmar de Queirós in Fortaleza, Ceará. Over more than four decades, the company evolved from a neighborhood pharmacy into one of the largest chains in the country, consolidating itself as the largest drugstore chain in the North and Northeast and the second-largest in Brazil by number of stores. Since 2009, it has been the only pharmaceutical retail chain with a presence in all Brazilian states and in the Federal District, continuously expanding its network of points of sale and its logistics infrastructure. In 2020, with the completion of its initial public offering on B3, it raised funds for a new cycle of organic and inorganic expansion, later reinforced by the acquisition and integration of Extrafarma.

Pague Menos’ business model is centered on specialty retail operations focused on health and well-being. The company operates under a drugstore concept, combining the sale of branded reference drugs, generics, over-the-counter (OTC) medicines and a broad range of hygiene, nutrition, and beauty products, complemented by health services. As of December 31, 2025, the chain had generated gross revenue of more than R$ 16 billion and operated 1,689 stores in over 400 Brazilian cities, serving a diversified customer base across different income brackets. The company also offers relationship, loyalty, and convenience services, such as prescription drug benefit programs, corporate partnerships, and financial solutions tied to purchases made at its stores.

Pague Menos’ operations are organized under a single retail operating segment, but with a product and service portfolio segmented by category. Among prescription drugs, it highlights branded medicines, including reference and similar drugs, and generic medicines, all regulated by ANVISA and specific pharmaceutical legislation. Among non-prescription products, the company sells OTC drugs aimed at acute and self-diagnosable conditions, as well as herbal medicines, vitamins, vision products, health equipment, and nutrition and convenience items. The company also works with a robust hygiene, nutrition, and beauty line, including shampoos, cosmetics, sunscreens, baby products, and oral hygiene items. In addition, it offers pharmaceutical care services such as blood pressure and blood glucose measurements, rapid tests, injectable administration, vaccination, mobile phone top-ups, and home delivery, as well as specialized initiatives such as the Special Medicines Service (AME).

Within its assortment, Pague Menos has developed a significant portfolio of exclusive and private-label products, fully outsourcing manufacturing to selected partners. As of December 31, 2025, the company had approximately 1,500 active private-label items, distributed across categories such as multivitamins, personal hygiene, fragrances, first aid, and health accessories. These items accounted for around 6.2% of sales in fiscal year 2025, reinforcing its strategy of differentiating and monetizing its product mix. The company also operates AME, a unit focused on high-complexity, high value-added specialty drugs, such as oncology and fertility products, with a portfolio of more than 600 items, in addition to a multidisciplinary service platform covering the entire country.

The company has adopted an omnichannel strategy to integrate physical and digital channels, which has become a key pillar of its competitive positioning. Digital sales, made through its website, app, telesales, and other channels, already accounted for 19.4% of gross revenue in 2025, underscoring the growing importance of e-commerce and remote channels. Online orders are fulfilled exclusively from physical stores via last-mile partners, with delivery times often under two hours across a large portion of the chain. Pague Menos offers features such as “Click & Collect,” available in 100% of stores, an “endless aisle” solution that enables delivery from other units of products unavailable at the originating store, smart lockers for order pick-up, integration with proximity-delivery super apps, and a sales and relationship solution via WhatsApp with intensive use of automation and artificial intelligence.

In the healthcare services arena, Pague Menos has been consolidating the concept of an “integrated health hub.” Since 2016, the company has offered clinical services in its stores under the Clinic Farma brand, which as of December 31, 2025, was present in 1,181 locations. These services include basic care, rapid tests, injectable administration, and other pharmaceutical care initiatives, more recently expanded to include telemedicine, digital prescriptions, and a health services hub in its e-commerce via partner platforms. The company also offers Prescription Drug Benefit Programs (PBM) in partnership with the pharmaceutical industry and maintains agreements with more than a thousand companies and health plans, enabling discounts and payment modalities such as payroll deduction, which helps foster loyalty among a broad base of recurring customers.

Network expansion and operations are supported by a highly centralized logistics and inventory management infrastructure. In 2025, Pague Menos had ten distribution centers located in different states, with approximately 131 thousand m² of built area, responsible for supplying all stores in the chain, except for certain specific items such as soft drinks, ice cream, and vaccines, which are delivered directly by suppliers. Inventory management is automated, based on systems that consolidate daily sales information, calculate replenishment by store and by product, seek to reduce stockouts, and balance working capital with product availability. The company uses telemetry and data intelligence tools to monitor operating indicators in real time, support purchasing, logistics, and assortment decisions, and design action plans through multidisciplinary squads integrating data and operations teams.

Pague Menos’ activities operate within a strict regulatory environment, typical of the Brazilian pharmaceutical sector. The company is subject to the regulations of the National Health Surveillance System, structured by Law 9,782/1999, and to oversight by the National Health Surveillance Agency (ANVISA) and by state and municipal health authorities. The operation of pharmacies and drugstores requires compliance with specific federal laws and regulations, such as Laws 5,991/1973, 6,360/1976, 9,787/1999, 10,742/2003, and 13,021/2014, as well as ANVISA decrees and resolutions, especially RDC No. 44/2009. The company is also subject to municipal regulations regarding the sale of convenience products in drugstores, with some locations imposing restrictions that require legal action to maintain such operations.

From a corporate governance and ESG standpoint, Pague Menos has undergone an institutional strengthening process, particularly after General Atlantic became a minority shareholder in 2015 and following its IPO in 2020. The company enhanced its governance structures through the creation of committees, adoption of internal policies, and the addition of independent members to its board of directors. On the social and environmental front, initiatives include participation in social programs since the 1990s, such as the federal Alfabetização Solidária literacy program, and recent actions focused on assessing private-label suppliers under compliance and environmental, social, and governance criteria, with annual audits and action plans aimed at the continuous improvement of its value chain.

Pague Menos’ common shares, traded under ticker PGMN3, reflect a business concentrated on operating a nationwide drugstore chain with a strong presence in the North and Northeast regions and increasing integration between brick-and-mortar retail, digital channels, and healthcare services. With a base of more than 22 million active customers and a loyalty program with tens of millions of registered users, the company operates a model characterized by high transaction volumes, relatively low average ticket, and extensive capillarity, all typical features of large-scale Brazilian pharmaceutical retail listed on B3.