Pfizer’s controversial new UK supply chain goes live

pharmafile | March 5, 2007 | News story | Manufacturing and Production  

Pfizer has launched its new single wholesaler supply chain in the UK, after a last-minute legal challenge was defeated.

The pharmaceutical company's new arrangements mean that its medicines can only be supplied through one wholesaler, UniChem, an unprecedented arrangement which pharmacists and the wholesaler industry has fought hard against.

Pfizer's opponents say the move is anti-competitive, creating an unfair monopoly in supplies of its medicines, and have asked the competition watchdog, the Office of Fair Trading, to investigate.

The OFT has launched its probe, but does not have powers to block the introduction of the new system.

Wholesaler industry organisation the BAPW made a final bid to block the scheme with a court injunction, but a judge ruled that it should be allowed to go ahead.

Commenting on its court victory, UniChem said the pharmaceutical marketplace was changing faster than ever, and indicated that if it had not taken up Pfizer's offer, a logistics provider from outside the sector would have stepped in instead.

David Coles, managing director of UniChem, commented: "We understand the needs of the pharmaceutical market and are committed to offering pharmacists the best possible level of service under these new arrangements, which will ensure the continuous supply of legitimate Pfizer prescription medicines to patients in the UK."

The BAPW says it is concerned about the impact the new rules may have on patients, but the move is also a threat to some of its members, who could go to the wall if other pharma companies follow suit and use just one wholesaler.

Martin Sawyer, executive director of the BAPW, has called for a government review of the whole system.

"The supply chain is the invisible backbone of the NHS. The rules that the UK have come to rely on for its supply of pharmaceuticals are quietly being eroded."

Sawyer said all parties should discuss what the best possible model is for the service.

"If this means more regulation, then so be it. Certainty in business is better than the uncertainty which is apparent in the supply chain today. This is a call for a review of the UK model of the supply of pharmaceutical products to patients in the NHS."

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