Pfizer UK/UniChem deal - Lloydspharmacy's "bitter pill"

As predicted by Insider........... Incoming!

Responding to press reports that Pfizer UK will sell its products through one distributor, UniChem, in the UK to beat counterfeiters, Justin Ash, Lloydspharmacy Managing Director said:

"We believe this deal is not driven primarily by the need for action against counterfeits or concern for patients. It is a bitter pill that the world's largest drug manufacturer could be able to dictate the distribution economics and supply of medicines in the UK. This should be a matter of industry discussion and debate with Government. "

"We support the Medicines and Healthcare Products Regulatory Agency (MHRA) in their assessment that this is a commercial decision by Pfizer and we are outraged by the claim that this decision is driven by the need to combat counterfeiting.

For example, Lloydspharmacy already has stringent processes against counterfeiting in order to protect consumers. We believe this move, imposed on pharmacies, GPs and some hospitals may increase the risk of counterfeits by removing legitimate wholesalers from the system.

These wholesalers and Lloydspharmacy have always been profoundly committed to stamp out counterfeits.

Under the terms of this new arrangement, Unichem will be required to increase its twice daily distribution from 4,000 to around 15,000 pharmacies.

Pfizer and Unichem will not know whether this works until it is too late and people are unable to access the medicines they need if the system cannot cope. We can see significant risks for shortages in this single point of failure system. There is also considerable risk that this new distribution deal will increase administrative duties and significantly reduce the time that a pharmacist will be able to spend with customers advising on prescriptions and providing guidance on healthcare.

We fully support the Government's new pharmacy contract and this deal threatens the quality of the community healthcare that pharmacies can provide. We propose an open door dialogue with all concerned parties, including drugs manufacturers, to discuss best practice for the wholesale supply of medicines".

Source

Meanwhile, it looks like Pfizer might be considering spreading the idea across the EU:

US-based Pfizer has said it is considering its product distribution options in a number of European Union countries, following its decision to sell its prescription drugs directly to pharmacists and dispensing doctors in the UK.

The world's largest drug-maker said yesterday it would distribute its own products in the UK with the aid of a single delivery company, UniChem, which is part of Alliance Boots, in a bid to front the increasing number of fake medicines in the supply chain.

"Since no two countries have identical distribution infrastructures, the precise arrangements that Pfizer is making in the UK may not be directly applicable elsewhere," a Pfizer spokesman said. "Should we decide to change our distribution system in a given country, we will appropriately inform and consult with those directly concerned".

Source

Insider's view: this has little to do with product safety/integrity but lots to do with gaining control of parallel trade.

If Insider was a comptetitor wholesaler he would be rushing to sign up another exclusive deal with another of the Big Pharmas. At least that way he would have a ticket to the "Big New Game"!