Wednesday, October 17, 2007

OFT may twist Pfizer's arm

Pfizer, the world’s largest drug group, could be forced to drop or amend its exclusive British medicines distribution deal with UniChem, the wholesale arm of Alliance Boots, under proposals being considered by the Office of Fair Trading (OFT).

OFT officials, who have been investigating competition in the UK wholesale medicine market since April, met the Department of Health (DoH) yesterday to discuss their preliminary findings, The Times has learnt. Among proposals under discussion are measures that could force Pfizer to invite other wholesalers to act as distributors of the company’s medicines.

Pfizer’s present “direct to pharmacy” model, launched in March, has cut out traditional drug wholesalers, a move condemned by independent pharmacists, MPs and rival wholesalers. They argue that, by restricting the supply of all Pfizer products, which are 15 per cent of the UK market for prescription medicines, to just one company, the model is a threat to competition, drug pricing, patient welfare and the NHS.

More at The Times

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