Friday, October 20, 2006

Pfizer Unichem - OFT take a sniff at the deal

Plans by Pfizer to distribute its medicines in Britain exclusively through one supplier are being looked into by the consumer affairs watchdog to see if they raise competition concerns.

The Office of Fair Trading (OFT) said on Friday it was taking the step following complaints from independent pharmacies and wholesalers over an exclusive deal between Pfizer, the world’s top drugmaker, and Britain’s Alliance Boots Plc (through their UniChem wholesale arm).

"The OFT has a number of complaints expressing concern about Pfizer’s decision to distribute its products directly to customers using Alliance Boots from March next year," an OFT spokesman said.

"We are considering whether Pfizer’s action raises competition concerns and if this is something which the OFT should investigate further."

Critics believe Pfizer’s real aim for this move is to fight parallel trade, the legal practice in Europe whereby medicines are imported for resale into places like Britain from countries in southern Europe, where prices are lower.

Source: Reuters

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