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PJ Online homeThe Pharmaceutical Journal
Vol 278 No 7456 p695
16 June 2007

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Independents believe Pfizer's single wholesaler distribution model puts them at a disadvantage

David Wood

David Wood, IPF executive director

Some two thirds of independent contractors surveyed by the Independent Pharmacy Federation believe there has been deterioration in the service level received for Pfizer products following the launch of Pfizer's direct-to-pharmacy (DTP) scheme on 5 March 2007.

David Wood, IPF executive director, said at the annual conference of the British Association of Pharmaceutical Wholesalers last week that 15 per cent of the 330 respondents had replied “yes” to the question: “Has Pfizer tried to restrict the amount of any of their products that you can order?” He elaborated: “My understanding was these were everyday, regular community pharmacies which, somehow, got an abnormal ordering pattern that didn’t fit Pfizer’s view of their ordering pattern, and therefore they had product stopped.”

At the conference, Mr Wood said he knew of at least one case where patients had not received supplies of medicines because of restrictions placed by Pfizer (see Panel below).

Pfizer restrictions leave patients waiting for their supplies

Allen Tweedie, one of the directors of Healthcare Plus Pharmacies Ltd (a regional independent pharmacy group in the north of England) and Independent Pharmacy Federation board member, told The Journal that Pfizer had refused to supply Lipitor 10mg and 20mg tablets on three separate dates, and without prior warning. The invoice from UniChem read “no right to buy”, he said.

He maintained that, when contacted, Pfizer said they had calculated that the pharmacy had exceeded its quota and the manufacturer would not discuss the matter further.

Dr Tweedie said that the chief executive of Healthcare Plus Pharmacies was subsequently able to resolve the problem. However, he said that the problem was not sorted out within 24 hours, which meant that the pharmacy had broken its terms of service and five patients were involved in waiting for the Pfizer medicine.

“A letter of complaint was sent to the Secretary of State for Health, Patricia Hewitt, early in May, asking for an investigation,” he said.

Dr Tweedie insisted that the issue of pharmacists selling product to other pharmacies or overseas “does not apply to us at all”. He posed the question: “What research had Pfizer done to find out what the real demand of actual pharmacies is?”

Pfizer has been invited to respond to this case for next week’s issue.

The questionnaire, Mr Wood said, was distributed though pharmaceutical wholesalers Phoenix and Mawdsley-Brooks to independent contractors of whom 84 per cent did not have an account with UniChem (Pfizer’s chosen distributor) before 5 March.

Three quarters of respondents believed that the distribution changes had an impact on their ability to provide a service to patients, and over half believed that their ability to compete in their local area was hindered.

Last week Pfizer told The Journal that it had restricted supply in around 39 cases in the first three months (PJ, 9 June, p661) and only in instances where it deemed ordering “excessive”.

The results of the IPF questionnaire formed part of the group’s response to the Office of Fair Trading’s market study into UK medicines distribution (PJ, 2 June, p637).

In its response the IPF argues: “The imposition by Pfizer of four bands of discounts [PJ, 9 December 2006, p679] tends to approximate the variance in the NHS deduction scale. However, for smaller contractors this represents a 2 to 3 per cent drop on the various discounts that they had negotiated from wholesalers under prior arrangements, while larger contractors have not been disadvantaged.”

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