Sanofi-Aventis restricts supply to three wholesalers
Pascal Le Segretain/Getty Images
 Sanofi-Aventis will begin its new supply arrangement on 1 November
2007 |
Sanofi-Aventis has reduced the number of wholesalers that will supply its products “to improve supply chain efficiency and integrity”, hot on the heels of a similar
announcement by Napp Pharmaceuticals, reported last week (PJ, 28 July, p89).
Sanofi-Aventis has selected AAH Pharmaceuticals, Phoenix Healthcare and
UniChem as wholesalers for its products — both prescription and
over-the-counter — a move that the manufacturer says “will
offer 100 per cent national coverage across the UK, while still providing
pharmacists, hospitals and dispensing doctors with a choice of supply”.
Sanofi Pasteur MSD vaccines are not included in the plans.
Within the arrangement — beginning on 1 November 2007 — the
selected wholesalers will continue to control levels of discount and
delivery
frequencies. The new arrangement is not a direct-to-pharmacy model, a
spokeswoman for Sanofi-Aventis emphasised.
In a letter to contractors, Mike Isles, supply chain director, Sanofi-Aventis,
explained: “Since we are maintaining wholesaler status in this
arrangement, we do not anticipate any change whatsoever in the overall
cost to the NHS, nor any impact on clawback and related pharmacy remuneration
arrangements.” He went on: “Given other recent developments
in the supply chain, we trust that this letter will help to assure you
that this is a small change.”
Sue Sharpe, Pharmaceutical Services Negotiating Committee chief executive,
commented: “We remain concerned about the impact that changes to
manufacturers’ distribution arrangements may have on community
pharmacies and are in contact with both Napp and Sanofi-Aventis. We are
seeking to work with them to minimise the impact of this change on pharmacies
that do not currently use AAH, Phoenix or UniChem as their first-line
wholesaler.”
The National Pharmacy Association voiced its disappointment that both
manufacturers plan to implement such changes ahead of the results of
the Office of Fair Trading’s study of UK medicines distribution.
NPA chief executive Alison White said that some contractors would be
forced to change to a different wholesaler. “The wholesalers not
selected will have huge pressure on their margins — resulting in
potential changes in volume discounts for NPA members,” she added.
Martin Sawer, British Association of Pharmaceutical Wholesalers executive
director, told The Journal that, with all of the supply chain
developments over the past year, it is a good sign that manufacturers
have chosen
to do business with existing wholesalers rather than logistics service
providers.
He said that some small wholesalers are already evolving their
business models, which would only accelerate with market consolidation
to the three national wholesalers. “Regional wholesalers will look
at developing new mixes of products to keep their businesses moving forward,” he
added. |