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PJ Online homeThe Pharmaceutical Journal
Vol 279 No 7463 p117
4 August 2007

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Sanofi-Aventis restricts supply to three wholesalers

Pascal Le Segretain/Getty Images

Sanofi-Aventis

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.

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