Direct distribution no immediate threat to quality
UniChem is the only wholesaler to reach an exclusive direct-to-pharmacy
deal with a manufacturer |
Service quality for patients has not been affected by the decision of
some pharmaceutical manufacturers to bypass the conventional wholesale
system and supply medicines direct to pharmacies, the Government has
decided.
Ministers are confident that service quality will remain undamaged
in the foreseeable future and have no plans to introduce legislation
to protect standards, it says.
The decision comes in the Department for Business Enterprise and Regulatory
Reform’s response (PDF 60K), published earlier this month,
to last December’s
Office of Fair Trading’s market
study into the distribution of medicines (PJ, 15 December
2007, p667).
The response says: “The Government is unconvinced of the need to
bring forward legislation to clarify service standards at this stage,
but will keep this matter under review and may consider taking action
at a later date in the event that this becomes necessary.”
It says the decision by some manufacturers to side-step wholesalers and
deliver direct to pharmacies is a commercial matter for the businesses
concerned.
However, the Government agrees with the OFT’s warning that the
new system could increase the price of NHS medicines, since it removes
competition from the wholesale level of the supply chain. It also agrees
that the possible impact on NHS costs should be addressed as part of
the current renegotiation of the Pharmaceutical Price Regulation Scheme
(PPRS).
The response to the OFT report has been examined by the British Association
of Pharmaceutical Wholesalers whose members include UniChem, AAH Pharmaceuticals
and Phoenix Healthcare Distribution, all of which have taken on direct-to-pharmacy
distribution on behalf of manufacturers.
In a statement, the BAPW said: “The announcement by Govern-ment
recognises the role of full-line wholesalers and the critical role played
by the UK’s medicines supply chain in guaranteeing that the NHS
delivers on its promise to patients, both at a service level and in value-for-money
for the taxpayer.”
It added that competition needs to be maintained
but that it hopes that a formal distribution margin will be established
in the PPRS.
Mark James, group managing director of AAH Pharmaceuticals, said: “Distribution
change has now been extensively reviewed and accepted by the relevant
competition
authority — the OFT — and the UK Government.”
He welcomed
the decision to involve wholesalers in the PPRS negotiations but added: “It
is important that the Government understands and assesses fully the potential
impact on wholesalers of any proposed changes to the PPRS.”
Mark Stephenson, commercial and supplier relations director at UniChem,
said of the Government’s response: “UniChem is particularly
pleased to note the Government’s conclusion that, following the
introduction of the direct-to-pharmacy model, there has been no real
change in the standard of service offered to patients and no evidence
to suggest that this will be the case in the foreseeable future.”
On behalf of Pfizer Ltd, which began its exclusive distribution deal
with UniChem over a year ago, managing director John Young said: “The
introduction of our direct-to-pharmacy distribution model has allowed
us to take full responsibility for our medicines from the point at which
they leave our manufacturing centres right until they reach pharmacies.
This security in supply ensures the availability of genuine Pfizer medicines
for patients.” |
The
Pharmaceutical Journal
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