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news.The Office of Fair Trading has begun a study into the distribution of medicines in the UK after recent changes to the supply of drugs were undertaken by Pfizer and Alliance Boots.
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Until recently all medicines were distributed through a number of competing wholesalers. However, in March 2007 Pfizer began selling prescription drugs solely through one wholesaler, Unichem, a division of Alliance Boots. Other suppliers, such as AstraZeneca, are also considering introducing significant changes to their own distribution arrangements.
The decision to undertake the study follows complaints filed about the deal between Pfizer and Unichem, which allows Pfizer to sell directly to pharmacists. Previously, eight UK wholesalers tried to prevent the distribution deal involving Pfizer by requesting a High Court injunction.
“Recent changes in the distribution arrangements for some medicines have caused great concern to many in the market,” said Ann Pope, OFT Director in Markets and Projects.
The study will consider the likely impact of such changes on competition, the NHS and patients and will report back by the end of the year, the OFT said. The NHS spends more than GBP10 billion per year on the purchase of prescription medicines.