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AstraZeneca implements new drug supply system

UK company AstraZeneca has followed Pfizer's decision to change its drug distribution system and has signed an agreement with Alliance Boots and Celesio AG to deliver its medicines directly to pharmacies and hospitals.

This new approach will replace a system of whereby AstraZeneca would use a number of wholesalers to supply drugs.

The move is similar to an agreement made by Pfizer to have UniChem as its sole drug distributor. At the time rival wholesalers and pharmacists opposed the Pfizer deal claiming it would damage the distribution system and competition between wholesalers. The complaints led to the Office of Fair Trading initiating an investigation, which will report its findings at the end of the year.

AstraZeneca said it had entered the agreement in order to simplify and update its distribution network. The switch to two wholesalers is expected to take place in the third quarter.