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AstraZeneca distribution scheme on hold

AstraZeneca is to delay the implementation of its new distribution system for its medicines in the UK until 2008.

The company had planned to have the system up and running by late summer. UniChem and AAH Pharmaceuticals were appointed as distribution partners in April.

The system replaces the traditional method of supplying drugs indirectly through wholesalers. Pfizer adopted a similar approach, but is now being investigated by the Office of Fair Trading after angering wholesalers and chemists with its exclusive Unichem deal.

Wholesalers and pharmacists argue that the new distribution deals are stifling competition in the UK. The OFT is due to report its findings in late 2007.