Healthy Skepticism Library item: 9135

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Publication type: news

Goldstein S.
Pfizer's British distribution pact to be probed
Market Watch 2007 Apr 4
http://www.marketwatch.com/news/story/pfizers-uk-distribution-pact-probed/story.aspx?guid=%7B40865B2F%2D68EC%2D4C1B%2D8CB4%2DB1128F645482%7D&siteid=yhoo&dist=yhoo

Full text:

LONDON (MarketWatch) — Pfizer Inc.‘s one-month-old distribution pact in Britain is being probed by the U.K. Office of Fair Trade on worries about the impact to the government’s health service and to the market.

Pfizer, the world’s largest drugmaker, inked a pact in March to have its drugs distributed exclusively by Alliance Boots, the pharmacy chain and pharmaceutical wholesaler.

The OFT said other drugmakers also are considering “significant” changes to distribution arrangements.

A spokeswoman for the regulator said over 500 complaints have come in from pharmacists, rival wholesalers and doctors in smaller communities who dispense prescriptions. In addition to price, they are concerned about drug availability and additional administrative burdens, she said.

The regulator said, in a study due to conclude at the end of the year, it will examine the impact of changes on competition, the National Health Service and patients.

The NHS spends more than 10 billion pounds ($19.7 billion) a year on the purchase of prescription drugs, and U.K. pharmacies, including Boots and the Lloyd’s chain of Celesio, provide more than 800 million prescriptions a year.

U.K. consumers are charged a set price by the government for the prescriptions, except in Wales, where prescriptions are free. See more global markets coverage.

“Recent changes in the distribution arrangements for some medicines have caused great concern to many in the market. It is important for us to understand the likely impact of these changes on patients and costs to the NHS,” the OFT said.

Alliance Boots said it noted the study and pointed out that its Pfizer distribution pact won’t be affected by it.

Alliance Boots is separately the target of a takeover bid worth around $20 billion from its deputy chairman, Stefano Pessina, and Kohlberg Kravis Roberts.