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Published on 1 August 2007

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Sanofi limits UK distribution system

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Sanofi-Aventis is set to become the third drug major to switch to an exclusive distribution system for its medicines in the UK, with the announcement that from 1 November its products will be distributed by AAH, Phoenix and UniChem only.

The change is being made to improve supply-chain efficiency and integrity in the delivery of medicines to patients, a statement from the French-based drugmaker said.

The statement added that the three firms that use exclusive systems will offer 100% national coverage across the UK, including Northern Ireland, there will be no change to their wholesaler status and they will continue to control both discounts and delivery frequency.

Announcement of this latest limited distribution deal was embargoed until 30 July, so representatives of the wholesaling industry have yet to comment. However, the British Association of Pharmaceutical Wholesalers (BAPW) has been fiercely critical of the first two such arrangements, announced by Pfizer last October and AstraZeneca in April this year, warning that these “new and varied distribution arrangements” could damage the robustness of the pharmaceutical supply chain and patients’ ability to receive medicines quickly and easily, with the potential for hidden costs to the UK’s National Health Service.

Pfizer announced its ground-breaking sole-supplier deal with Alliance Boots unit UniChem last September, stating that selling its prescription medicines direct to UK pharmacists and dispensing doctors would let it secure the supply chain for its medicines and reduce the risk of counterfeit medicines.

In March 2007 the deal was unsuccessfully challenged in the High Court by a group of eight wholesalers, including AAH, which in April was named by AstraZeneca as one of just two wholesalers alongside UniChem which would distribute its products in the UK from later this year.

AAH group managing director Steve Dunn commented: “Pharmacists will be relieved that this is not another single-channel scheme like that implemented by Pfizer which relies upon one agent to meet the complex demands of every pharmacy, hospital and dispensing doctor everywhere in the UK.”

However, AstraZeneca has now said implementation of the new distribution arrangements will be delayed until early next year.

Many observers are highly sceptical about the companies’ claims that they are taking these steps to minimise the risk of counterfeit medicines entering the supply chain, and believe their real motive is to destroy the parallel imports market.

Some experts believe such distribution deals will actually worsen the risk of patients receiving counterfeit medicines: an across-the-board take-up of such programmes could lead to pharmacists looking to buy their products elsewhere, including from “less reputable sources,” warned Dispensing Doctors Federation chief executive David Baker at this year’s BAPW conference.

However, Sanofi-Aventis UK supply chain director Mike Isles said the new arrangements will let the company “maintain the service levels that our customers experience today, whilst improving supply chain efficiency in the delivery of our medicines to patients”.

PharmaTimes 30/7/2007



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