Watchdog probes drug distribution

The UK’s Office of Fair Trading (OFT) has begun a probe into the UK supply of medicines, after changes at the world’s biggest pharmaceutical firm, Pfizer.

Earlier this month, Pfizer began selling its prescription drugs through just one medical wholesaler, Unichem.

This was designed to tackle the rise in fake medicines, but patient groups said it could limit access to vital drugs.

The OFT said its study would consider the impact of the move on competition, the NHS and patients.

It said that the health service spends more than £10bn per year on prescription medicines with Pfizer its single largest supplier.

UK pharmacies provide more than 800 million prescriptions per year, the OFT said.

“Recent changes in the distribution arrangements for some medicines have caused great concern to many in the market,” said Ann Pope, the OFT’s director in markets and projects.

“It is important for us to understand the likely impact of these changes on patients and costs to the NHS.”

Pfizer said it would co-operate fully with the investigation, adding that it was “pleased to note that the OFT has not launched a formal investigation into Pfizer’s medicine supply and distribution arrangement at this time”.

Earlier this month, eight rival wholesalers tried to secure a High Court injunction to stop Viagra-maker Pfizer going ahead with the exclusive distribution deal with Alliance Boots, via its UniChem wholesale arm.

At the time, Pfizer said the deal would help “secure” its drug supply chain and boost confidence among pharmacists and patients about the provenance of medicines.

This followed a series of counterfeiting incidents in the past 18 months in which rogue supplies of medicines, including blockbuster anti-cholesterol drug Lipitor, were discovered.

Pfizer said it was “deeply concerned” about the increased incidences of counterfeit medicines and that its new commercial arrangements would reduce this risk.

The company has called on regulators to investigate the drug supply chain which it says is “vulnerable” to cross border trade in illegal drugs.

The Patients Association said it was not aware of widespread counterfeiting of drugs.

“As patients we are clearly concerned about it, but if you get a good system of distribution and there is careful checking by pharmacies there should not be a problem,” said its spokesman Roger Odd.

The OFT said it would report back at the end of the year when it would have “a better understanding of the impact of the changes that are taking place and whether further action is required”.

“The decision to undertake a market study reflects the importance of ensuring that the distribution of medicines involving pharmacists, hospitals and dispensing doctors, is timely, efficiently delivered and cost effective for patients,” the watchdog added.

Alliance Boots said that its Unichem business would continue to operate as usual while the OFT inquiry was carried out.

“The announcement of this study does not affect the operation of the group’s direct-to-pharmacy distribution arrangements with Pfizer,” the company said.