Direct-to-pharmacy push by Pfizer in Australia

21 October 2007

Global drug giant Pfizer has caused a stir in several pharmaceutical wholesale markets with the launch in September of a direct-to-pharmacy arrangement in Australia. A similar program is under consideration in the UK, where the Office of Fair Trading is considering the competition policy issues raised by the streamlining of wholesale operations.

The Pfizer Direct system bypasses drug wholesalers by arranging for a five-year partnership between the drugmaker and logistics giant DHL Exel Supply Chain. The Pfizer Direct scheme in Australia is to supplement pharmacy supplies, the firm stated. The emergence of logistics firms as competitors to dedicated pharmaceutical wholesalers is a matter of concern for the latter. According to the Expopharm newsletter, DHL signed a L22.0 billion ($44.92 billion) deal with the UK government last year to exclusively supply every one of the National Health Service hospitals.

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