German Drug Wholesalers Oppose System Changes

Phagro, the German drug wholesalers' federation, is opposing efforts to change the national drug distribution system. Some German health funds have argued recently that further health care savings can be made by revamping the manufacturer-wholesaler- pharmacist system.

Phagro director Herman Ringenaldus says the present system offers an "optimal" form of drug supply. He claims that direct distribution would bring more disadvantages than advantages. Meanwhile, Phagro is forecasting average drug sales growth of 5% in 1994. Sales last year fell from 27.3 billion Deutschemarks to 24.7 billion marks ($16.28 billion).