Pfizer wins "monopoly" UK distribution case

Global drug behemoth Pfizer has won a court battle over its decision to concentrate its UK distribution operations to 15,000 pharmacies, hospitals and dispensing physicians, via a single wholesaler, Alliance Boots' Unichem. An attempt by eight drug wholesalers to block the deal, which came into effect on March 5, failed in the High Court in London.

Pfizer argues that the move will strengthen the firm's control of the supply chain of such blockbuster drugs as Lipitor (atorvastatin), which are among the most heavily targeted by counterfeiters (Marketletters passim). A spokesman for the US-based drug giant said: "the company is confident that its new distribution arrangement is in full compliance with all applicable European Union and UK laws, and that it will secure the supply chain."

However, Reuters reported that critics of the deal believe that Pfizer is trying to make it harder for parallel trade in its products from other parts of the EU. Other drugmakers are also reportedly following developments in this case with interest.