UK

UK watchdog the Office of Fair Trading has launched an investigation into the distribution of medicines in the country. This decision follows recent and proposed distribution changes by leading UK medicine suppliers and comes as a result of complaints received by the OFT from pharmacists and dispensing doctor and competing drug wholesalers, who are concerned about the impact of these moves on their operations.

Until recently, all medicines were distributed through a number of competing wholesalers but, in March this year, the UK subsidiary of global drug giant Pfizer began selling prescription drugs solely through one wholesaler, Unichem (part of the Alliance Boots group, which is currently the subject of takeover offer from private equity group Kohlberg Kravis Roberts).

Pfizer announced its decision to set up a distribution deal exclusively with Alliance Boots, the UK's largest drugstore chain, last year, claiming that it was "deeply concerned with the current distribution system and increased incidence of counterfeiting in the UK supply chain (Marketletter October 9, 2006).