Pfizer UK’s new distribution arrangements to be probed by OFT

Pfizer UK’s decision to take control of the entire distribution process for its drugs – from factory to pharmacy – is set to be investigated by the Office of Fair Trading, according to recent reports.

The British arm of the world’s largest pharmaceutical company introduced the new distribution arrangement, in conjunction with UniChem, to protect its supply chain after repeated discoveries of counterfeit batches of Lipitor finding their way to consumers.

However, the decision has brought strong opposition from organisations such as the British Association of Pharmaceutical Wholesalers (BAPW), which has claimed that Pfizer’s actions are a “slur” on wholesalers who work closely with pharmaceutical companies to get drugs launched quickly.

Martin Sawyer, BAPW’s executive director, said it was “disingenuous” to suggest that the presence of counterfeit medicines had to do with anything other than “unscrupulous criminals”.

Furthermore, Pfizer’s distribution arrangements are set to be investigated by the OFT due to concerns that the deal could be anti-competitive, the Times reports.

A spokesman for the regulator told the newspaper: “We are considering whether Pfizer?s actions raise competition concerns and whether this is something that we should investigate further.”

Pfizer UK has dismissed questions over the reliability of supply under the new arrangements, claiming that its new visibility over the entire supply chain will enable it to respond more quickly to product shortages.