Novartis ‘to follow Pfizer’ in supply chain changes

Following moves by Pfizer to make UniChem the company’s only drug distributor, Novartis has written to a number of wholesalers outlining potential plans to transform its own supply chain.

The company is considering a “direct to pharmacy” arrangement, where its wholesalers would be used only for logistics services and paid a set fee accordingly, the Guardian reports.

An arrangement of this sort would replace the existing system, where the company currently supplies its pharmaceuticals to wholesalers who then distribute products to hospitals and pharmacies.

The newspaper reports that the company is planning dialogue with a number of community pharmacists and other potential candidates.

“We will be engaging with a number of distribution business and at this point, no decisions have been taken and we are at a very early stage in this process,” a spokesperson said.

In October 2006, Dave Watson, head of trade at Pfizer, outlined the company’s reasons for announcing modifications to its supply chain structure in September, changes which have taken effect from March this year.

Mr Watson cited three incidents of counterfeit Lipitor and the consequent batch recalls and shortages of Cardura XLr as key contributing factors for the change, with UniChem chosen due to their operation capabilities, full UK coverage and “shared concerns” regarding patient safety.