UK investigates drugs distribution market
The UK's Office of Fair Trading (OFT) today launched an investigation into the impact on the cost of medicines to patients and the NHS after Pfizer’s controversial deal to sell drugs in the UK solely through one wholesaler.
The Government watchdog is to put the drugs distribution market under the microscope in a bid to ensure patients and the health service will continue to get a fair deal as the sector consolidates.
Pharmaceuticals giant Pfizer last month completed an exclusive distribution deal with Alliance Boots, via its UniChem wholesale arm, despite opposition from smaller wholesalers concerned over the effects on competition in the market.
Pfizer is the world’s largest drugs company and supplies about 10% of the UK’s total market to pharmacists, hospitals and dispensing doctors.
The OFT investigation could have implications for a potential private equity takeover of Alliance Boots, which is being bid for by Kohlberg Kravis Roberts.
There is already concern among doctors and health professionals over the impact on the NHS if the company fell into venture capital hands.
Ann Pope, OFT director in markets and projects, said: “This is an important market study in one of the OFT’s priority sectors. Recent changes in the distribution arrangements for some medicines have caused great concern to many in the market. It is important for us to understand the likely impact of these changes on patients and costs to the NHS.”
