PFIZER'S decision to drop its decade-old direct distribution model and return to Community Service Obligation (CSO) wholesalers (PD breaking news) has been welcomed across the industry.
Pfizer launched the partnership with DHL in late 2010 (PD 06 Dec 2010), with wholesaler peak body the National Pharmaceutical Services Association (NPSA) at the time warning it could lead to the collapse of the CSO system guaranteeing delivery of PBS medications across the country.
Ten years on "we are a different organisation," according to Pfizer Australia and NZ MD Anne Harris.
"Moving from direct to wholesale distribution will enable a greater focus on our core business as a biopharmaceutical company, and better position ourselves for growth," she said.
Harris confirmed that from the end of Q3 2021 Pfizer will supply its full portfolio of innovative and off-patent medicines to community and hospital pharmacies via the national wholesaler model.
'Pfizer's biopharma business has a diverse product portfolio and range of sales in Australia...we will continue to offer next business day delivery through wholesale distribution partners, to more than 5,600 pharmacies nationally."
Harris said "we are committed to ensuring that patients have access to our medicines and vaccines in every location in Australia, and our direct distribution model has been a key contributor to this".
She also thanked DHL for its strong support, adding that Pfizer "remains committed to working closely with them for a smooth transition from our direct distribution partnership and ensuring continued patient access to our medicines".
"We will continue to partner with DHL for our pre-wholesale activities," Harris confirmed.
The Pharmacy Guild of Australia acknowledged the change, with National President Trent Twomey saying "this is good news for community pharmacies, who will now be able to access Pfizer medicines under the CSO, which ensures equity of access to Pfizer medicines delivered across Australia under the same agreement as all other CSO distributors".
Twomey acknowledged his predecessor, George Tambassis, who he said was "instrumental in delivering this change".
Pfizer has already signed a CSO distribution agreement with API, and said it would finalise deals with other wholesalers shortly.
API CEO Richard Vincent said "we are honoured that Pfizer Australia has entrusted us with the distribution of its medicines to community pharmacists".
He said the volume provided under the Pfizer deal would deliver an estimated annual $4 million boost to the API bottom line from 01 Sep this year.
Speaking as chair of the NPSA, Vincent added that "the certainty of uninterrupted and equitable distribution of medicines and vaccines to all corners of Australia has never been more important".
"As an industry we have continued to invest in a state-of-the-art national network that is dedicated solely to protecting the health of all Australians.
"We look forward to again supporting Pfizer to ensure its portfolio of innovative and off-patent medicines are efficiently and safely delivered to hospital pharmacies and more than 5,600 community pharmacies and their patients across Australia," Vincent concluded.
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