Pfizer to bypass wholesalers
December 6, 2010
PFIZER has announced a major
change in its distribution strategy in
Australia, with prescription
medications to be sold directly to
pharmacies from 31 Jan 2011.
The change, according to Pfizer,
is designed to “meet the needs of
the evolving healthcare environment
within Australia including current
and future Pharmaceutical Benefits
Scheme reforms, as well as the
upcoming patent expiry of a
number of Pfizer medicines. “
Pfizer also stressed that the move
would enable it to build stronger
relationships with community
pharmacy, which will be supported
by the expansion of its customer
service team to include a dedicated
pharmacy field force.
“In order to develop stronger
partnerships with pharmacists and
better adapt to the changing
environment, we have decided that
a dedicated field force with specific
pharmacy experience and a direct
distribution model for all our
prescription medicines sold into
community pharmacy are critical,”
explained Pfizer Australia Managing
Director, John Latham.
The pharmacy field team
commenced operations this month,
and throughout Dec will be calling
into pharmacies to explain the
changes (and walk them through
the account sign-up process) before
the system goes live on 31 Jan.
To handle its community
pharmacy distribution, Pfizer has
appointed its Pfizer Direct
distributor, DHL - but both Pfizer
and have stressed that they will not
be pursuing a share of the
Community Service Obligation
funding pool for Pfizer products.
Pfizer has also said that its new
business model will only impact the
ordering of prescription medicines
into community pharmacies, and
that Pfizer medicines sold into
hospitals as well as consumer
healthcare and nutritional products
will continue to be distributed as
per usual.
MEANWHILE the move looks to
be set to significantly impact
wholesalers, with Sigma
Pharmaceuticals this morning
warning that the “Pfizer Direct”
model would see its annual
wholesaling revenues decrease by
10-15% from February next year.
“The full impact on future
earnings is being assessed,” the
company said, but warned that the
move, combined with the recent
PBS Reform legislation, “will
accelerat e the need for Sigma to
further reduce its customer trading
terms”.
Australian Pharmaceutical
Industries also issued an ASX
statement, saying it was “is in the
process of analysing the
implications of this decision”.
And Symbion Pharamacy
Services says it’s “extremely
disappointed” at the Pfizer move,
with ceo Patrick Davies saying it
would force the firm to “immediately review
its pricing structure”.
He warned that Symbion would
also now review the “ranging and
support for the remaining Pfizer
and Wyeth products in its business.”
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