Pharmaceutical Distribution in Europe: Pfizer Breaks the Mold

Decision Resources
August 9, 2007
22 Pages - SKU: DECR1539977
License type:
Table of Contents Related Reports
Countries covered: Europe

Beginning March 2007, Pfi zer introduced a direct distribution system for its products in the United Kingdom, making them available only from the company's sole appointed distributor rather than from a choice of wholesalers. This approach, should it prove successful, threatens to overturn the established model of pharmaceutical distribution, imposing enormous changes upon key stakeholder groups-wholesalers, pharmacists, hospitals, dispensing doctors, and government.

Get the Answers You Need to Shape Your Strategy
  • Like Pfi zer, two-thirds of pharmaceutical companies have considered changes to their European distribution systems, threatening what was in 2004 a $130 billion pharmaceutical wholesale market for the region. What other pharma companies are considering a switch to direct distribution, and why? How are wholesalers adjusting their practices in anticipation of such a change in the business environment?
  • Pfi zer has reduced the discounts it provides to purchasers, changing from a percentage of the purchase value to a fl at fee per pack; other companies considering direct-to-pharmacy (DTP) distribution may follow suit. What recourse do pharmacists and prescribers have in the face of this revenue loss? What government involvement, if any, might help offset this loss? What impact could this have on services provided?
  • In 1991, GlaxoSmithKline (then-Glaxo) introduced a direct distribution program in the United Kingdom, an excursion that may provide some insight into potential outcomes of Pfi zer's current venture. What changes has the company made to this system in the intervening 16 years? How have wholesalers and pharmacists responded to this program?
Scope
  • The distribution market in fl ux: the changing patterns of pharmaceutical distribution and companies' motives for adopting direct distribution.
  • Pfi zer's pursuit of DTP: the company's attempts at direct distribution in Germany, Spain, and the United Kingdom.
  • Market impact: other multinational manufacturers interested in direct distribution.
  • Key stakeholders' response: reactions of wholesalers, pharmacists, and dispensing doctors, as well as the government view of the program and the ensuing investigation of U.K. pharma distribution.
  • Outlook and implications: our forecast for the impact of DTP on future drug distribution trends.
Please note, the PDF e-mail from publisher version of this report is for a global site license.



Additional Information

Companies and Organizations Mentioned in This Spectrum Report:
  • Companies
    • AAH Pharmaceuticals (part of Celesio)
    • Alliance Boots
    • Anzag
    • AstraZeneca
    • Avicenna
    • Beta
    • Cambrian Alliance
    • CamRx
    • Celesio
    • Cofares
    • Gehe
    • GlaxoSmithKline
    • Ivax
    • Lilly
    • Napp
    • Novartis
    • Noweda
    • Nucare
    • Numark
    • Pfi zer
    • Pharmaco 2000
    • Pharma Plus
    • Phoenix Group
    • Phoenix Healthcare Distribution (part of the
    • Phoenix Group)
    • Roche
    • Sanacorp
    • Sangers (affi liate of United Drug)
    • Sanofi -Aventis
    • UniChem (part of Alliance Boots)
    • United Drug
    Organizations
    • Association of the British Pharmaceutical Industry
    • British Association of Pharmaceutical Wholesalers
    • Dispensing Doctors’ Association
    • Groupement International de la Répartition
    • Pharmaceutique (European Association of
    • Pharmaceutical Full-Line Wholesalers)
    • International Federation of Pharmaceutical
    • Wholesalers
    • National Health Service
    • Offi ce of Fair Trading
    • Pharmaceutical Services Negotiating Committee
    • Royal Pharmaceutical Society of Great Britain
    • U.K. Department of Health

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