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Watchdog inquiry over Viagra firm Watchdog probes drug distribution
(about 1 hour later)
The Office of Fair Trading (OFT) has begun a probe into the UK supply of medicines, after changes at the world's biggest pharmaceutical firm, Pfizer.The Office of Fair Trading (OFT) has begun a probe into the UK supply of medicines, after changes at the world's biggest pharmaceutical firm, Pfizer.
Earlier this month, Viagra-maker Pfizer began selling prescription drugs via just one medical wholesaler, Unichem. Earlier this month, Pfizer began selling its prescription drugs through just one medical wholesaler, Unichem.
The move was designed to tackle the increased cases of counterfeit drugs being found in the system.
The OFT said its study would consider the impact of the move on competition, the NHS and patients.The OFT said its study would consider the impact of the move on competition, the NHS and patients.
It said that the health service spends more than £10bn per year on prescription medicines. Recent changes in the distribution arrangements for some medicines have caused great concern to many in the market Ann Pope, Office of Fair Trading
UK pharmacies provided more than 800 million prescriptions per year, it added. It said that the health service spends more than £10bn per year on prescription medicines with Pfizer its single largest supplier.
'Better understanding' Patient impact
UK pharmacies provide more than 800 million prescriptions per year, the OFT said.
"Recent changes in the distribution arrangements for some medicines have caused great concern to many in the market," said Ann Pope, the OFT's director in markets and projects."Recent changes in the distribution arrangements for some medicines have caused great concern to many in the market," said Ann Pope, the OFT's director in markets and projects.
"It is important for us to understand the likely impact of these changes on patients and costs to the NHS.""It is important for us to understand the likely impact of these changes on patients and costs to the NHS."
Earlier this month, eight rival wholesalers tried to secure a High Court injunction to stop Pfizer going ahead with the exclusive distribution deal with Alliance Boots, via its UniChem wholesale arm. Earlier this month, eight rival wholesalers tried to secure a High Court injunction to stop Viagra-maker Pfizer going ahead with the exclusive distribution deal with Alliance Boots, via its UniChem wholesale arm.
At the time, Pfizer said the deal would help "secure" its drug supply chain and boost confidence among pharmacists and patients about the provenance of medicines.
This followed a series of counterfeiting incidents in the past 18 months in which rogue supplies of medicines, including blockbuster anti-cholesterol drug Lipitor, were discovered.
Counterfeit concern
Pfizer said it was "deeply concerned" about the increased incidences of counterfeit medicines and that its new commercial arrangements would reduce this risk.
The company has called on regulators to investigate the drug supply chain which it says is "vulnerable" to cross border trade in illegal drugs.
The OFT said it would report back at the end of the year when it would have "a better understanding of the impact of the changes that are taking place and whether further action is required".The OFT said it would report back at the end of the year when it would have "a better understanding of the impact of the changes that are taking place and whether further action is required".
"The decision to undertake a market study reflects the importance of ensuring that the distribution of medicines involving pharmacists, hospitals and dispensing doctors, is timely, efficiently delivered and cost effective for patients," the government watchdog said. "The decision to undertake a market study reflects the importance of ensuring that the distribution of medicines involving pharmacists, hospitals and dispensing doctors, is timely, efficiently delivered and cost effective for patients," the watchdog added.
Alliance Boots said that its Unichem business would continue to operate as usual while the OFT inquiry was carried out.
"The announcement of this study does not affect the operation of the group's direct-to-pharmacy distribution arrangements with Pfizer," the company said/