Pfizer-Unichem deal faces high court fight

02-03-2007

Pfizer-Unichem deal faces high court fight
A deal between drug manufacturer Pfizer and wholesaler Unichem is being challenged in the high court today.

The injunction, launched by a group of other wholesalers, claims that by making all of its prescription drugs available to only one drug wholesaler Pfizer is limiting competition and cutting choice.

Pfizer, the NHS' leading medicine supplier, reportedly makes 15 per cent of all prescription drugs in the UK. It has attacked the injunction as an attempt by rival wholesalers to protect their own business interests.

Dr David Baker, chief executive of the Dispensing Doctors Association (DDA), told BBC Radio Five Live that his organisation was supporting the wholesalers going to court.

"If you have a single supply chain and that breaks down there is going to be nowhere else for us to be able to get Pfizer drugs, which is very worrying," he explained.

Dr Baker said he was also worried that other drugs companies may follow in Pfizer's footsteps and narrow their supply chains as well.

"There are a number of other companies who are looking at similar models, although we understand none are actually looking at the single supplier route."

The Office of Fair Trading is also considering whether the Pfizer-Unichem deal breaks competition rules.


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