1 / 12

‘Direct to Pharmacy’

‘Direct to Pharmacy’. David Watson Trade Director Pfizer Ltd. Headlines. We’ll boycott Pfizer brands, warn contractors C&D 7 October 2006. This is a bad move for Pharmacists Steve Dunn , C&D 7 October 2006. Public scrutiny will exonerate Pfizer The Times October 2006.

kiri
Download Presentation

‘Direct to Pharmacy’

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. ‘Direct to Pharmacy’ David Watson Trade Director Pfizer Ltd

  2. Headlines We’ll boycott Pfizer brands, warn contractors C&D 7 October 2006 This is a bad move for Pharmacists Steve Dunn , C&D 7 October 2006 Public scrutiny will exonerate Pfizer The Times October 2006 Pfizer upsetting the apple cart Pharma Times November 2006

  3. Why the change? Changing portfolio Supply chain control Patient safety Integrity of supply Power of wholesalers Pharmacy customer

  4. Appointment process • All UK wholesalers with national coverage were invited to participate in negotiations – RFP • After intensive discussions and a comprehensive due diligence programme, Unichem were appointed as an LSP on an initially exclusive basis • After initial AAH agreement to heads of terms, AAH withdrew in January 2006, notified to Pfizer by Celesio Headquarters

  5. How does DTP work • Pharmacists can buy Pfizer products directly from Pfizer, ownership and visibility of Pfizer products remains with Pfizer until sale to the pharmacist • Pfizer has appointed UniChem as a Logistics Service Provider (LSP) to carry out a full range of services on behalf of Pfizer, for which Pfizer will pay UniChem a fee per pack • Pfizer does not sell Pfizer products to Unichem or to any other wholesaler, Unichem does not act as a wholesaler in relation to UK sourced Pfizer products • Pricing and discounting on Pfizer products the responsibility of Pfizer

  6. Challenges you’re forcing me to buy from UniChem… You can’t cover the whole of the UK You can’t dictate your own discount scheme UniChem don’t have the capacity UniChem will preferably supply Boots What if UniChem go on strike

  7. My mailbox

  8. First 3 months Key metrics: • 97% of all ‘dispensing points’ in the UK have ordered products from Pfizer • 6.9 million units have been delivered • 99.7% ‘on time, in full’ delivery accuracy

  9. Commercial Opportunity Pfizer has the ability to through DTP to develop a new pharmacy commercial value proposition and service approach • UK Pharmacy has an emerging role in the management of patient treatment through the new Pharmacy contract • Changes in Pfizer portfolio in the next few years mean pharmacy purchasing choice becomes a more important factor in the growth of many Pfizer products • Pfizer are developing a number of customer facing strategies to support our wide portfolio, and provide additional services to pharmacy

  10. OFT short term study • Market study – not a review specifically on Pfizer • Many different (and conflicting) interests and opinions have been heard • Market practices on discounting arrangements in the UK are not transparent • Evolution of the pharmaceutical distribution market difficult to predict

  11. What happens next • Other Pharma Co’s may make similar changes (AZ, Lilly, Sanofi Aventis) • Some may focus on Hospital distribution rather than the entire community pharmacy customer base • Wholesaler business impact depends on market change over time – not simply Pfizer move • Wholesalers willingness to embrace change and compete effectively against new entrants in sector? • Pharma Industry increasingly focusing on the role of the Pharmacist in provision of healthcare

  12. david.s.watson@pfizer.com

More Related