4th Apr 2007 07:00
Office of Fair Trading04 April 2007 61/07 4 April 2007 OFT LAUNCHES MARKET STUDY INTO UK MEDICINES DISTRIBUTION The OFT has today launched a market study into the distribution of medicines inthe UK. This decision follows recent and proposed distribution changes by leading UKmedicine suppliers. Until recently all medicines were distributed through anumber of competing wholesalers but in March 2007 Pfizer Limited began sellingprescription drugs solely through one wholesaler, Unichem. Other suppliers arealso considering introducing significant changes to their own distributionarrangements. The study will consider the likely impact of such changes on competition, theNHS and patients and will report back by the end of the year. Download a shortdocument outlining why UK medicines distributionmeets the prioritisationcriteria for launching a study, and the focus and timescales of the study.The decision to undertake a market study reflects the importance of ensuringthat the distribution of medicines involving pharmacists, hospitals anddispensing doctors, is timely, efficiently delivered and cost effective forpatients. The NHS spends more than £10 billion per year on the purchase ofprescription medicines. UK pharmacies currently provide more than 800 millionprescriptions per year. At the end of the market study, the OFT will have a better understanding of theimpact of the changes that are taking place and whether further action isrequired. Ann Pope, OFT Director in Markets and Projects, said: 'This is an important market study in one of the OFT's priority sectors. Recentchanges in the distribution arrangements for some medicines have caused greatconcern to many in the market. It is important for us to understand the likelyimpact of these changes on patients and costs to the NHS.' NOTES 1. Interviews are available to the media. 2. The OFT has received complaints regarding the change to the workings of thesector which has prompted concern among pharmacists, dispensing doctors andcompeting wholesalers. In examining the issues the OFT will consult industry andgovernment and consider the influence of sector specific regulations, paralleltrade and counterfeit products. 3. Healthcare is an OFT priority sector. The efficient distribution ofmedicines is necessary to their timely and cost effective provision. In Februarythe OFT also recommended that the Pharmaceutical Price Regulation Scheme (PPRS)should be reformed, to deliver better value for money from NHS drug spend and tofocus business investment on drugs that have the greatest benefits for patients. 4. The gathering of information in market studies is undertaken by the OFTunder section 5 of the Enterprise Act 2002. Possible outcomes of a market studyinclude: giving the market a clean bill of health; publishing information tohelp consumers; encouraging firms to take voluntary action; encouraging aconsumer code of practice; making recommendations to the Government or sectorregulators; investigation and enforcement action against companies suspected ofbreaching consumer or competition law; a market investigation reference to theCompetition Commission. MEDIA enquiries: 020 7211+ Corinne Gladstone 8899 Alex Hunter 8900Jonathan Marciano 8133 Nick Spears 8901Nnenna Oleforo 8898Out of hours: mobile: 07774 134814 fax messages: 020 7211 8961Copies of press notices: Ext. 8993http://www.oft.gov.uk PUBLIC enquiries: 0845 7224499 [email protected] reports and consumer information leaflets are available free from:OFT, PO Box 366, Hayes UB3 1XB 0800 389 3158 [email protected] This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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