Ann: Market Update , page-5

Yes the Pfizer deal was the tipping point in the move to reduce trading terms. I expect some of the large "priviledged" discount groups will be hit with working capital issues as they cope with the change.

Also not sure if it is Australia wide but the Pfizer / DHL arrangemet has had significant issues for my pharmacy in SA. Deliveries have not always been next day (particularly for the first month). Communications between Pfizer/DHL/Corum broke down when setting up our system for online ordering. Also we are having to increase our inventory of slower moving Pfizer lines where we only kept a few on the shelf when we could get replacements next morning from our local wholesaler. When we have an out of stock situation I cannot confidently say to my customers it will be in next day. Weekends are an issue for urgent items. If we have an urgent scrip Thursday afternoon/evening the best we can do it is Monday v's Friday previously. We also had Saturday deliveries. Not good enough Pfizer!!!!

Having been in the industry for 40 years I have seen decisions from manufactures to go to direct supply before and then deciding later to go back to regular wholesaler distribution because they could not justify the economics or service levels.

I would think at the moment from my perspective Pfizer are not stricly meeting PBS supply covenants.

If DHL really want to get into the pharmacy trade in Australia why don't take over API or Sigma and be serious and just not "cherry pick".

Our recent governemnt policies (both sides) towards the PBS and the local pharmaceutical industry in general has been appalling. All they can see is dollar signs at the expense the pharmacy profession (growth of discount chains)and local manufacturing and all the R&D and QA/QC staff thet went with it. Who would want to do a pharmacy degree these days to work in a discount chain and have no options in the pharmaceutical industry......shame!