Ann: Trading Update, page-7

Pharmaceutical Companies Management periodically think they can do this more efficiently and cost effectively that the current CSO full line wholesalers who have historically served pharmacy well. This has been going on for the 40 plus years I have been a pharmacist (recently retired). Companies try this and generally find they still need the major wholesalers in the end. Logistically they can't do it any better than API, Symbion, Sigma etc....and I doubt much cheaper.

As it effects all the CSO wholesalers they will have to look at relatively minor adjustment to payment terms to pharmacies to make up any lost business. Pharmacies won't appreciate the change! Extra company to order from, extra delivery and invoicing to handle, changes to their systems for stock control etc. Where you can order small quantities every day if needed from the CSO Wholesalers,  pharmacies will have to increase stock levels because when the manufactures go direct they set limitations on orders and minimum quantities.

Fair chance of a huge backlash from pharmacies and various representative groups....so it may not even get off the ground or last long if it does. Pfizer going direct was enough but another big companies wanting to go direct might really stir debate at many levels.

You can argue that it has worked for Pfizer who established direct distribution using DHL who have spent a lot of money to make it work for them. I have lost touch now but from my experience there were a lot of issues early on and it was a nuisance to have to do the separate order for Pfizer products. DHL are still keen to get a strong foot in the door for pharmacy distribution but the current CSO arrangements leave them significantly out in the cold See their submission to the 6CPA:

http://www.health.gov.au/internet/m...79-2016-23-09-dhl-supply-chain-submission.pdf

Could get very political but one thing pharmacists don't want is to have to deal with a multitude of direct suppliers. The current system has evolved to be the best way of ensuring patient access to the medication in an efficient and timely manner.

Would not be surprised if DHL are behind all this who have always just wanted the cream of the top of distribution to pharmacy.