1) Pfizer is launching their own generic products at massive...

1) Pfizer is launching their own generic products at massive discount & they will sell directly to pharmacies. Pharmacies will not buy generic medicines from wholesalers.

2) Many drug companies are moving away from wholesalers like API. There are some big drug companies will move away from wholesalers & use Pfizer's distribution chain (at lower fees of course). Some companies offer more discounts if pharmacies use Pfizer supply chain instead.

3.) Also consumers are cutting back spending on front-shop products in pharmacies, unless big discounts. Big discounts mean API's margin will shrink. Front shop products usually account for 40-70% of sale in pharmacies. Don't forget front shop products Coles & Woolies can also sell them at much cheaper prices. Coles & Woolies have bigger buying power than API.