Pfizer Considers Controversial Distribution System

November 2006 | Company News Alert

To the annoyance of local wholesalers, US drugmaker Pfizer is considering implementing its exclusive distribution system in Poland. The move follows a similar plan in the UK which critics say creates a monopoly that will lead to higher drug prices. Pfizer has defended its model, saying that it eliminates the counterfeiting of pharmaceuticals and simplifies the supply chain. BMI believes that Pfizer's plan is designed to prevent parallel trading of its products, which is completely legal in the EU even though it undercuts the margins of drugmakers. As such, we think that Pfizer will come under pressure from competition regulators to amend the proposed schemes.

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