Pharmaceutical Manufacturers’ Attempts To Control Distribution In Europe May Not Succeed, Warns New Report

Top Quote Piribo: New report on pharma distribution in Europe End Quote
  • (1888PressRelease) March 10, 2008 - Piribo, the online destination for business intelligence for the biotech and pharmaceutical industry, has now added a new report which finds that mistrust between pharmaceutical manufacturers and wholesalers will be instrumental in transforming the European medicines supply chain.

    The report, “Pharmaceutical Distribution in Europe - The emergence of direct-to-pharmacy supply” finds that while so far, pharmaceutical manufacturers have managed to drive changes to suit their interests, with opposition to their moves having had little effect, things are set to change.

    Authors of the report predict that pharmaceutical manufacturers may not have things all their way in the future as new relationships with select wholesalers will lead to a new breed of distributor. As they gain power in these relationships and expand their portfolio of business interests across Europe and beyond.

    Although a variety of players become involved at different stages of the supply chain, the most influential are pharmaceutical manufacturers, wholesalers and pharmacists. The report finds that it is the interaction between these three sets of parties that dictates the pharmaceutical distribution process.

    As of 2008, the EU consists of 27 Member States, representing a population of nearly 500 million people who rely on the supply chain to deliver the medicines they need.

    The UK pioneered changes in the traditional supply chain where manufacturers tended to sell their products to wholesalers who then competed among themselves, based on price and service offerings, to become the main suppliers to pharmacies.

    The study finds that one key change was the adoption of a direct-to-pharmacy (DTP) model, where pharmaceutical manufacturers sell their products directly to pharmacies and appoint a limited number of logistics service providers (LSPs) that are paid a fee to deliver the medicines on their behalf.

    The report says that for pharmaceutical manufacturers this model is ideal as it allows them to exert greater control over the supply chain. But it predicts that change in the European supply change is imminent as wholesalers lobby to oppose this model.

    “Pharmaceutical Distribution in Europe - The emergence of direct-to-pharmacy supply” is available in pdf format from Piribo. For more information, go to:

    About Piribo.
    Piribo ( is a UK-based independent online store supplying business information on the pharmaceutical and biotechnology industries. The website now carries over 7,000 English language titles including, market reports, studies and books and is the UK’s largest online biopharma information store. Subscribers receive a free monthly newsletter and email alerts on new titles in their areas of interest. The company was established in 2004.

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