Pfizer, the world’s largest drug group, could be forced to drop or amend its exclusive British medicines distribution deal with UniChem, the wholesale arm of Alliance Boots, under proposals being considered by the Office of Fair Trading (OFT).

OFT officials, who have been investigating competition in the UK wholesale medicine market since April, met the Department of Health (DoH) yesterday to discuss their preliminary findings, The Times has learnt. Among proposals under discussion are measures that could force Pfizer to invite other wholesalers to act as distributors of the company’s medicines.

Pfizer’s present “direct to pharmacy” model, launched in March, has cut out traditional drug wholesalers, a move condemned by independent pharmacists, MPs and rival wholesalers. They argue that, by restricting the supply of all Pfizer products, which are 15 per cent of the UK market for prescription medicines, to just one company, the model is a threat to competition, drug pricing, patient welfare and the NHS.

Previously, Pfizer sold its products to a range of wholesalers that competed to supply Britain’s 12,500 chemists and its hospitals and dispensing doctors.

Although the OFT has made no final decisions, it is in the late stages of drawing up its recommendations and is expected to publish its full report by Christmas. The DoH is not obliged to accept the OFT advice, but is expected to respond formally next spring. Pfizer, which says its new distribution system is designed to help to beat medicine counterfeiters, declined to comment.

Other drug groups, such as NAPP and Sanofi-Aventis, of France, are pressing on with plans to overhaul their UK distribution. They have taken a more conciliatory approach by appointing three wholesalers to distribute their medicines, thereby ensuring continued, albeit restricted, competition.

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