Concern over AZ direct move

PHARMACIES are being urged to contact their local MP, Health Minister Greg Hunt, the Pharmacy Guild and AstraZeneca (AZ) over the company’s move to shift about a quarter of its products to direct distribution (W 30 Oct).

Marc Clavin, chair of the Amcal Guardian National Council (AGNC), has written to Amcal and Guardian member pharmacies saying the AZ move is a “substantial change that will impact your pharmacy business,” due to higher-cost medicines bypassing wholesalers.

Clavin said AstraZeneca’s action to “cherry-pick profitable items for distribution to their own benefit... threatens the entire medicines supply chain system”.

By supplying direct the distributor does not have to meet the 24hour delivery requirement, is not restricted to sell at or below the approved price to pharmacy, does not need to sell to all pharmacies or meet a ruralͬremote quota, and does not need to complete the monthly CSO Agency report.

AstraZeneca is also not subject to any external audit requirements on their service obligations.

Clavin said there will be significant impacts on the whole system of pharmaceutical supply in Australia should manufacturers be allowed to remove profitable PBS medicine from the wholesale channel but “leave the current system to pick up everything that is unprofitable.

“Our unique system of distribution that meets the needs of small rural pharmacies, just as much as large CBD operations, will also be put in jeopardy.”

The solution, Clavin said, is to ensure all PBS listed medicines be made available to CSO wholesalers at equivalent pricing, in addition to any direct distribution channels.

The National Pharmaceutical Services Association has warned that without such action “cost to pharmacy will go up, service will go down and there will be a negative impact on customers”.