News & Trends - Pharmaceuticals

Pfizer’s Upjohn business to change distribution model

Health Industry Hub | February 11, 2020 |
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Upjohn Australia, a subsidiary of Pfizer, is on track to distribute its medicines through Community Service Obligation (CSO) pharmaceutical distributors from 24 February 2020, following the company’s recent decision to operate separately from Pfizer’s BioPharmaceutical business and move away from a direct-to-market distribution model.

Upjohn General Manager Australia and New Zealand Gareth Richmond said the repositioning of the distribution of Upjohn medicines with wholesalers is a commercial decision to ensure the business is in the best position for growth going forward.

Upjohn signed contracts with another four wholesale distribution partners, including Sigma, API (Australian Pharmaceutical Industries), CH2 (Clifford Hallam Healthcare) and CHS (Central Healthcare Services), building on its first wholesale distribution agreement signed with Symbion in December 2019.

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Effective 24 February 2020, Upjohn will only distribute its medicines to pharmacies through Community Service Obligation (CSO) pharmaceutical wholesalers.

“We understand change can be disruptive and it is our priority to ensure our pharmacy customers transition smoothly to our new model,” Mr Richmond said.

“We are working closely with our wholesaler partners and the point-of-sale system providers to ensure the move to the wholesaler model is operationally aligned, and that customers and patients have a seamless experience during this period,” he said.

Pfizer Finance Director Bradley Apps said that despite Upjohn’s move to wholesale distribution it is business as usual for Pfizer BioPharma.

“Australians will continue to have access to Pfizer’s innovative, generic and biosimilar medicines through next-day business delivery through Pfizer Direct supplying more than 5,600 pharmacies in Australia under our direct distribution agreement with DHL,” Mr Apps said.

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