OFT holds fire on new drug distribution model

The Office of Fair Trading (OFT) published its long-awaited market study on medicines distribution this week. It is a response to the trend towards leading manufacturers selling directly to pharmacies rather than to wholesalers and entering into often exclusive deals with logistics service providers. This study follows the High Court's refusal in March 2007 to grant an injunction to a group of wholesalers who challenged Pfizer's logistics arrangement with Unichem on competition grounds.

We have put together a brief analysis of the OFT's findings.