AstraZeneca have confirmed that from the 2nd February 2008, they will deliver their medicines directly to pharmacies in the UK through their two agency partners, AAH and UniChem.

In a letter sent yesterday to all community pharmacies, AstraZeneca have also outlined the financial terms on which they will supply pharmacies in future. Different AZ products will attract different levels of discount with the same level of discount applied for a particular product regardless of the volume purchased. In addition, contractors may qualify for a retrospective rebate according to the total value of AZ products purchased in a given month.

Commenting on AstraZeneca's announcement, PSNC Chief Executive, Sue Sharpe said:

"This change is expected to result in a further increase in the number of products where the purchase price exceeds the reimbursement price. PSNC is urging the Department of Health to change the pricing arrangements for branded products in its current review of the PPRS arrangements. This is something that the OFT have also recently recommended to prevent an increase in NHS costs from manufacturers changing their arrangements. Initial discussions have been held with the Department of Health on this issue and it is hoped that this will be resolved early in the New Year."

Notes:

1. The Pharmaceutical Services Negotiating Committee (PSNC) is the body that represents community pharmacy on NHS matters and seeks to secure the best possible NHS services provided by pharmacy contractors in England and Wales.

2. A summary of recent changes to manufacturer's distribution arrangements can be found here.

3. A summary of OFT market study into medicines distribution can be found here.

AstraZeneca, United Kingdom

Pharmaceutical Services Negotiating Committee

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