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BAPW publicly challenge quota system.

The BAPW’s Executive Director has written to Chemist and Druggist magazine expressing his disappointment at the lack of consultation from manufacturers on important changes they’ve made to the supply chain. The full text of the letter is below.

Dear Sir,

If emulated in the UK, the move by Pfizer to cut wholesalers out of the supply chain in Spain (C&D Feb 19th, p.10) will be yet another retrograde step, with ill thought out consequences.

For the BAPW, consultation and communication with our stakeholders is key. Unfortunately, many manufacturers can’t be relied upon to do the same. Two recent examples of this are the quotas being imposed on wholesalers and GSK’s decision (C&D Feb 19th,p.6) to completely overhaul its trading terms with wholesalers and pharmacists.

Manufacturers, sitting at the beginning of the supply chain, have a responsibility to act solicitously in this respect. The arbitrary imposition of quotas on wholesalers is causing difficulty right across the supply chain. Manufacturers argue that global UK supplies stay the same, but demand in Motherwell cannot be met by supplies in Maidstone and patients suffer when manufacturers don’t explain to wholesalers what quotas have been applied or when they kick in. There have been shortages reported to me by BAPW members.

Quotas are stopping the whole sector from working together properly. Most critically of all, they have the potential to endanger the lives of patients by preventing the safe and effective supply of medicines to where they are needed.

Before manufacturers act arbitrarily, they should talk to wholesalers to make changes work. BAPW members can explain the effects of a particular change anywhere in the supply chain: we are uniquely placed to be able to do this.

GSK’s latest pricing ‘restructuring’ is another example of manufacturers acting unilaterally and comes at a time when the supply chain is still experiencing the impact of the new PPRS agreement. If parts of the chain continue to act outside existing agreements, what response can we expect from Government in the future to ensure the effective supply of medicines to the NHS and its patients?

Martin Sawer

Executive Director BAPW