Pharmacy Daily | Upjohn Australia splits from Pfizer Direct

PFIZER has confirmed that its off-patent branded and established medicines business, Upjohn Australia, will transition to a traditional distribution model through Community Service Obligation (CSO) wholesalers in Feb 2020 (PD breaking news).

The move will see Upjohn no longer distribute via the Pfizer Direct platform, with the company saying it "sees the traditional wholesaler model as a good strategic fit for the Upjohn business in Australia".

A total of 18 medicines will shift to wholesale distribution effective from 24 Feb 2020, with Upjohn GM Australia and NZ, Gareth Richmond, saying the repositioning was a "commercial decision to ensure the business is in the best position for growth going forward, and to ensure patients continue to have access to its medicines".

"Upjohn has been tasked with embracing an innovative mindset, being agile and essentially thinking like a start-up," he said.

"Given our diverse product portfolio and the breadth of sales we have in Australia, re-evaluating our distributor relationship and working with wholesalers was the best option for our business to evolve," he said.

Pfizer Australia Finance Director, Bradley Apps, said the Upjohn move would not impact the remaining BioPharma business of Pfizer in Australia, which would continue to distribute via the Pfizer Direct model.

He said the BioPharma products would continue to be available via next business day delivery to "virtually all pharmacies in Australia".

"Pfizer remains committed to continue partnering with our existing logistics supplier to ensure all customers and patients have access to our medicines at every location in Australia as part of our direct distribution agreement," Apps said.

Upjohn Australia has already signed a new contract with Symbion, and expects to finalise negotiations with other wholesalers shortly.

The move follows AstraZeneca's decision to drop its direct distribution model in Oct (PD 12 Sep).