NHS 'at risk of drugs bill rise'

About 11% of the UK's branded prescribed drugs are from Pfizer

The Office of Fair Trading has found there is "significant risk" of higher drug costs for the NHS because of changes to drug distribution methods.

The watchdog began an inquiry into the supply of medicines earlier this year, after changes at the world's biggest pharmaceutical firm, Pfizer.

Pfizer began selling its prescription drugs through just one medical distributor, Unichem.

Such moves could cost the NHS "millions of pounds" and limit access to drugs.

Several other drug firms, including AstraZeneca have made, or will soon make, similar changes to the way they distribute their medicines, the watchdog said.

Patient safety

Pfizer said that its distribution scheme, known as Direct to Pharmacy, did not increase the cost of its medicines to the NHS.

The company said it held extensive discussions with the Department of Health regarding the development and implementation of the scheme

"Patient safety is our paramount concern," said John Young, Managing Director at Pfizer Limited.

"Our scheme has resulted in increased confidence in the secure supply of Pfizer medicines since its introduction in March 2007 at no additional cost to the NHS."

Minimum standard

The NHS spends £6bn a year on branded prescription drugs. Until recently, these medicines were distributed through a number of competing pharmacies.

The OFT said that manufacturers should have the freedom to use the distribution models that suit them, but recommended that the government take steps to ensure that changes in distribution did not lead to price increases.

To counteract the prospect of long waiting times for patients to receive medicines, it said that the government should ensure that manufacturers adopt minimum service standards.

"We are committed to maintaining our distribution service levels, which are in excess of 99%," Unichem said.

Pfizer has said the change in its distribution system was designed to tackle the rise in fake medicines.