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Lilly UK Announces Changes to Medicines Supply and Distribution Services
Lilly UK today announced that it has decided to introduce a new medicines supply and distribution service following a comprehensive review and as part of an ongoing process of modernisation and transformation across the company.
The company has confirmed that it has appointed AAH Pharmaceuticals Limited and PHOENIX Healthcare Distribution Limited to distribute its medicines directly to its UK customers. The new supply and distribution service will be effective as of summer 2009 to allow sufficient time for Lilly to ensure it completes a robust implementation plan.
“Customers have told us that the reliability, frequency and integrity of medicine supply are of utmost importance to them”, said Andrew Hotchkiss, General Manager, Lilly UK. “Lilly has listened and responded – the changes we are making directly address these key needs. The new supply and distribution service will ensure a more practical, reliable and manageable distribution of Lilly medicines in the UK.”
Lilly’s decision to work with AAH Pharmaceuticals Limited and PHOENIX Healthcare Distribution Limited will ensure that choice and diversity in the wholesaling marketplace is preserved. Through both service providers Lilly will ensure there is 100% coverage across the UK, and for the majority of Lilly customers, there will be no change in the way they order Lilly medicines.
Lilly has recognised that the current supply issues which have affected the whole pharmaceutical industry have highlighted the need to change and improve the service that pharmacists receive. Customers should be aware Lilly currently runs an emergency direct to pharmacy scheme for those pharmacists who need urgent access to Lilly medicines for their patients. Lilly also believes its new distribution arrangements will strengthen the supply chain against the threat of counterfeit medicine. Both of these factors have been a key driver for change.
Further details of the new supply and distribution service and the commercial terms, which are currently under review, will be communicated in 2009. Lilly has written to all customers to announce the changes that will be made. Should customers have any queries regarding the new medicines supply and distribution service, they can contact the Lilly UK customer care line on 01256 315999.
To download the press release in full please click on the link below;
Lilly UK press release 18/11/08
Sue Sharpe, Chief Executive of PSNC, commented:
"This announcement follows action by other manufacturers to move from wholesaling to DTP schemes in order to better control the supply chain. Lilly have assured us that they are confident that supplies to pharmacy will be effectively managed with the introduction of the new arrangements. We will be meeting with them to discuss the implementation plans in detail.
At present we do not have any information on the terms of supply to pharmacies, but the mechanisms for measuring purchase profits in the supply chain will take account of and adjust for any changes resulting from the new arrangements.
The implications of the additional costs and workload for those contractors who need to set up and manage new accounts, will be addressed in our funding negotiations with the Department of Health."
A summary of recent manufacturers' distribution changes can be found in the Funding and Drug Tariff Section of the Website.
Posted 18 November 2008