Novartis is to limit the wholesalers that can distribute its medicines in the UK, making it the latest pharma company to adopt a direct-to-pharmacy arrangement.

Contracts have been signed with just two wholesalers, AAH Pharmaceuticals and UniChem, who from August will be sole distributors of Novartis' drugs to community pharmacists and dispensing doctors.

Novartis said in a statement: "This approach enables us to operate more efficiently while maintaining effective supply and levels of service. For the vast majority of our customers, there will be no change in the way they order Novartis UK medicines."

The company said it conducted a rigorous assessment before awarding the contracts, but between them, the two firms chosen had already dealt with over 80% of Novartis' products in the UK.

The new agreement is a further bonus for UniChem, which is already sole distributor for Pfizer.

Pfizer first adopted this direct-to-pharmacy (DTP) tactic last year. AstraZeneca followed earlier this year and more companies, such as Lilly, are understood to have considered the move.

Last year the Office of Fair Trading investigated the practice following complaints about Pfizer's DTP arrangement. It decided pharma could continue to use DTP tactics, but warned they might push up prices for the NHS.

However, pharma companies employing this system have said it stops counterfeit medicines finding their way into the supply chain, which is a growing problem in Europe.

The European Commission is seeking a new policy to clamp down on counterfeiting, and will look for greater scrutiny and accountability within the supply chain for medicines ¿ something that DTP provides.

But pharmacists say it is also intended to block parallel imports - a legal trade, but one that hits UK pharma company profits. The British Association of Pharmaceutical Wholesalers (BAPW) is concerned some of its smaller members could be put out of business due to single distributor deals like Novartis'.

The European Commission has not made clear whether or not it is seeking to squeeze out parallel trade, which would essentially benefit the industry.

The issue will be discussed at the annual meeting of the European Federation of Pharmaceutical Industry Associations (EFPIA) later this month.

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pharmafocus@wiley.com