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http://www.pharmacynews.com.au/news/pharmacy-alliance-puzzled-by-api-agreement-claims

Pharmacy Alliance ?puzzled? by API statement
NICK O?DONOGHUE
Claims by pharmacy wholesaler, API,
it had an ongoing deal with Pharmacy
Alliance are being challenged by the
buying group.
Responding to a claim that an
agreement had been reached late last
year, for API to remain the preferred
supplier to Pharmacy Alliance members,
the group said it was ?puzzled?
by a letter, dated 6 April, which said
there was no contractual relationship
between them.
However, API told Pharmacy News
that the letter was sent after Pharmacy
Alliance?s decision to unilaterally
repudiate the agreement that had
previously been in place between the
parties.
?We were therefore entirely correct
to inform the pharmacists concerned
that API does not have a contractual
relationship with Pharmacy Alliance,?
a spokesperson said.
The letter, signed by API general
manager of pharmacy and consumer
brands, Richard Vincent, stated that
?contrary to yesterday?s communication
to Pharmacy Alliance members
by Simon Reynolds [the group?s chief
executive], API is unable to offer your
current set of terms through Pharmacy
Alliance.
?The simple fact is that API does
not have a contractual relationship
with Pharmacy Alliance.?
API confi rmed that as recently as
December 2010, an agreement had
been reached with Pharmacy Alliance
on the terms of an on-going commercial
arrangement maintaining
API as Pharmacy Alliance?s preferred
wholesaler.
The war of words between the two
sides, has escalated in recent days,
with Pharmacy Alliance announcing
its intention to issue a tender, which
API says will result in multiple suppliers.
?This action by Pharmacy Alliance
effectively amounted to a unilateral
repudiation of the agreement with API.
?In API?s view, this repudiation
was not justifi ed and is in breach of
the agreement. API is considering its
legal options as a consequence,? the
statement said.
A spokesperson for Pharmacy
Alliance said they were ?puzzled by
today?s claim by API that Pharmacy
Alliance has somehow breached it?s
preferred supply agreement? given
that API wrote to pharmacists on 6
April stating that API has no agreement
with Pharmacy Alliance?.