That story from Pfizer's John Latham (any relation to Mark?)is...

That story from Pfizer's John Latham (any relation to Mark?)is partly correct but no justification for their decision making.

As part of the CSO agreement Full line wholesalers are required to keep and distribute all manufacturers PBS products.

Why is Pfizer leaving their OTC and Consumer Brands with the Wholesalers then? Simple answer is that range very large and the deal, demand and distribution structures are more complex and would require more wharehouse space that Pfizer simply does not have access to.

It would not surprise me (if Pfizer will not supply their PBS products to the Wholesalers) that Sigma, API and Symbion may take this matter to court for restraint of trade given that the Wholesalers have a legal obligation to be able to supply a full range of PBS products to all Pharmacies of all sizes in all locations. What about the smaller Pharmacies that my not want to or be able to meet the criteria for dealing direct with Pfizer.

The special relationships other companies have with the wholesalers I imagine are those gouging market positions in the generics arena as some blockbuster products (like Pfizers Lipitor comes off patent)come of patent over the next year or so. I think the real reason behind this move is to try and lock in pharmacies to supply arrangements which will have conditions requiring maintenance of Lipitor volumes.....pure speculation!!!

Don't think we have seen the end off this by a long way. Don't forget a huge number of pharmacy owners hold shares in API and/or Sigma!!!!!!! They will not be happy.