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DTP & RWM Schemes

Alliance Healthcare and AAH sign solus deals

 

By Ailsa Colquhoun
9th of September

 

Alliance Healthcare has signed the following solus deals:

Arcoxia (Grunenthal Ltd*)

All Servier Products

From October 1:  All Leo Pharma (qualifying lines' discount: 7%)

 

AAH has signed the following exclusive RWM deal:

From October 1: All MSD products (discount 7%)


*Recivit and Palexia (Grunenthal Ltd) will be distributed through Alliance Healthcare, AAH Pharmaceutical & Phoenix Healthcare.

 

 

PSUK has also reduced the Chiesi discount for PSUK customers to 7%, effective from September 1. Further information  is available from the rebranded PSUK website.

 

Outstanding discount information is awaited.

 

For corrections or additions to this table, please email: ailsa.colquhoun@dispensingdoctor.org

 

DTP Schemes

DTP stands for Direct to Pharmacy schemes, although as they also extend to dispensing doctors, Direct To Purchaser might be more accurate.

 

In the DTP model, the manufacturer sells direct to the end customer, the dispensing contractor, using an exclusive or reduced number of wholesaler/s acting as distributors or logistics service providers only.

 

In this capacity, the wholesaler/s never owns the stock and so is in no position to offer any discounts.

DTP tends to be chosen by the larger firms. Glaxo was first, and Pfizer the second. Together, Pfizer, GSK, AstraZeneca and Merck account for just under 30% of the total UK pharmaceutical market (2010, source: ABPI)

 

There are also optional offers by some companies to sell direct or via mainline wholesalers. eg Roche and Bonviva via Williams, Takeda and Prostap via Clarity DTP. Ferring have made Pentasa, DDAVP Melts and Desmomelts available from Clarity DTP as well as mainline wholesalers.

 

An increasing number of companies use DTP models to distribute a limited range of lines, usually those that are low volume and high cost. Their other lines are distributed using the Reduced Wholesaler Model (RWM) - see below.

 

Specified lines DTP model

Pharmaceutical

Manufacturer

Chosen wholesaler

distributor

Lines affected

BAYER

Direct

Satisfex, Betaferon; ZD For more information click here

BRISTOL MYERS SQUIBB

Direct

Azactam, Etopophos, Orencia, Reyataz, Sprycel, Sustiva, Vepesid, Viaspan, Videx, ZeritFor more information click here

NOVARTIS

Direct, through Novartis' Patient Priority Supply Service

Aclasta, Afinator, Exjade, Glivec, Myfortic, Sandostatin LAR, Sandimmun, Tasigna, Tobi, Zometa

ROCHE

Direct

Pulmozyme (dornase alpha) ampoules 2.5mg and Valcyte (valganciclovir) tablets 450mg x 60

 

DTP Schemes

Pharmaceutical

Manufacturer

Chosen wholesaler

distributor

Details of discount/s offered and ZDs

ASTELLAS

Alliance

Affected products are listed here. 8% net pricing

To contact Astellas tel: 0203 379 8721 or e:ukcustomerservices@astellas.com

ASTRAZENECA

AAH, Alliance

Two-way model, comprising a flat rate discount applied at the point of purchase, replaces previous schemes with Forte Pharma

10 products affected; nine now attract discounts of 12% or less; See AZ letter for information on affected products

GSK

AAH, Alliance

12% across the board except Arzerra, Malarone, Toctino, Tyverb and Votrient

ELI LILLY

AAH, Phoenix

Three bands:

1] 15% Celance, Prozac

2] 8.5% Cialis, Cymbalta, Efient, Humapen., Strattera, Yentreve Zyprexa

3] ZDs Humulin  and Humatrope

IPSEN

AAH

All products are ZD.

See also RWM table below for Decapeptyl  

PFIZER

Alliance

Four bands:

1] Flat rate on Lipitor + Viagra: 25%

2] Depo-Provera: 5%3] ZDs; Full list of ZDs given here.

4] 7.5% on everything else

TAKEDA for Prostap

Clarity DTP

Discount available

Note: Prostap is also available via main wholesalers

 

RWM schemes

In Reduced Wholesaler Model Schemes (RWM or Reduced Wholesaler Agreements, RWA), a pharmaceutical company will use specific wholesaler/s partners (usually, two, although solo and three-way RWM models also exist). Apart from the restriction on the number of wholesalers used, the RWM model is based on the traditional wholesale business model, ie, the wholesaler/s owns the stock and can offer discounts in the usual way.

 

Since its introduction, the RWM model has been widely adopted by pharmaceutical suppliers. At the 2011 Dispensing Doctors' Association conference, it was said that only 20% of all items are supplied outside either an RWM or DTP wholesaling model (see story)

RWM

AAH

ALLIANCE*

PHOENIX (+ PSUK)

ABBOTT

Diabetes range: 7.75%

International range: 6.75%

Nutritional: ZD

International and diabetes range: 6%;

Nutrition and Omacor: ZD

International and diabetes range: 6%

Nutritional: ZD

ALCON LABORATORIES

7%

For qualifying products,click here (unique lines highlighted in red)

Other products: ZD

7%

For qualifying products, click here

(unique lines highlighted in red)

---------

ALK-Abelló

---------

Grazax 8%

Jext: ZD

---------

ALLIANCE Pharmaceuticals

8%

For applicable productsclick here

8%

---------

ALMIRALL

6%

7.5%

6% (+2%)

AMDIPHARM/MERCURY

Product list

Product list

---------

 ARCHIMEDES

7.5%
Product
 list

  ---------

---------

ARJUN

Normal discount

Eligible where applicable

-------

AYMES

Awaited

All products  ZD list

-------------

BAUSCH LOMB + M

4%

0%

0% (4%)

BAXTER ONCOLOGY

--------------

ZD products

For applicable products

--------------

BAYER DIABETES

7.5%

8%

6% (+2%)

BAYER Pharma (UK)

8%

 

7-13.25%

Click here for products and discounts

6% (+2%)

BOEHRINGER INGELHEIM

6.25%

7%

7% (+1.5 %)

BRISTOLMYERS SQUIBB ‡

7% discount (all customers, non ZD lines only)

For applicable products(plus Byetta/Bydureon)

7% discount (all customers, non ZD lines only)

For applicable products (plus Byetta/Bydureon)

--------------

CHIESI

7% to 31/7/14

6.75% from 1/8/14. For product information, click here

 

Awaited

ZD non PSUK customers;

7% PSUK customers

CLINISUPPLIES

8%

--------

--------

COLOPLAST


8%


Product range: 8%

--------

CONVATEC

Product list

Selected products

--------------

DAIICHI SANKYO

5%

5%

MDS: Olmetec & Sevikar - Individual to each customer

5%

DR SCHÄR

--------

--------

--------

EISAI for Aricept, Inovelon, Pariet, Zebinix and Zonegran

7.5%

7.5%

4% (+3.5%)

FERRING

6.75%

------

--------

FLYNN PHARMA

5.25%

--------

--------

GENZYME

ZD

ZD

ZD

GRUNENTHAL

Palexia: ZD

Recivit

Arcoxia
Palexia: ZD

Recivit

Palexia: ZD

Recivit

IPSEN for Decapeptyl

See DTP table

------

 MDS terms available   

JANSSEN

6%

7%

7% (+1.5%)

JUVELA (HERO)

---------

All lines: ZD

---------

KoRa/ NEWPORT

---------

All lines: ZD

---------

LEO

6.80%

(until Oct 1, 2014)

From October 1

7%

5.5% (+2%)

(until Oct 1)

LIFESCAN One Touch

9%

8%

7% (+ 1.5%)

LUNDBECK

--------

8%

--------

MEAD JOHNSON NUTRITION (UK)

0%

Selected products

--------

MEDA

Elidel Cream 2.5% (30g, 60g, 100g):

Elidel: 4%

EpiPen Auto-Injector and Muse: ZD

Selected products

Selected products

MEDAC

---------

for Metoject: ZD & leflunomide

---------

MERCK SERONO for Saizen

-----------

ZD

-----------

MERUS

-----------

Products

-----------

MITSUBISHI

-----------

Products

-----------

MSD

WMS discounts

Solo from October 1

7%

Until October 1, 2014:
0% for products available from Phoenix and WMS

7.5% for eligible products only available from Alliance

Until Oct 1: Phoenix discounts

NAPP

7% (excl. ZD lines)

7% (excl. ZD lines)

7% (+1.5%) (excl. ZD lines)

NESTLE

---------

Oral Impact range only: ZD

--------

NIPRO DIAGNOSTIC

Product range 
AWAITED

---------

8%

NOVARTIS (also see above for selective DTP lines)

 
7% from 1/7/14

7% from 1/7/14

--------

NOVO NORDISK

----------

8% (excl. ZD lines)

--------

NUTRICIA M

7% (qualifying ethical lines only)
Remainder lines: ZD
  

ZD

ZD

OTSUKA

--------

Abilify (7%)

--------

RECKITT BENCKISER +++

ZD

--------

--------

ROCHE DIAGNOSTICS

Awaited

Eligible Medical Discount on all lines
Meters are net priced
MDS: Accucheck: 15%

-------------

ROCHE PRODUCTS

8%

7% (excl. ZD lines) spend contributes to customer threshold

-------------

SANOFI AVENTIS

8 %

7%

Renagel, Renvela : ZD

7% (+1.5%)

SERVIER

LABS

-------------

7%

 

 

-------------

SHIRE

--------

6% on non ZD lines

 

Fosrenol and Xagrid: ZD

Click here for full product information

5% (+1%) on non-ZD lines
 

PSUK members: MDS discounts on Resolor and Reminyl

Fosrenol and Xagrid: ZD

SMITH & NEPHEW

--------

Product range

9%: Allevyn, Acticoat, Durafiber and Profore 

SOLVAY

Omacor only: ZD

Omacor: ZD

Colofac MR: 6%

Omacor only: ZD

SYSTAGENIX

Qualifying products: qualifying ethical discount

All lines: 8%

Products 

--------------

TILLOTT for Octasa++

  Qualifying ethical discount  

10.5%

MDS: 25%

--------------

UCB

7% until June 17th 2013, then 4.25%  

4%

Neupro is via Alliance only & ZD

 5%
 (+1.5%: PSUK)

ZD: Keppra. Viridal and Vimpat

ULTRAPHARM

--------

Products list: ZD

 

* (Alliance) Discount applied before invoicing. Therefore invoice price is net of discount. Medical Trading Terms apply in addition to Alliance Healthcare's standard terms and conditions of sale.  

www.alliance-healthcare.co.uk/useful-information/terms-and-conditions-of-sale/standard-medical-trading-terms/
 

 + Bausch and Lomb also use Mawdsleys and Sants

++ Octasa is also available from Mawsleys and Mawdsley pre-wholesale

‡ BMS Baraclude is only via Alliance.

+++ Reckitt Benckiser products below:

Temgesic Amp 0.3mg/1ml x5          Suboxone Sub Tab 2mg x28            Subutex Sub Tab 0.4mg x7

Temgesic Sub Tab 0.2mg x50         Suboxone Sub Tab 8mg x28            Subutex Sub Tab 2mg x7

Temgesic Sub Tab 0.4mg x50         Subutex Sub Tab 8mg

Exceptions to above arrangements:

Bayer - does not include Bayer Consumer Care

GSK - does not include GSK Vaccines, GSK Consumer Health and ViiV Healthcare UK products

Novartis - does not include Novartis Consumer Health

Roche - does not include Roche Diagnostics

Pfizer - does not include Wyeth Consumer Healthcare, Wyeth Vaccines or SMA Nutrition

Shire - does not include Shire Human Genetics

‡‡ Mead Johnson lines supplied by Alliance Healthcare & AAH

NUTRAMIGEN 2 LIPIL PWD 400G 24
NUTRAMIGEN 1 LIPIL PWD 400G 24
PREGESTIMIL LIPIL PWD 400G 24
ENFAMIL O-LAC LIPIL PWD400G 24
ENFAMIL AR LCP PWD 400G 24
NUTRAMIGEN AA PWD 400G 6

M- available from Mawdsleys

This information applies to Great Britain only

 

Surcharge table - October 2013

Wholesaler

Fuel

Ordered In Error

Low Spend

Additional information

Alliance Healthcare

Sliding scale based on AA roadwatch. Costs: £28.50-£37.50   For more information

£50 for returns over 2% of items ordered that month

£300 for total sales which do not meet the minimum threshold of £5000

1. Alliance Healthcare purchases (excluding exclusive supply lines) contribute to overall AH discounts.

2. No surcharges apply to products that are exclusive to Alliance

Forte Group terms

Forte Generics: 48% discount (+additional spend-related rebates)

Generics discount: 10.5%-12%(Eligible Medical discount)

CD and ZD discount: 6-8%

Qualifying compliance: From £300 worth of generics

Three membership levels; fees from £35
Additional benefits:

  • No low spend surcharges
  • No returns charges

AAH

Scale based on current diesel pump prices

Delivery costs range from: £21.00-£34.50

 

£75 charge if lines ordered in error are equal to or greater than 3% of total lines ordered that month

N/a from 1st of March, 2014

 

 .

 

Phoenix

£20.75 plus VAT

£60 for returns that are equal to, or exceed 1% of the total number of ordered units for the month

Low spend surcharge: £200 (+VAT) for non PSUK members for monthly sales that do not achieve £3,000 threshold

1. Phoenix Access accounts are not available to existing or previous Phoenix customers

 


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