API and Alphapharm form alliance

Simone Roberts

The agreement, which has an initial term of five years, will see API become the preferred distributor for Alphapharm generic pharmaceuticals and Alphapharm the preferred provider to API’s branded pharmacies, including Priceline, Soul Pattinson, Chemworld and Pharmacist Advice pharmacies. The agreement is to take effect from the end of this month.

API’s managing director and chief executive, Stephen Roche, said the partnership was an important step in advancing API's total pharmacy offer because the generics sector is growing at approximately 10 per cent per year.

"Together the companies will offer a comprehensive product package, competitive pricing, plus marketing and development programs to help their pharmacy customers with long term growth," he said.

Alphapharm chief executive and regional director for Asia-Pacific, John Montgomery, said the relationship would be important through times of significant change in the industry, with the alliance giving pharmacists choices that were previously unavailable.

"API and Alphapharm both recognise that the changes in our industry mean that strong partnerships are vital to our future and by bringing leading brands together, this partnership offers the best options to pharmacists," Mr Montgomery said.

Acting national president of the Guild, John Dowling, said any development that strengthens a wholesaler’s ability to continue delivering a full-line service will be welcomed by community pharmacy.

"The essential services provided by full-line pharmaceutical wholesalers constitute the main artery by which medicines are supplied to community pharmacies and, subsequently, the public," he said.

API will continue to offer products from other generic pharmaceutical suppliers and, likewise, Alphapharm products will still be available from other wholesalers.

The announcement follows speculation that Alphapharm was wrapping up its deal with DHL and signing with one of the three major wholesalers: Symbion, Sigma or API. DHL has had a contract to deliver Alphapharm's PBS medicines since August 2006.