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API calls it quits on problem relationship

Simone Roberts

An increasingly "problematic" relationship between the three major wholesalers was behind the withdrawal of API from the National Pharmaceutical Services Association (NPSA), according to an API spokesman.

Last month API advised the NPSA, which represents the interests of API, Sigma and Symbion along with 14 other members, that it was quitting the association.

While reluctant to go into specifics, a spokesman for the wholesaler said one of the fundamental reasons behind the split was that the alignment between the members was becoming more problematic as each diversified their business.

"We considered it time with the alignment between members becoming more problematic not by action but just by design of the organisations and how they have changed. It's a consequence of change – the organisations are becoming more divergent through the strategies they are pursuing."

Sigma chief executive, Elmo de Alwis, said he was unaware of any issues between the three major wholesalers.

"As wholesalers you're competing but on issues of strategy and policy I can't see why you wouldn't to be aligned," he said.

Mr de Alwis said the association still had an important role to play despite the withdrawal of API.

"It's very important that we have an industry association that gives us the opportunity to discuss maters on behalf of the industry with the Guild and Government. Sigma certainly wouldn't want other people making decisions that affect our business without the opportunity to give input and that’s we will remain in the association," he said.

Symbion has also indicated it will remain in the NPSA.

API said it was committed to working co-operatively with the Guild and the pharmacy industry in negotiations for the next community pharmacy agreement.

18-Sep-2008