DHL denies Alphapharm to split

Simone Roberts

The report in The Australian on 27 September 2007 suggested generics company Alphapharm was wrapping up its deal with DHL and signing with one of the three major wholesalers: Symbion, Sigma or API.

But DHL has denied the report, saying the article was based on "rumour and speculation".

"Alphapharm has not given DHL any indication that they intend to terminate the arrangement.

"DHL and Alphapharm remain committed, now and in the future, to supplying and delivering PBS medicines to pharmacies across Australia," the company said in a statement.

DHL has had a contract to deliver Alphapharm's PBS medicines since August 2006. The agreement meant DHL qualified for a share of the community service obligation (CSO) funds established under the Fourth Community Pharmacy Agreement.

A DHL spokesperson denied that its CSO funding would be under threat if it lost the Alphapharm contract, saying its compliance with the criteria was independent of Alphapharm's support.

"The requirement on CSO Distributors is to stock certain PBS medicines including benchmark (generic) products, some of which are Alphapharm's products and many that are not," the spokesperson told Pharmacy News.

DHL's involvement in the CSO scheme is questioned by the three major wholesalers who argue that DHL is cherry-picking profitable lines to distribute and tapping into dollars intended for a service they do not provide.

DHL has said its presence in the market place offers immediate benefits to pharmacy as competition ultimately drives superior, cost effective service.