Lecture 2

Business and IT Skills in Pharmacy

  • Instructor: Dr. Seána Hogan, MPSI

  • Institution: DIT Cathal Brugha St

Learning Objectives

  • Discuss the pharmaceutical supply chain.

  • List advantages of a well-run pharmaceutical supply chain.

  • List disadvantages or risks associated with poor performance in the pharmaceutical supply chain.

  • Discuss various manufacturers of proprietary and generic medicines in Ireland and the wholesalers.

Pharmaceutical Supply Chain Stages

  1. Manufacturers/Importers: Supply products to the market.

  2. Wholesalers: Store and deliver products to retail pharmacies.

  3. Retailers: Sell/supply products to patients.

Characteristics of the Pharmaceutical Supply Chain

  • Monetary Impact: A multimillion euro business.

  • Complexity: Involves numerous components; highly regulated for patient safety and product quality.

  • Competition: The market is very competitive.

Advantages of a Well-Run Supply Chain

  • Improved business efficiency.

  • Reduced costs from manufacture to market.

  • Reduced waste.

  • Increased market confidence and supply security.

Typical Supply Chain Plan

  • Plan Components:

    • Source: Suppliers and manufacturers.

    • Make: Warehousing and inventory management.

    • Deliver: Distribution centers and transportation.

Disadvantages/Risks of Poor Performance

  • Counterfeit Drugs: 10% of drugs sold worldwide are counterfeit (World Bank).

  • Reduction in patient safety when regulations are not followed.

  • Distribution and inventory issues lead to delayed market entry.

  • Uncertain consumer demand complicates supply chain management.

  • Effective risk management is essential for success.

Case Study: Foxmeyer Drug Company

  • Once a $5 billion company, 4th largest wholesaler in the US (1993-1996).

  • Bankrupted due to bad partnerships/decisions affecting supply.

Pharmaceutical Manufacturers in Ireland

  • Includes proprietary and generic medicine manufacturers.

  • Over 140 pharmaceutical companies operate within Ireland, primarily producing branded, patent-protected medicines.

Proprietary Manufacturers Examples

  • Pfizer

  • AstraZeneca

  • Abbott

Generic Manufacturers Examples

  • KRKA

  • Clonmel Healthcare

  • Mylan

  • Teva Pharmaceutical Industries Ltd.

Pharmaceutical Wholesale Distributors

  • Pharmaceuticals sourced directly from manufacturers or through wholesalers.

  • Licensed wholesalers listed on the HPRA website.

  • Major players include:

    • Uniphar Group: Dublin headquarters

    • United Drug: Multiple locations in Ireland.

Functions of Wholesalers in the Supply Chain

  1. Purchasing, storing, and distributing pharmaceuticals while assuring quality.

  2. Offering value-added services like sales analysis, marketing assistance, product training, and handling services.

Role of Retailers

  • Dispense medicines to consumers (community pharmacies, hospitals, health boards).

  • The exchequer accounts for about 70% of the prescription market.

  • Growth in retail pharmacies anticipated, particularly among chain and independent stores.

Main Pharmacy Chains in ROI

  • Lloyds

  • Boots

  • McSweeney's Group

  • Hickey's

  • McCabes

  • Walsh Group

  • Phelan Group

  • Bradley's

General Medical Services Payments (2003-2009)

  • Pharmacy expenditure from the General Medical Services (Payments) Board increased significantly from €937.7 million in 2003 to €1,678.8 million in 2009.