Genentech revamps distribution policy

June 12, 2006

Genentech is working with five wholesalers in an initiative designed to streamline distribution of the firm's top revenue-producing pharmaceuticals. Novation, the contracting services company of VHA Inc. and the University HealthSystem Consortium, told its customers that Genentech is in the process of modifying its new distribution policy.

Genentech revamps distribution policy

Genentech is working with five wholesalers in an initiative designed to streamline distribution of the firm's top revenue-producing pharmaceuticals. Novation, the contracting services company of VHA Inc. and the University HealthSystem Consortium, told its customers that Genentech is in the process of modifying its new distribution policy. The San Francisco-based drug manufacturer is in the final phases of its plans for distributing the brand-name products Avastin (bevacizumab), Herceptin (trastuzumab), and Rituxan (rituximab) to hospitals. In April, the company announced that it would distribute those three products only through the specialty wholesale divisions of AmerisourceBergen and McKesson. Genentech also announced plans to send drop shipments to regional wholesalers Morris & Dickson and Borschow Hospital & Medical Supplies. Some hospital pharmacists have complained that Genentech's new policy could increase their drug distribution costs. The company said it expected to fully implement the changes by July 1.

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