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REPORT


Paul C. Julian, Executive Vice President and Group President for McKesson Distribution Solutions, commented, “We are extremely pleased to announce the execution of an agreement to add the pharmaceutical distribution business and other healthcare assets of UDG to McKesson’s European business. At McKesson, we are committed to providing our customers with more efficient delivery of healthcare products and services globally.”


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“For Sangers customers now and most importantly, in 2016 it is business as usual. The deal is subject to approval by the European competition and national competition authorities and therefore the completion is dependent on the timeline of the clearance process.”


Another Pharmacist based in Lisburn commented, “I have nothing but praise for Sangers and its management who have supported me from my first day in business. It is obvious that UDG Healthcare now want to move on from distribution and has succeeded in selling to McKesson.


What is expected in terms of job losses? “UDG staff will continue to be employed by UDG. UDG shareholder approval was granted on 13 October 2015 and, as part of standard procedures, this signals the start of discussions with the regulators,” he said.


Northern Ireland pharmacists have said this severely limits them in their distribution decisions, and has reduced the competition in this market.


But Kris adds, “Independent pharmacies are extremely important customers and, as we have shown in


12 pharmacyinfocus.co.uk


other markets, we work closely with the retail pharmacy community to meet their needs fairly and equitably.


“McKesson is an experienced pharmaceutical wholesaler and distributor, and is committed to delivering its retail pharmacy customers with the best possible service to help them meet patient and customer needs. UDG already offers a valued service and McKesson aims to use its broad expertise to build on that offering and develop further benefits for the retail pharmacy community across Ireland and Northern Ireland. In the UK, where there is already a similar offering, independent retail pharmacies are benefiting from greater support and access to innovative pharmacy services and products.”


The takeover follows McKesson’s acquisition of 281 Sainsbury’s- controlled pharmacies in the UK. Just prior to the UDG purchase news breakout, the UK's competition regulator said it is inviting responses from stakeholders on J Sainsbury PLC's proposed sale of its pharmacy business to Germany's Celesio AG, the owner of the LloydsPharmacy chain.


The Competition and Markets Authority said it has invited responses from "any interested


“We do not believe there to be any potential conflicts. In fact, we are acquiring these leading distribution businesses in Ireland to complement our wider portfolio. We will maintain and enhance the businesses we are acquiring, whilst seeking out further opportunities for growth that reflect the changing demands of the modern healthcare system”


party" on the proposed deal. The regulator will seek responses before deciding whether to launch a full investigation of the deal.


A statement from Alliance quotes, “We are working with our partners at Sangers to understand the implications of this announcement, but in the meantime it is business as usual for us. Customers will see no impact and there will be no disruption to our normal service or deliveries.”


The Chairman of UDG Healthcare, Peter Gray, refers to the move as the ‘culmination of 15 years of strategic development by the group.’


He says, “It gives us the resources to continue building our higher margin, higher growth divisions, while placing our legacy United Drug Supply Chain Services business in the ownership of a global leader who will bring new opportunities and strengths to that business, its staff and its customers, to whom we extend our thanks for their long standing loyalty,” he said.


UDG Healthcare also stated that the capital generated by the sale, which


reportedly will be approximately


€407.5 million, will be used to reduce company debt, as well as offer “firepower” to UDG Healthcare’s business-expansion strategy. It is anticipated that the purchase will be formally finalised during the first months of 2016.


The announcement came with that of the retirement of UDG Healthcare CEO Liam Fitzgerald, who will be succeeded by Brendan McAtamney, the firm’s Chief Operating Officer since 2013.


“It has been my privilege to lead this company for 15 exciting years,” Fitzgerald stated, “and I believe now is the right time for new leadership to take the company forward. Since 2000 we have been on a journey to transform the group and move into new higher-growth outsourced pharmaceutical service areas and geographies. This announcement marks the completion of that transformation, albeit subject to shareholder approval. It’s a good time to pass on the baton to Brendan, and to move to a different phase in my career.” n


Killian Johnston, UCA President told us, “The McKesson purchase of United Drug Sangers will herald a new chapter for wholesaling in Northern Ireland. Whilst the deal won’t be finalised until next Spring, there will undoubtedly be more changes in the sector over the next few years. UCA will continue to work with all wholesalers and suppliers to community pharmacy in support of our members and the patients they serve.”


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