With many biologic drugs treating diseases of old age like cancer and arthritis, whose incidence is on the rise in Europe and the US, the use of biologics is set to increase. This to the extent that the sector is projected to be responsible for driving growth of the pharmaceutical market as a whole through 2012.

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Ideally drug supply should be a simple and transparent chain that connects the manufacturer and patient in as few steps as possible. However, in practice it can be a highly circuitous one that includes several intermediaries before reaching a pharmacy. Notwithstanding the possibility that drug integrity can be compromised in transit, complex supply chains risk counterfeit drug entry.

Driven in great part by the lost revenues such arbitrage brings, manufacturers have implemented several strategies to tighten their grip on the drug supply chain, with direct to pharmacy distribution schemes implemented in the UK being one of the most recent. However, the legitimacy of such action is often unclear, and a recent European Commission recommendation spells bad news for manufacturers seeking greater supply chain control, according to a new report.
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