United Drug chairman warns pharmacies on wholesale alliance

Pharmaceutical wholesaler United Drug has made a strong start to 2004, shareholders heard at the company's annual general meeting.

Profits in the first quarter were well ahead of this time last year, with chairman Martin Rafferty predicting another record year.

Rafferty also went on to highlight what he termed "a conflict of interest" between wholesalers who buy pharmacies and the pharmacies themselves.

He warned those pharmacies that a wholesaler with retail outlets was effectively becoming their competitor and that they were in danger of undermining their future with such an alliance.

Rafferty claimed that United Drug was now the only wholesaler not buying pharmacies, and was therefore the only wholesaler that could give impartial advice and service to independent pharmacists keen to expand and grow their business.

"Both of our main competitors now own a significant number of shops throughout the country, which are competing with their other independent pharmacy customers.

"The conflicts of interest are clear and have resulted in a strong growth in our market share. Many independent pharmacists have moved to United Drug in the last three years. More will surely follow," he added.

United Drug traded up 5c to €2.60 on the ISEQ earlier this morning.