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3 wholesalers servicing 4,000 pharmacies go into administration

Three wholesalers jointly providing pharmaceutical products to 4,000 pharmacies in the UK have “ceased to trade with immediate effect”, the appointed administrators have announced.

Doncaster Pharmaceuticals Group Limited, Testerworld Limited, and Eclipse Generics Limited appointed American consulting firm Kroll on Monday (May 9) to oversee the process of administration, Kroll wrote in a statement to C+D today (May 12).

Headquartered in Doncaster and Gosforth, the companies “today” serve about 4,000 pharmacies and operate from 14 UK locations, with a “turnover of around £300 million”, Kroll wrote.

The three companies trade “under the Doncaster Pharmaceuticals, DE Group, Crosspharma and Eclipse brands” and are part of the Converse Pharma Group.

“The joint administrators are working with the relevant authorities to provide support to those employees affected by today’s announcements,” the spokesperson said.


“Small trade sales” still a possibility


Kroll managing directors Philip Dakin, Michael Lennon, and Jimmy Saunders were appointed joint administrators of the affected companies.

“Pharmaceutical distributors and wholesalers form an important link between drug manufacturers and independent pharmacies and their end customers,” Mr Dakin explained.

As it is overseeing the administration of a “complex chain”, Kroll “will be working closely with the relevant regulators, the management team and the group’s secured lenders to mitigate the impact on the pharmaceutical supply chain”, Mr Dakin told C+D.

“On appointment, our immediate objective will be to conduct an orderly wind down of the trading operations,” he continued.

He noted, however, that “the possibility of some small trade sales of parts of the business has not been ruled out as [Kroll aims] to maximise the return for creditors”.

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