Johnson & Johnson has become the first manufacturer to restrict the distribution of OTC products to certain wholesalers, in a move that independent representatives warned could "further expose independents to the mercy" of the multiples.

Under the reduced wholesaler model, which began on January 1, Johnson & Johnson and McNeil products are being distributed by Alliance Healthcare, Celesio Group (AAH), Phoenix Healthcare and Sigma Pharmaceuticals. The model would "reduce complexity, increase efficiency and ensure optimal distribution", Johnson & Johnson said.

But the move could "destabilise competition" as manufacturers tried to control margins, said Avicenna chief executive Salim Jetha.

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	This would further expose independents to the mercy of larger chains, he told C+D. "McNeil has historically been a stronger supporter of pharmacy but others that follow may not share this ethic," he cautioned.

The deal would prevent contractors "cherry-picking" the best product prices, said Graham Phillips, owner of Manor Pharmacy Group (Wheathampstead) Ltd, Hertfordshire. It would be more restrictive but there may be other benefits, he added.  

All Johnson & Johnson's former pharmacy wholesalers were invited to evaluate how to improve efficiency before it selected its four distribution partners. "Pharmacists will always be at the centre of our business, but we need to balance the requirements of our customers with the realities of the market," said Johnson & Johnson head of pharmacy David Mitchell.

The arrangement comes six years after Pfizer launched its direct-to-pharmacy deal, met by hostility by both pharmacists and wholesalers but followed by a host of other restricted wholesaler deals from branded prescription medicines manufacturers.