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Pfizer says "No Thanks" to Fee for Service Negotiations with Wholesalers

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Pfizer, the world's largest pharmaceutical company, recently announced that they would not negotiate with wholesalers such as Cardinal Health Inc. to pay fees for
distributing medicines. According to Pfizer's filing with the SEC ``Wholesalers purchase and resell products for their own account and not as a service to Pfizer as a manufacturer"

This approach makes obvious business sense for a company such as Pfizer. Why would Pfizer want to pay fees to a wholesaler to distribute their product, which the wholesaler would mark up to make an even greater profit? It is a quick and easy way for wholesalers to increase their profits that ultimately ends up costing the consumer by raising the costs of medications.

This move by Pfizer also shows the consumers that the pharmaceutical companies are not the only ones to blame about the high cost of medicines in the US. Often, there are middlemen involved that drive up the costs, not to mention the final line sellers, pharmacies. Recent studies have shown that medications can cost upwards of 300% more from pharmacy to pharmacy within an individual city.