Three of the largest pharmaceutical firms in the UK have collapsed into administration with the immediate loss of 1,000 jobs.
Testerworld, Doncaster Pharmaceuticals Group and Eclipse Generics are major suppliers of medicines with a turnover of £300million.
The companies are part of the Converse Pharma Group and operate in 14 locations across the UK, supplying 4,000 customers.
Administrators from Kroll were appointed to the business this week on Monday (May 9), reports Chronicle Live.
Philip Dakin, joint administrator at Kroll, said: “Pharmaceutical distributors and wholesalers form an important link between drug manufacturers and independent pharmacies and their end customers."
He continued: “It is a complex chain which means we 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.
“On appointment our immediate objective will be to conduct an orderly wind down of the trading operations.
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“The possibility of some small trade sales of parts of the business, has not been ruled out as we aim to maximise the return for creditors.”
Doncaster Pharmaceuticals and Eclipse Generics Limited, which are also part of Converse Pharma Group, have entered administration as well.
The collapse of Testerworld comes after the Medicines and Healthcare products Regulatory Agency (MHRA) suspended its operating licence due to “customer and supplier validation and control protocols”.
The sanction was partially lifted the following month. The firm mothballed its operation for around six weeks before restarting at about 95% of the pre-suspension trading.
Accounts for Testerworld to the end of March 2020 say: “Whilst the lifting of the partial suspension is not deemed a critical enabler to ensure a return to profitability of the business, it is essential that the business regains its full licence status.
“A roadmap towards achieving that objective has been submitted to the MHRA and the directors can confirm that progress is being made in line with agreed objectives and timelines included within the submission.”
At the time, directors at Testerworld said they had extended a lending facility with the firm’s bank, the Royal Bank of Scotland and Secure Trust.
A community pharmacy contractor who has done business with the wholesaler for over 20 years told Pharmacy Business: “I fear for the worst.
“I don’t think there will be enough supply of medicines to cope up with a surge at such a short notice.”
A spokesperson for the Department of Health said it was aware of the development and would continue to monitor it.
"No significant disruption to supplies is currently anticipated," he told the BBC.
