Anger over Italy's Afm sale to Gehe

The news that German drug wholesaler Gehe is to acquire themunicipally-controlled pharmacies company Afm in Milan, Italy, in what is seen as the first main phase in the privatization of the country's pharmacies, has been denounced as a scandal by the Lombardy association of pharmacists, the ALTF. The association made an unsuccessful bid of 233 billion lire ($100.2 million) for Afm.

The Afm grouping, under the chairmanship of Gabriele Albertini, confirmed that it had sold 80% of its operations in Milan to Gehe for 251 billion lire, noting that the 20% balance will remain in the hands of the municipal authority. Afm Milano comprises 84 pharmacy outlets and two dispensaries and is by far the most important communal pharmacy group in Italy, with sales of 128.6 billion lire in 2000.

Meanwhile, the national pharmacy federation, Federfarma, has said it will appeal to the regional authorities against the Milan deal, arguing that it goes against the will of both government and parliament for a public-private partnership in the pharmacy sector. Under this policy, as seen by Federfarma, the Milan deal is illegitimate.