Recent Big Pharma merger agreements including Pfizer and Wyeth's pending union and Merck & Co.'s planned acquisition of Schering-Plough are giving companies more leverage in their fee-for-service negotiations with distributors, a supply chain expert said. "In general, the consolidation of manufacturers is bad for wholesalers because it's giving the drug makers much more leverage in their fee-for-service negotiations," said Pembroke Consulting President and NAW Institute for Distribution Excellence Fellow Adam J. Fein, Ph.D.

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