Commenting on the move, John Cochrane, MD of the Munro Group said “This is the final step in our plan to reposition the Munro Group firmly as a short line wholesaler focussed on PI and generic product. To put our decision into perspective it is important to understand that the pharmacy sector, both retail and wholesale, is undergoing unprecedented amounts of change and in the latter part of 2007, despite growing our retail and wholesale businesses to record levels of turnover, the directors reluctantly accepted that the fundamentals of the industry were moving against the independent operators and regional wholesalers. In these circumstances we felt obliged to take steps to safeguard the interests of customers and staff alike.

Following the sale of our main line wholesale operations, the Munro Group will stay in pharmaceutical wholesale and trade as Strathclyde Pharmaceuticals Limited. Both Donald Munro and myself remain in the business and committed to keeping the Munro Group active in the wholesale of PI&#x92s and generics. 

Commenting on behalf of Phoenix Healthcare, CEO Paul Smith stated “the Directors of the Munro Group recognise that the trend for direct to pharmacy supply will undermine their main line business and therefore affect their ability to satisfy their customers&#x92 needs.  Munro has had a long association with many of their customers and do not want to be in the position of letting them down. The agreement has been reached following an intense period of negotiations, which took place after the disposal of the Munro retail stores.  Whilst both parties have worked extremely hard to reach this agreement in a short period of time, the ongoing requirements of the customers and staff have been paramount within the negotiations. The deal will safeguards jobs and ensures that Munro customers will see no interruption in service. The same people will take calls, pick orders and deliver to pharmacies; it is very much business as usual for the foreseeable future and any changes will be notified to all parties well in advance.

Phoenix Healthcare Distribution has agreed that from 1st April 2008 it will take over the full operational management control for Munro Wholesale Medical Supplies Limited, and will continue to offer the excellent standard of service that their customers already enjoy.  The depots in Glasgow, Aberdeen and Belfast will continue to operate as normal with future plans for the integration process being considered in due course.”