Quantum Pharmaceutical

Quantum Pharmaceutical is a manufacturer and supplier of unlicensed medicines and Special Obtain products based in Burnopfield, County Durham.

History

Quantum was formed in 2004 and began trading with a small team of pharmacists and technicians at Tyne Metropolitan College on North Tyneside. It focused on selling special supplies to retail and wholesale pharmacy. In 2006 the company expanded and moved to Burnopfield in County Durham.

In 2011, Quantum Pharmaceutical acquired Total Medication Management Services Ltd, a distributor of medication in Biodose to various sectors.

In 2012 the firm acquired UL Medicines, a supplier of unlicensed pharmaceutical imports and batch made specials to hospitals. In that year the company also bought a stake in Protomed Ltd, the developer of Biodose, which is a monitored dosage system for patients in care homes and in care at home.

In 2014 the Quantum successfully joined the London Stock Market. It raised £106.1 million (before expenses) by placing 106.1 million vendor and new ordinary shares with investors at a placing price of 100 pence per ordinary share (the “Placing”). Quantum’s market capitalisation on admission, based on the placing price, is approximately £125 million. The net proceeds of the Placing will be used by the Group to repay a proportion of the debt within the business; enable it to acquire the remaining shares in Colonis Pharma Limited, the specialist pharmaceutical product development business, that it does not already own; and help accelerate the execution of the Group’s strategy. Admission will provide Quantum with increased reputation and profile, the ability to incentivise key employees and provide access to the capital markets for further equity funding in the future, should it be required.[1]

Products and Services

  • Specials: Non-licensed medicines manufactured or procured to suit the needs of individual patients, including:
    • alternative delivery mechanisms
    • non-standard dosages
    • unusual formulations
    • preservative / additive free formulations
    • overseas licensed pharmaceuticals
    • discontinued licensed products
    • medium / long term unavailable products
  • Special Obtains
  • Aseptic products
  • Biodose: a company-proprietary dosage management system

Controversy

In June 2013 the Daily Telegraph infiltrated reporters into the annual Pharmacy Congress to investigate malpractice in the market for Specials.[2] These products are generally individually priced. It was alleged that the company was prepared to offer backhanders in various ways. In particular it was alleged that the company could supply generic drugs free of charge in return for the right to supply a chain of pharmacies with special drugs.

In December 2013 it was fined more than £380,000 by the Office of Fair Trading over a cartel arrangement in which it carved up some of a multimillion-pound market in prescription drugs for care homes with Lloyds Pharmacy.[3]

From the article in references

Leo McDermott, its [Quantums] business development general manager, said: “We’ll charge you 150 per cent [of the cost of the drug]. Your 50 per cent stays in the Royal Bank of Quantum until you see fit to claim it back.” Mr McDermott also suggested that his company could supply generic drugs free of charge in return for the right to supply the chain of pharmacies with special drugs. Reporting a conversation he said had taken place with a high street chemist, he said: “I said 'you’ve got an account with [generic drug manufacturer], why don’t I just buy two and a half grand’s worth of generics from them, we’ll get it delivered into Quantum and then delivered [to you]’. So we’re not, no one’s breaking the law. We’re not laundering money or anything,” said Mr McDermott. Alternatively, he suggested simply invoicing Quantum at regular intervals, with around £10,000 a month being paid to the pharmacy chain for its business. “Or you can write us an invoice for £10,000 … simple as that. And between two large companies that’s completely legal. Quantum have had the best lawyers in the world on this. It’s completely legal. And little Mr Patel on the high street [thought to be a reference to chemists] they like to duck and dive and get the money back in different ways but a large company like you guys, you, you invoice me once a quarter for £40,000. Dead easy, dead easy,” he said.

References

  1. ↑ AIM Admission"Quantum Pharma Plc – Welcome to AIM" Archived December 11, 2014, at the Wayback Machine.
  2. ↑ "Pharmaceutical scandal: 'You pay us £300. However, your invoice will say £600. So £300 stays with you.'". Daily Telegraph. 20 June 2013. Retrieved 13 December 2013.
  3. ↑ "Drug firm fined for care homes 'cartel'". Health Service Journal. 13 December 2013. Retrieved 13 December 2013.


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