German pharmaceutical and biotechnology company Bayer has announced plans to outsource its distribution and customer support operations for pharmaceutical products as well as marketing and sales of over-the-counter medicines to a third party in what will affect some of its employees.

The giant pharmaceutical says the move, which takes effect in May, is aimed at ‘simplifying its value chain’ and reducing the lead time between production and distribution.

The operations will now be handled by an undisclosed “large distributor” with a wide network in the affected markets, Bayer South East Africa and West Central Africa said on Tuesday.

A spokesperson for the firm described the move as a “remodelling” of its distribution operations in East and West Africa where it currently deals with many distributors.

The adoption of the distributor-led model largely mirrors the strategy implemented by GlaxoSmithKline (GSK) in late 2022.

“We are calling this initiative ‘Smart Serve’, as it is intended to help reach and serve more people in Africa in a more sustainable manner. We shall be leveraging the expertise and networks of a third-party distributor to ensure sustained availability and access of our products and solutions,” Jorge Levinson, Cluster Lead for the Pharmaceuticals Division in South East and West Central Africa, said in a statement.

“Through this approach, we strongly believe that Bayer will be better positioned to accelerate access to our health solutions, especially in the family planning, cardiovascular, ophthalmology, self care as well as OTC [over the counter] therapeutic areas.”

Bayer’s pharmaceutical prescription products, largely for women's healthcare, anti-infectives -- medicines that prevent or treat infections -- and cardiology drugs, are mainly manufactured at its plant in South Africa. The firm also markets and sells over-the-counter medications, nutritional supplements, dermatologic and other self-care products.

The third-party distributor will take over the transportation, local warehousing, distribution and customer support for the German.

“While the opportunities and possibilities to serve our customers more sustainably are exciting, we fully recognise the potential impact this will have on the current model, including our people,” said Michael Meewes, the cluster lead for the Consumer Health in South East West Africa.

“We do not underestimate the possible disruption, and we aim to minimise its effects where possible, remaining committed to always treat everyone with respect, dignity, and care.”