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Government Responds to OFT Medicines Distribution Study
In December 2007, the OFT published its market study into the distribution of medicines in the UK. The OFT considered the impact on the sector of Pfizer Limited's exclusive DTP scheme using only UniChem, and the likely impact of other manufacturers introducing DTP schemes and/or reducing the number of distributors they use.
The OFT found that there is a significant risk that such arrangements will result in higher costs to the NHS potentially running into hundreds of millions of pounds. The OFT also found that such schemes could affect services to pharmacies and patients through, for example, longer waiting times to receive medicines.
The Government has recently published it's response to the OFT study.
The Government agreed with the OFT that the impact on NHS costs from such schemes could be addressed through the current renegotiation of the Pharmaceutical Price Regulation Scheme (PPRS).
On the impact on services, the Government was unconvinced of the need to bring forward legislation to clarify service standards at this stage, but have said they will keep this matter under review and may consider taking action at a later date in the event that this becomes necessary.
Click on the link below to view the response in full:
Government Response to OFT Medicines Distribution Study
PSNC Comment
Limiting contractors' choice of wholesaler, reduces competition amongst wholesalers on service levels. PSNC is continuing to receive reports of supply issues linked to changes in manufacturers' distribution arrangements, particularly Pfizer's single channel distribution model.
We would encourage pharmacy contractors to continue to report problems that impact on patient care and we will ensure this is fed in to the Department of Health to support their ongoing monitoring work.
More information on recent changes to manufacturers' distribution arrangements can be found in the Funding & Drug Tariff section of this site.
Posted 14 May 2008