Discounts

[thadon]

Hi,
This might not be the best place to ask but I'll give it a go anyhow. I am composing a list of the level of discounts various manufacturers give on their products through different wholesalers. Has anyone got any literature or point me in the direction of where I can get some.

All help appriciated

[johnep]

This is highly confidential information which would be used by DOH to reduce payments to pharmacies as happened when discounts became known before. In those days some wholesalers would maintain agreed prices but give rebates according to purchase volume.
johnep

[bobbin]

This is highly confidential information which would be used by DOH to reduce payments to pharmacies as happened when discounts became known before

Discounts on branded medicines produced by most major manufacturers have been reduced very substantially in recent years and are now usually less than clawback. As a result, some branded medicines are now dispensed at a loss. In other cases, the dispensing fee partially makes up for the loss of money on the product itself.

The DoH is well aware that pharmacies are now receiving reduced discounts on most branded medicines. This information is not difficult for them to obtain. As of yet, they have chosen not to amend the discount deduction scale. They will have to amend it at some point however because it is becoming increasingly inappropriate. For example, Bayer products are available at discounts between 6 and 8%, but the clawback scale removes up to 11.5% from the pharmacy. The pharmacy is therefore paid less for the medicine than they paid the wholesaler for it.....and so the products are dispensed at a loss.

Bobbin

[bobbin]

Hi,
This might not be the best place to ask but I'll give it a go anyhow. I am composing a list of the level of discounts various manufacturers give on their products through different wholesalers. Has anyone got any literature or point me in the direction of where I can get some.

All help appriciated

I could help. But why are you producing this list? Are you a community pharmacist?

[Fleegle]

Careful now.

[bobbin]

This is highly confidential information which would be used by DOH to reduce payments to pharmacies as happened when discounts became known before. In those days some wholesalers would maintain agreed prices but give rebates according to purchase volume.
johnep

In the past, good discounts on branded meds were available. In general, this is no longer the case. In the absence of PIs, there is no incentive whatsoever for pharmaceutical companies and wholesalers to offer decent discounts on UK ethicals.

[hibernia]

In the past, good discounts on branded meds were available. In general, this is no longer the case. In the absence of PIs, there is no incentive whatsoever for pharmaceutical companies and wholesalers to offer decent discounts on UK ethicals.

Which is why they would love to see an end to the PI trade, by whatever means, hence the quotas, hence the whispering campaign that pharmacists are somehow making a fortune out of trading in medicines (even if they were, it is of course perfectly legal).

Ultimate aim is to get the EU, which was set up to allow free trade (remember it used to be called the COMMON market), to ban free trade.

[bobbin]

Which is why they would love to see an end to the PI trade, by whatever means, hence the quotas, hence the whispering campaign that pharmacists are somehow making a fortune out of trading in medicines (even if they were, it is of course perfectly legal).

Ultimate aim is to get the EU, which was set up to allow free trade (remember it used to be called the COMMON market), to ban free trade.

This is very true. Although parallel trade can sometimes cause problems, it does represent the only form of competition when a drug is still patent-protected. As a result, I am generally in favour of a limited amount of parallel trade.

[thadon]

Hi, the boss is looking me to do it. i have obtained most of what I need , mainly through manufacturers websites eg pfizer. Its a joke that around 8% discount is given and the clawback is 11 ish. What an unjust system

[bobbin]

Hi, the boss is looking me to do it. i have obtained most of what I need , mainly through manufacturers websites eg pfizer. Its a joke that around 8% discount is given and the clawback is 11 ish. What an unjust system

Unfortunately, for the large proportion of products which are now distributed via reduced wholesaler models (eg. Sanofi-Aventis), 7% is now the usual discount.