Short-line Wholesalers.

[ziubzia]

Hi Everyone,

I've been skulking around the forum for a few weeks, so thought it was about time to join. I have a couple of questions. I must say I have no experience with pharmacy so please excuse my lack of knowledge.

i was wondering what is the purpose of a short-line wholesaler to a pharmacy, obviously if you are supplied buy one of the 'big boys' and they carry everything. I'm having a hard time seeing where the smaller wholesalers find their place in the market?

[johnep]

Short liners cut costs by carrying limited stocks but on those they do have, can usuallly offer better price.
johnep

[bobbin]

Hi Everyone,

I've been skulking around the forum for a few weeks, so thought it was about time to join. I have a couple of questions. I must say I have no experience with pharmacy so please excuse my lack of knowledge.

i was wondering what is the purpose of a short-line wholesaler to a pharmacy, obviously if you are supplied buy one of the 'big boys' and they carry everything. I'm having a hard time seeing where the smaller wholesalers find their place in the market?

Short-line wholesalers exist mainly to sell generics, some PIs and various other bits and pieces. Almost all generics can be obtained from short-line. Independent pharmacies use short-line to buy generics if the short-liner is offering a better price than their main wholesaler.

[ziubzia]

Thanks for the replies. How much discount does a wholesaler give a pharmacy off the drug tariff? I understand that generally the discount usually covers the clawback and doesn't generally leave much in the way of profits?

[DavidS]

I understand that generally the discount usually covers the clawback

It's the other way around, strangely enough. The clawback is set to cover the discounts.

How DID we get into this mess.

[bobbin]

Thanks for the replies. How much discount does a wholesaler give a pharmacy off the drug tariff? I understand that generally the discount usually covers the clawback and doesn't generally leave much in the way of profits?

The discount given depends on the product, and on the wholesaler (except for DTP products, Pfizer etc). Branded medicines are now mainly sold at discounts less than clawback, unfortunately. For example, Novartis prescription products are usually sold at 8% discount, which is clearly less than clawback unless the pharmacy is absolutely dead. Clawback % depends on the total value of scripts submitted to the PPA in the month, as show in the Drug Tariff. Busy pharmacies have higher clawbacks up to 11.5%.

Discounts on generics are generally higher than clawback, except for a few generics where there is very little competition eg. phenytoin 100mg tablets. Obviously, generics prices are more variable than the prices of branded goods - it depends how much you are willing to shop around. Most short-line wholesalers are willing to negotiate generics prices to some extent, especially if you are buying large quantities. They are therefore useful for bulk orders of common generics, but less convenient for daily ordering.

[hibernia]

How DID we get into this mess.

Do you really want to know?
Being completely divided and so busy competing with each other for every scrap of business that we didn't notice the real threats until it was too late, then being so docile as to just continue dispensing products where we make a loss, in case somebody else might get a share of the loss-making.

[LeftArm]

Also, Poor representation from the RPSGB and the PSNC.

[Web Ferret]

Also, Poor representation from the RPSGB and the PSNC.

Great minds think alike - dispensing doctors still get re-reimbursed for brands if they endorse against generic scripts - Handy when the drug tariff price is below cost or you can't obtain any stock at the drug tariff price

[johnep]

That explains why they love branded generics. Ashbourne spotted this first and the founding DD made millions.
johnep