From Mr J. D. Jenkins, MRPharmS
SIR,—I recently attempted to buy from Martindale Pharmaceuticals 250ml of phenoxy-ethanol BP, an ingredient in a hand cream I prepare. I was quoted a price in excess of £180. Despite twice referring the company to an identical supply it made two years ago priced at £23.87, I was informed that the quoted price was correct and that the lower price would represent a loss to the company.
My scepticism that one of the pharmaceutical industry's most commonly used preservatives should suddenly command such a high price was soon justified when J. M. Loveridge Plc offered the same product for £9.80 + VAT.
David Jenkins Towednack, Cornwall
Mr MARTIN SAUNDERS (commercial director, Martindale Pharmaceuticals) replies: Martindale Pharmaceuticals is a
manufacturer of prescription pharmaceutical "specials" and as such we manufacture unlicenced medicines under the auspices of the appropriate manufacturing licences issued by the appropriate regulatory bodies. Occasionally, as a service to the pharmaceutical profession, we wholesale small quantities of raw material that we "pack down" from our own stock, should the material be in stock at the time. In saying this, it is necessary to point out that we are not a primary raw material manufacturer or supplier and neither do we market our services as such.
Due to the diversity of the products offered as part of our pharmaceutical specials service, we do not have a requirement to purchase large volumes of the raw materials used in production since they tend to be infrequently required. For this reason we do not enjoy the same economies of scale as a true raw material supplier and consequently, the cost of material for such small volumes is higher than if the same raw material were to be purchased in bulk.
Since your reader last purchased a small volume of phenoxyethanol BP from Martindale Pharmaceuticals two years ago, the cost of goods levied by our raw material supplier has increased very substantially. Taking into account this cost together with the other costs associated with financing the original small volume purchase, holding inventory, quality control testing including the preparation of a certificate of analysis, dispensing and servicing the order, the price quoted by Martindale Pharmaceuticals for this particular "pack down" was quite realistic.
With regard to the price offered by J. M. Loveridge Plc, I regret that I am unable to offer comment upon this. Without knowledge of its source and cost of material together with its other terms and conditions associated with the supply of raw materials to the pharmacy profession, it would be inappropriate for me to speculate upon the price that that company chose to charge your reader.