The Pharmaceutical Journal
Vol 268 No 7188 p311-320
9 March 2002

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Ending control of entry could cut prices, says ASDA

Medicine prices could fall by up to £420m a year if control of entry on new pharmacy dispensing contracts were to be removed, ASDA Stores told the Office of Fair Trading when it gave evidence to its inquiry on 6 March.

According to ASDA's figures, potential cuts of £270m in the prices of medicines are not being passed on to customers by other retailers following the ending of resale price maintenance. A further £150m is being spent annually on the purchase of pharmacies holding contracts.

ASDA believes that ending control of entry would see up to 10 per cent more pharmacies opened in a greater variety of locations. It bases this on its own expansion plans and an analysis of likely moves of competitors over the next five years. The company wants to see retailers meeting strict standards be allowed to open pharmacies in locations to suit their customers and improvements to the existing Essential Small Pharmacies Scheme.