IVAX follows GSK lead on revised discount terms
Drug manufacturer IVAX has followed GlaxoSmithKline and revised its discount terms for community pharmacies. In a statement, IVAX Pharmaceuticals
UK said the decision was taken reluctantly but “the new market
dynamics imposed on us all” by GSK’s decision left it with
little option.
IVAX removed the discount from three of its respiratory brands — Qvar,
Airomir and EasiBreathe on 1 April. These are in direct competition with
some GSK products which also had their discount removed from 1 April.
But IVAX said that to help compensate pharmacists for any loss of income
it was introducing a price cut of up to 48 per cent on other drugs in
its respiratory portfolio.
The announcement has alarmed some pharmacist leaders who fear the removal
of discounts could affect the funding of the new community pharmacy contracts,
which takes discounts into account.
However, the Pharmaceutical Services Negotiating Committee has reassured
pharmacists that they will not be out of pocket following the decisions
by GSK and IVAX.
Mike Dent: pharmacist should not be out of pocket |
Head of finance at the PSNC Mike Dent said: “The
Government has guaranteed the £1.766bn for the new
contract. That
is the key message we would like to get across and that includes £500m
of guaranteed buying profit.” He confirmed that the Government
has promised to make up any shortfall in funding created by the removal
of drug discounts
and added: “But we are still deciding about the mechanism.”
Commenting on the IVAX announcement Frank Owens, chairman of the Scottish
Pharmaceutical General Council, said: “The GSK decision was completely
unexpected but having said that I think the IVAX announcement was inevitable.
Pharmacists are going to end up the innocent victims — caught in
the middle of an escalating conflict between drug manufacturers.”
The SPGC standing committee has asked GSK to reconsider its decision
but so far has had no response.
Mr Owens said: “If they continue to go down this road, health administrations
and pharmacy negotiators will have to direct their attention away from
implementing the new contract to reimbursement issues.”
John D’Arcy, chief executive of the National Pharmaceutical Association,
said: “Both companies are riding on the back of an agreement to
keep money in the system. That is a pretty major assumption and only
time will tell whether the Government will bail people out or that the
money will still stay in the system. The problem will come if everybody
takes discounts out. Then where will that money come from?” |
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