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PJ Online homeThe Pharmaceutical Journal
Vol 276 No 7399 p523
6 May 2006

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Discount change focuses attention on GSK trading scheme

Changes announced last week to the zero-discount scheme for NHS pharmacy reimbursement in England and Wales (PJ, 29 April, p495) have focused attention on GlaxoSmithKline's trading terms.

Although the changes are intended to be cost-neutral at a national level, individual pharmacies will lose out if they dispense high volumes of products on which no discount is available and which are not included in the new zero-discount scheme.

As a result, the Pharmaceutical Services Negotiating Committee has called on manufacturers of affected products to reinstate discounts for pharmacy contractors. A meeting between PSNC and GSK representatives is to be held shortly, at which GSK will be urged to reinstate discounts for pharmacy contractors.

Last year, because GSK discontinued discounts on certain products, IVAX removed discount from a number of its products that compete directly with GSK undiscounted products.

Generic supplier TEVA, which recently acquired IVAX, operates a similar scheme to GSK, but with all its products contributing to the discount available once a monthly spend threshold of £399 is passed.

A TEVA spokesman said that all IVAX products would soon be included in the TEVA discount scheme.

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