Pharmacy Daily | Brace for medicines price increases

PHARMACY owners are being warned to prepare themselves for price increases stemming from the Federal Government's five-year deals with Medicines Australia and the Generic and Biosimilar Medicines Association (GBMA).

In a post on LinkedIn, Pharmacy Guild of Australia Tasmanian Branch Director, Monique Mackrill, said the agreements, which were designed to reduce global and local supply chain risk, and tackle Pharmaceutical Benefits Scheme (PBS) listed medicine shortages, will result in increases to ex-manufacturer prices.

Under the deals, sponsors of medication that receive a price increase will be required to stock a minimum of six month's supply in the country to mitigate against future shortages.

"From 01 Oct, one component of these measures will directly increase the price of some 900 low-cost products across 200 PBS-listed medicines with an ex-manufacturer price currently below $4," she said.

"These increases will flow through the supply chain to community pharmacy as an increase in cost price, increasing the maximum general patient charge for most low-priced medicines."

While the deal will prevent discounting on ex-manufacturer prices on medications priced under $4, Chemist Warehouse Director, Mario Tascone, has said the group planned to maintain current pricing levels (PD 18 Jul).

"Despite these significant changes to the cost prices of these molecules, Chemist Warehouse will hold off any price rise to its patients," he said.

"Permanently and artificially raising the wholesale price of prescription medicines (which will flow directly to the bottom line of drug companies P&L) seems like an odd thing to do in times where the cost of living is already rising out of control.

"Previous stock shortages were the result of a once in a lifetime pandemic.

"[I'm] not sure a significant and permanent raising of prices is necessary."