API reduces its discount pool
December 22, 2010
AUSTRALIAN Pharmaceutical
Industries is set to reduce its
discount pool available to
pharmacies by 25%.
According to API the move is
necessary to offset the direct impact
of the new cost cutting reforms to
the Pharmaceutical Benefits
Scheme, as well as Pfizer’s decision
to cease distributing its prescription
medications through wholesalers.
In backing up its position API has
said that it expects Pfizer’s decision
will cost the company between 10-
15% of its annual wholesale
revenues, whilst the PBS reforms
will cost the wholesale sector in
general around $220m between
now and 2015.
“API has moved swiftly to
communicate the financial impact
of these changes so that pharmacists
have as much time as possible to
manage any consequential
changes to their business,” a
statement from the company said.
API has said that it will “make
appropriate changes” to reduce
costs early in the new year.
“API remains confident that this
change, combined with other cost
saving measures, should facilitate
recovery in the short term of any
losses incurred as a result of
Pfizer’s decision and the PBS
reforms,” the company said.
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