Panadol Osteo price hike
January 4, 2016
GLAXOSMITHKLINE has been
slammed by Federal Health
Minister Sussan Ley, following
the pharmaceutical giant’s
announcement that it would bump
up its prices for Panadol Osteo by
50 percent beginning January 01.
Blaming the price hike on the
changes to the Pharmaceutical
Benefits Scheme (PBS), a
spokesman at GlaxoSmithKline
told wholesalers in a letter that
“in moving to an over-the-counter
business model, GlaxoSmithKline is
no longer able to sustain its current
pricing of Panadol Osteo”.
The Pharmacy Guild of Australia,
who has widely criticised the policy
change since negotiations first
began, is using the pricing surge to
fan the flames stating that “many
people with chronic, debilitating,
osteoarthritis will pay significantly
more for their treatment.
“For example, Concession Card
holders who normally reach the
Safety Net in August previously
paid $60.16 a year for their Panadol
Osteo under the PBS will now pay
an estimated $180 a year, tripling
their annual out-of-pocket costs,”
the group commented.
“As Panadol Osteo is de-listed
from the PBS, it also no longer
counts towards the Safety Net,
meaning that Concessional Card
holders will have to purchase more
PBS medicines before reaching the
Safety Net, further delaying their
access to free medicines”.
Executive director of the
Pharmacy Guild of Australia, David
Quilty, went on-the-record on 6PR’s
Mornings program to say that the
decision to de-list over-the-counter
medications was formed on the
basis that “these medicines would
continue to be available to patients
at comparable prices to what they
have to pay under the PBS”.
“And what’s concerning us is,
particularly with Panadol Osteo, it’s
pretty clear now that’s not going to
be the case,” said Quilty.
Minister Ley has attacked the
manufacturer’s reasoning, calling
for the Australian Competition
and Consumer Commission (ACCC)
to investigate the price increase,
stating on her website that “there
are no obvious market changes that
justify such a substantial increase”.
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