PBS Reforms 2012
November 14, 2011
PBS reform has been a reality for
pharmacy since August 2008, but the
countdown to arguably the most
critical day in pharmacy history is now
less than 6 months away.
01 April 2012 will trigger the next
ongoing series of waves of PBS reform,
and independent pharmacy owners in
particular will need to
understand the impact on their business.
On this day the Government will
receive their guaranteed min 23%
average price reduction on highly
competitive off-patent products.
Though the average weighted
drop in April of 23% is guaranteed
we may see some molecules drop by
more than 50%.
These drops will cause other reactions
in the industry with generic
manufacturers adjusting discounts and
wholesalers having to reset their
pricing to reflect the loss in turnover.
On the same day, we will see the first
PBS listings of Atorvastatin (Lipitor),
which is currently the #1 molecule on
the PBS.
Though the patent expiry is not until
18 May 2012, Ranbaxy will be the first
of the generic companies to come to
market due to a 3 month exclusivity deal.
Though everyone is purely focused on
Atorvostatin there are an additional 30
other molecule patent expiries which
represent more value than Atorvastatin
The events above will have an impact
on dispensary revenue and
profitability in independent pharmacy.
What can you do?
The first thing to do is to research
the PBS changes by visiting pbs.gov.au
or looking for updates from the Guild;
and then develop a strategy to
maximise opportunities and mitigate
risks that PBS changes may bring.
Stock management for 01 April is
absolutely crucial, make sure you are
aware of the drugs that are due to
come off patent and ensure that you do
not order in bulk.
These changes can be complicated.
If you don’t have the time to get your
head around how it will impact your
business, find help; otherwise
email pbsreform@pharmacyalliance.net
and I’ll be happy to answer your
questions and let you know how
Pharmacy Alliance can support you.
This week’s
contributor is
Matt Marsh from Pharmacy
Alliance.
The above article was sent to subscribers in Pharmacy Daily's issue from 14 Nov 11To see the full newsletter, see the embedded issue below or CLICK HERE to download Pharmacy Daily from 14 Nov 11
