The pharmaceutical supply chain has historically delivered drugs efficiently and with flexibility, ensuring that patients receive their medicines in a timely manner. In recent years, this situation has changed as a result of a variety of factors. We recognise that this is an urgent matter and are actively seeking solutions. All the current problems need to be resolved, to ensure that pharmacists are in the position to give patients the reliable service they expect.
Medicine shortages
Our members have made us very aware of the unprecedented product shortages that pharmacies are facing. The weakness of the pound has made UK drug prices amongst the lowest in Europe, leading to a significant increase in parallel exports. This is a major contributor to the availability problems in the UK for a number of medicines.
This is happening whilst the supply chain is being squeezed at both ends - PPRS has reduced prices for manufacturers whilst Category M has pressurised pharmacies.
Quotas are being applied as a blunt instrument – and in many cases are delaying supply at a local level. Pharmacists are frequently telling us that both manufacturer and wholesaler imposed quotas prevent them from supplying a patient in a timely fashion. Variations in prescription volumes and local prescribing factors (such as changes to local formularies) confound manufacturers’ attempts to predict need accurately.
The NPA is encouraging pharmacies and all parts of the supply chain to act responsibly. We are strongly of the view that pharmacies and all other parties in the supply chain should observe law and ethics, with eyes fixed firmly on the needs of patients.
Structural issues
It is demonstrable that changes to the structure of medicines supply are less efficient than previous arrangements, increasing costs and administrative burden, and reducing flexibility and competition. Discounts that pharmacies receive from wholesalers and manufacturers have decreased, increasing costs for pharmacies and ultimately the tax payer. Restricted supply arrangements from the manufacturers have forced pharmacies to increase the number of wholesalers they deal with, increasing time spent on administration.
Whilst giving urgent attention to the current matter of shortages, we shouldn’t ignore the structural developments taking place in the supply chain which are storing up problems for the medium to long term. We won’t let them distract the NPA, but we can’t ignore them.
Summary of key NPA activities on the medicines supply chain:
- Surveyed members to generate data on the problems members are facing
- Met with eight of the leading pharmaceutical companies to highlight the problems members are encountering in obtaining stock of their products
- Highlighted the problems to the three main full-line wholesalers
- Participated in round-table talks with the Association of the British Pharmaceutical Industry, British Association of Pharmaceutical Wholesalers and PSNC
- Worked with the MHRA and RPSGB to produce a guide to the legal and ethical framework for pharmacists
- Worked with DH and a range of other stakeholders to produce a guide to the legal and ethical framework pertaining to all parties in the supply chain
- Opened discussions with the Office of Fair Trading on the structure of the supply chain
- Lobbied all parties in the supply chain on the need to resolve the structural issues
If you have any tips for managing problems locally, let us know and we can share them on the PSNC and NPA websites.
Contact for the NPA is Gareth Jones: g.jones@npa.co.uk
Click here to read information on Medicines supply
The pharmaceutical supply chain has historically delivered drugs efficiently and with flexibility, ensuring that patients receive their medicines in a timely manner. In recent years, this situation has changed as a result of a variety of factors.
It is demonstrable that changes to the structure of medicines supply are less efficient than previous arrangements, increasing costs and administrative burden, and reducing flexibility and competition. Discounts that pharmacies receive from wholesalers and manufacturers have decreased, increasing costs for pharmacies and ultimately the tax payer. Restricted supply arrangements from the manufacturers have forced pharmacies to increase the number of wholesalers they deal with, increasing time spent on administration. Pharmacists report that quotas and/or wholesalers have prevented them from ordering medicines needed for patients.
This is happening whilst the supply chain is being squeezed at both ends - PPRS has reduced prices for manufacturers whilst Category M has pressurised pharmacies.
Our members have made us very aware of the unprecedented product shortages that pharmacies are facing. The weakness of the pound has made UK drug prices amongst the lowest in Europe, leading to a significant increase in parallel exports. European Union free-trade agreements facilitate this trade of pharmaceuticals from markets where the price is low, to markets where the price is high. Suppliers in Europe seek to avoid paying the premium charged by manufacturers on products in countries such as Germany by sourcing the product from the UK. This is resulting in availability problems in the UK for a number of medicines.
We recognise that this is an urgent matter and are actively seeking solutions. This includes encouraging pharmacies to act responsibly, within the relevant legal and ethical frameworks.
All the current problems need to be resolved, to ensure that pharmacists are in the position to give patients the reliable and flexible service they expect.
