Pharmacy Magazine questions
13 June 2008
Attributed to Mark James
1 - What is your reaction to the proposed introduction of therapeutic tendering in Northern Ireland, and how will it affect your business and service to pharmacists there?
Like others AAH is concerned that the proposals will weaken not strengthen the generics supply chain in Northern Ireland.
Under current arrangements, choice and competition among suppliers and wholesalers drive high levels of efficiency and value for money. If you take these away, as the DHSSPS is proposing, then you risk prices eventually being driven up and potential shortages arising if those who win the tenders are unable, for whatever reason, to meet demand.
I think the more you consider the potential implications of therapeutic tendering the less attractive it becomes, particularly in comparison to the arrangements we have now.
It is unclear at this stage what the implications will be for wholesalers which serve pharmacies in Northern Ireland. That will depend upon the detail of the submitted tenders.
2 - Are pharmacists likely to see many more DTP distribution schemes, or has the market reached a natural level?
The wholesale sector has evolved over the years and undoubtedly will continue to evolve.
AAH is committed to working with suppliers to help them develop solutions which meet their particular distribution needs and retain high levels of service to those who dispense medicines.
Different suppliers have different needs and DTP is one of several potential models from which they can choose. Napp, Sanofi-aventis and Novartis have changed their distribution arrangements, but based their solutions upon the wholesale model.
3 - How would you like to see the PPRS reflect changes in the wholesaling model, as identified by the OFT report?
The current PPRS negotiations need to recognise the role and contribution of the wholesale/distribution element of the pharmaceutical supply chain and ensure it is adequately funded.
The UK has a very efficient supply chain which offers value for money combined with high levels of service. This is based upon choice and competition between wholesalers.
I would be concerned if one of the outcomes of the PPRS is a reduction in competition between wholesalers.
You can make the finances of the supply chain less complex - as the OFT proposed - but simpler does not equate to better. The competitive dynamics of current arrangements ensure that high levels of service are provided along with the best value possible for pharmacists, patients and the NHS.
It is important to note that recent criticism about value for money for medicines was about generic versus ethical prescribing. It was not about the efficiency and effectiveness of the supply chain.
4 - What are AAH’s latest service offerings and what’s planned for the future?
AAH is committed to building upon its many services and supports to its customers and we currently possess an extremely strong Healthwatch service that supports pharmacists on a range of screening supports from a smoking cessation programme to men’s health and lifestyle assessments.
We are committed to developing Healthwatch on an ongoing basis and a new and unique flu vaccine service is due imminently – this will see pharmacists administering advice, consultation and flu vaccinations.
In addition, we continue to provide financial support for refits and relocations, merchandising and category management support to aid retail operations and of course, IT solutions. The latest developments in our IT solutions offer web-based training for all pharmacy staff on eMAS and ultimately eAMS and eCMS.
