Page 4 - P4304.1-V102_PS Magazine - Oct 24 (PRINT)

GENERICS…

PRICING…

AND CONCESSIONS

By Simon Coles.

The last couple of years have seen a lot of ups and downs
in the generic market, with pricing and availability being
forefront of most dispensing practices minds. One of the
areas that cause dispensing practices confusion however
is that of a price concession. So what is a concession…and
should PSUK members worry about them?

Caroline Pond has touched on these on page 18 and looked at the
impact they can have on a dispensary – but I thought we could talk
about this in more detail to help with understanding of the impact
these can have on the dispensary.
The first place to start would be to understand the difference
between branded purchasing and generic purchasing….and why we
don’t hear the term ‘concessions’ associated with branded purchases.

Brands vs Generics

Unlike brands, generics pricing fluctuates month by month, and
pricing is dependent on what is going on in the market in regard
to supply and demand. Generics are much more of a commodity
market when compared to brands, with multiple suppliers providing a
generic to meet the market demands
For a brand however, there is only one supplier of the product. Pricing
is much more stable with very limited – if any - price fluctuations.
The price and Drug Tariff is set and typically remains at that level.
Stock shortages don’t impact pricing as there are no other players in
the marketplace to step in if there are any issues supplying demand.
In short, when a brand is unavailable there is no alternative.

4 4 P S M a g a z i n e | G e n e ri c s … P ri c i n g … a n d B u y d i r e c t o n l i n e a t P S U K . co . u k
PS Magazine | MDS Terms Information Concessions
Buy direct online at PSUK.co.uk

10/09/2024 17:01:58
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