Page 5 - P4304.1-V102_PS Magazine - Oct 24 (PRINT)

Pricing and concessions

So, generics are a commodity, and there are multiple suppliers supplying
the market with same molecule – all competing for the business in the
marketplace. We also know that pricing will fluctuate month on month
depending on a variety of things such as supply and demand. Each
month the NHS prescription services will monitor this and ensure the
drug tariff is adjusted monthly to take into account the changes in
market pricing. In general – the dispensary will always make a good
margin on generic purchases – unlike brands.

The last 24 months have seen both the highs and the lows of generic
pricing, and this can be seen in the average reimbursement paid on
generics in the table below with generic pricing now at the time of writing
at the lowest point it has been for past two years (£2.65 per item) with
the highest point in August last year (£3.38 per item). Good news for the
NHS and good news for your generic purchasing bills – but the drop in
pricing can sometimes have a knock-on effect and cause shortages or
increases in demand which in turn can create concessionary pricing.

Average Generic Reimbursement

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