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Market Studies - Medicines Distribution

The OFT published its report on medicines distribution on 11 December 2007.

The report made the following recommendations to Government:

  •  that the NHS act to protect discounts obtained by pharmacies either:

    - by locking down the current standard level of discounts (12.5%) in the Pharmaceutical Price Regulation Scheme (PPRS)

    - essentially 12.5% would be taken off the list price rather than the actual ex-manufacturer price; or by setting a minimum level of discount to be maintained.

  • that Government should agree with the pharmaceutical industry (possibly as part of PPRS) a minimum level of service to be provided to pharmacists.

Government agrees that the recommendations made by OFT should be discussed as part of the current PPRS negotiations. However, it is not convinced of the need to bring forward legislation to clarify service standards at this stage, but will keep this matter under review.

The final Government response on PPRS, which was published in June 2009 addresses an outstanding point from the Government response to the OFT’s market study report “Medicines Distribution”, which was published on 2 May 2008. This concerned the potential for increased costs in the prices of medicines resulting from a change in distribution methods being passed on to the NHS

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