Australia's price disclosure change to put even more pressure on pharmacies, says Pharmacy Guild

The Australian government last week announced plans that would save patient hundreds of dollars a year on the cost of prescription medicines as the government speeds up its clawback of the profits chemists make on generic drugs (The Pharma Letter August 2). However, the measure has upset pharmacists and major pharmaceutical companies whose profits will be reduced.

The decision announced by the federal government to further accelerate the price disclosure process for Pharmaceutical Benefit Scheme (PBS) medicines will make the already difficult economic environment for community pharmacy even more difficult, says the Pharmacy Guild of Australia.

The reduction in the price disclosure cycle from 18 months to 12 months will hasten the decline in pharmacy margins for dispensing Pharmaceutical Benefits Scheme medicines, and have a negative impact from October 2014 on the viability of Australia’s 5,240 community pharmacies.