- Drug shortages affect patients
- Payment dispute impacts medications
- Rising supply issues, tax
Industry leaders warn of potential difficulties for patients in accessing hormone replacement therapy, contraceptives, and heart medications due to unprecedented drug shortages.
Payment Dispute Impact
According to the British Generic Manufacturers Association (BGMA), a dispute over payments could impact a range of common medications.
Rising Supply Issues
The trade association, representing manufacturers and suppliers, reports that supply issues affect 111 medications, including antibiotics and epilepsy drugs.
This marks an all-time high, more than double the number of medications facing shortages at the beginning of the previous year.
Tax Implications
The BGMA attributes the stagnant tax to the NHS medications levy, arguing that it discourages pharmaceutical companies from supplying medicines to the United Kingdom. In contrast, they are increasingly depleting their limited stock externally, often leaving chemists searching for alternatives.
In an effort to prevent overcharging the NHS, drug manufacturers are subject to an annual 2% tax on the health service’s expenditure on branded drugs.
As stipulated in the Voluntary Scheme for Branded Medicines Pricing and Access (VPAS) agreement, the tax payments by manufacturers depend on the medicines bill issued by the NHS.
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The rate was 5.1% two years ago, but it has risen to 26.5% this year, according to the BGMA. This has made the United Kingdom less attractive to businesses.
Mark Samuels, the CEO, stated, “Supply issues for generic medicines are increasing, and patients are regrettably being impacted, as they account for four out of every five NHS prescriptions.”
“This is not about operating at a loss; rather, we are incurring losses due to VPAS.”
According to Dr. Leyla Hannbeck, the leader of the Association of Independent Multiple Pharmacies, community pharmacists have identified a shortage of one in ten medications.
She stated, “This has escalated to the point of crisis proportions and is affecting the entire sector.”
“They are required to spend countless hours locating medications for patients.” This is in addition to the challenges of operating a pharmacy in the current economic downturn. Where severe funding shortages have forced many establishments to close permanently.
HRT medication shortages have been a concern for some time, as highlighted by the Mail’s Fix the HRT Crisis campaign.
A spokesperson for the Department of Health and Social Care stated, “We have seen no convincing evidence that higher payment percentages cause supply issues,” given the available countermeasures.
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