| Pharmacy discounts on generic medicines in France: is there room for further efficiency savings? | |
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MedLine Citation:
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PMID: 17764613 Owner: NLM Status: MEDLINE |
Abstract/OtherAbstract:
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BACKGROUND: In France control of pharmaceutical expenditure has been a policy priority for many years and generic policies have featured prominently on the policy agenda. Measures including reference pricing, generic substitution and international non-proprietary name (INN) prescribing have been introduced in recent years. Generic manufacturers and wholesalers may offer discounts, rebates or promotions to pharmacies in order to gain an edge over their competitors, but their true extent is unknown. OBJECTIVES: To identify the amplitude of discounts on generic medicines, and whether wholesalers or generic manufacturers offer these beyond officially negotiated margins and allowable discounts, by conducting a pilot study. DATA AND METHODS: Data on net prices were acquired for all available presentations of 11 generic molecules selected across different therapeutic categories included in the 40 most selling generic products in 2005. Data were obtained via a questionnaire survey followed by interview with selected pharmacies (n = 4) and whole-salers (n = 2). Pharmacies and wholesalers participated in this study subject to confidentiality and anonymity. RESULTS: Pharmacies usually prefer to buy generic products directly from manufacturers rather than from wholesalers in order to avoid paying additional margins imposed by wholesalers. Discounts are mostly price-related and generally vary from 20 to 70% off the wholesaler selling price (WSP), on top of the officially allowed 10.74%. Discounts on the ex-factory price (EFP) are much lower, typically around 7.5%. Discounts are prohibited for branded products, beyond the officially allowed ceiling of 2.5%. While horizontal integration among pharmacies is disallowed, pharmacies may form purchasing groups allowing them to realise greater discounts from suppliers. CONCLUSIONS: Overall, the evidence suggests that discounts occur in France beyond what may be allowable and their extent can be significant. If general discount levels for generic medicines are as high as this pilot study suggests, then this may imply that health insurance in France may be overpaying for commodity generic medicines. |
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Authors:
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Panos Kanavos; David Taylor |
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Publication Detail:
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Type: Journal Article; Research Support, Non-U.S. Gov't |
Journal Detail:
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Title: Current medical research and opinion Volume: 23 ISSN: 1473-4877 ISO Abbreviation: Curr Med Res Opin Publication Date: 2007 Oct |
Date Detail:
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Created Date: 2007-10-25 Completed Date: 2007-12-14 Revised Date: - |
Medline Journal Info:
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Nlm Unique ID: 0351014 Medline TA: Curr Med Res Opin Country: England |
Other Details:
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Languages: eng Pagination: 2467-76 Citation Subset: IM |
Affiliation:
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LSE Health, London School of Economics and Political Science, UK. p.g.kanavos@lse.ac.uk |
Export Citation:
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| MeSH Terms | |
Descriptor/Qualifier:
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Cost Savings* Drugs, Generic / economics* France Pharmacies / economics* Pilot Projects |
| Chemical | |
Reg. No./Substance:
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0/Drugs, Generic |
From MEDLINE®/PubMed®, a database of the U.S. National Library of Medicine
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