MEMORANDUM BY THE PHARMACEUTICAL SERVICES
NEGOTIATING COMMITTEE
THE AVAILABILITY OF GENERIC DRUGS TO THE
NHS (GD8)
1. STATUS OF
PHARMACEUTICAL SERVICES
NEGOTIATING COMMITTEE
1.1 The Pharmaceutical Services Negotiating
Committee (PSNC) is the body referred to in paragraph 8(4) of
Schedule 2 of the National Health Service (Pharmaceutical Services)
Regulations 1992 as amended as:
"the organisation . . . representative
of the general body of chemists"
The Committee represents all pharmacy contractors
(retail chemists) providing general NHS pharmaceutical services
in England and Wales. Its composition includes both sole proprietors
and company chemists.
1.2 The PSNC negotiates with the Government
the terms and conditions under which pharmacy contractors in England
and Wales provide NHS Pharmaceutical Services.
2. REASONS FOR
THE SHORTAGES
OF GENERIC
MEDICINES
2.1 In the view of the PSNC, the principal
reasons for the current shortage of some generic medicines are:
2.1.1 The closure, by the MCA of Regent
Laboratories which had, hitherto, been the primary source of appoximately
10 per cent of the generic medicines supplied through the NHS
by pharmacy contractors.
2.1.2 The failure to agree transitional
arrangements for the movement from large packs to small packs
related to patient specific requirements.
2.1.3 The movement of production out of
the UK by major suppliers APS and Norton.
3. RESPONSIBILITY
OF PHARMACY
CONTRACTORS
3.1 The NHS regulations require community
pharmacies to dispense NHS prescriptions "with reasonable
promptness". Failure to do so may result in action being
taken against pharmacy contractors. This statutory duty places
on pharmacy contractors the need to ensure that, as far as possible,
pharmacies are always stocked with medicines that may be required
under the NHS.
3.2 The current arrangements which operate
within the NHS for pricing prescriptions mean that community pharmacists
are reimbursed, overall, at the net acquisition cost of the medicines
supplied. Generic medicines are generally reimbursed at a weighted
average price (taking account of any discount received by pharmacy
contractors from wholesalers or manufacturers).
3.3 If, due to a shortage, pharmacies have
to source generic medicines from different suppliers or supply
a branded medicine which is, invariably, more expensive, the product
is placed on a special (Category D) list where the pharmacist
may endorse the prescription with the name of the manufacturer
or wholesaler from whom the medicine has been obtained. Products
are only included on this list when a shortage has been established
and agreed between the PSNC and the Department. In the absence
of any endorsement by the pharmacist in such cases the price used
for pricing of the prescription, is the price listed within the
Drug Tariff.
4. PRIMARY RESPONSIBILITY
OF COMMUNITY
PHARMACISTS
4.1 The primary responsibility of community
pharmacists is to ensure continuity of supply to patients. When
there is a shortage, the community pharmacist has a duty to try
to obtain sufficient quantities to maintain the service to patients
irrespective of the overall effect that this might have on the
general supply position.
4.2 We have no evidence to suggest that
in the current situation pharmacy contractors are doing anything
other than to attempt to meet the demand placed on them by the
NHS.
| 
