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Solution to wholesalers' problem will work

MEDIA RELEASE

24 November 2008

Proposed solution to wholesalers' problem will work, says Guild.

The Pharmacy Guild of New Zealand ('the Guild') met with representatives of the DHBs, Pharmac, and the pharmacy wholesalers today to discuss issues affecting the viability of the wholesalers when the effect of new generics flows into the market in early 2009.

The Guild and the wholesalers supported in principle a proposal that will ensure that the net financial effect on pharmacy is neutral.

"The proposal will ensure that the net funding flowing into pharmacy and on to the wholesalers is the same, regardless of the arrival of new generics in early 2009" said Guild Chief Executive Annabel Young.

The proposal now needs to be accepted by the DHBs and by Pharmac.

"This appears to be a workable solution so long as all participants act in good faith."

"The DHBs, Pharmac and the Guild are all committed to the long term sustainability of their distribution chain for pharmaceuticals" said Ms Young.

The issue of the increased pressure on the distribution chain arising from increased volume and variety of drugs remains to be addressed in the review of the pharmacy contract due by April 2010.

ENDS

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