12-28-2011, 05:59 PM
0
I'm puzzled 
As I see it here, a branded drug is hits the market over here and gets 'approved' eventually to be used in the NHS. Depending on the 'success' in trails and the costs the drug becomes readily available. For example one cancer busting drug isn't readily available at the moment because it is so expensive and proves no benefit over drugs already in use.
Branded drugs bill to the NHS way higher than generic brands so future research can continue. After a ten year window often the branded drug recommend to the NHS a change in formula, and surprise surprise, a generic arrives within the same month. In that ten year window the branded drug has to claim its profits before the formula has to be made public to manufacturers, who can then choose to produce the drug themselves. The generic can often cost pennies rather than pounds.
Example: Tritace Capsules were given a formula improvement to a tablet. Same month the generic capsule arrive on the market Ramipril. Doctors were 'advised' by the company to use the tablet, which doctors dutifully did until a directive went out by the NHS the generic would only be supplied on the NHS.
In the shop we have a monthly index of all the drug prices. These are the prices the NHS are prepared to pay for each prescription.
If a script comes in for Ramipril with no other instructions, we supply capsules at a cost to the NHS of about £1.80 plus 90p dispensing fee. This is what the NHS pay us.
If a doctor insists on tablets he must write so, costing the NHS £12 plus 90p fees.
The NHS pricing authority will eventually write to the doctor to use capsule unless he can prove a need for tablet.
Worse for us, a manufacturer will and does create a market by limiting supplies, which pushes the generic price up so we the Pharmacy cannot afford to buy it, because we will not be reimbursed by the NHS. It does work the other too.
If we can obtain a drug at less than the NHS index price, then we keep the profit : Ramipril bought in a £1.10, profit of 70p plus 90p fee.
As I see it here, a branded drug is hits the market over here and gets 'approved' eventually to be used in the NHS. Depending on the 'success' in trails and the costs the drug becomes readily available. For example one cancer busting drug isn't readily available at the moment because it is so expensive and proves no benefit over drugs already in use.
Branded drugs bill to the NHS way higher than generic brands so future research can continue. After a ten year window often the branded drug recommend to the NHS a change in formula, and surprise surprise, a generic arrives within the same month. In that ten year window the branded drug has to claim its profits before the formula has to be made public to manufacturers, who can then choose to produce the drug themselves. The generic can often cost pennies rather than pounds.
Example: Tritace Capsules were given a formula improvement to a tablet. Same month the generic capsule arrive on the market Ramipril. Doctors were 'advised' by the company to use the tablet, which doctors dutifully did until a directive went out by the NHS the generic would only be supplied on the NHS.
In the shop we have a monthly index of all the drug prices. These are the prices the NHS are prepared to pay for each prescription.
If a script comes in for Ramipril with no other instructions, we supply capsules at a cost to the NHS of about £1.80 plus 90p dispensing fee. This is what the NHS pay us.
If a doctor insists on tablets he must write so, costing the NHS £12 plus 90p fees.
The NHS pricing authority will eventually write to the doctor to use capsule unless he can prove a need for tablet.
Worse for us, a manufacturer will and does create a market by limiting supplies, which pushes the generic price up so we the Pharmacy cannot afford to buy it, because we will not be reimbursed by the NHS. It does work the other too.
If we can obtain a drug at less than the NHS index price, then we keep the profit : Ramipril bought in a £1.10, profit of 70p plus 90p fee.
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