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1、ConsultationresponseDepartmentofHealthconsultationonanewvalue-basedapproachtothepricingofbrandedmedicinesMarch2011PharmacyVoiceresponsetotheDepartmentofHealthconsultationonanewvalue-basedapproachtothepricingofbrandedmedicinesIntroductionThereareover13,000co
2、mmunitypharmaciesintheUK,locatedinneighbourhoodsandhighstreetsacrossthecountry,supplyingover800millionprescriptionstopatientseveryyear.Communitypharmaciesarelocatedatthecriticalpointattheendofthesupplychain,wherethemedicineisdeliveredtothepatient.Thepharmac
3、istcombinestheirscientificknowledgeofthousandsofmedicineswiththeirabilitytoefficientlyhandlethesupplychain,todeliverasafeandresponsiveservicetopatients.Inrecentyears,however,thisefficientsystemhasbeenseverelychallenged,asaresultofavarietyoffactors.Pharmacie
4、sarefacingunprecedenteddifficultiesinobtainingmedicinestheyneedtomeettheneedsoftheirpatients.Quotasarebeingapplied,bymanufacturersandwholesalers,asabluntinstrument–andinmanycasesaredelayingsupplyatalocallevel.Variationsinprescriptionvolumesandlocalprescribi
5、ngfactors(suchaschangestolocalformularies)confoundmanufacturers’attemptstopredictneedaccurately.Itisdemonstrablethatchangestothestructureofmedicinessupplyarelessefficientthanpreviousarrangements,increasingcostsandadministrativeburden,andreducingflexibilitya
6、ndcompetition.Discountsthatpharmaciesreceivefromwholesalersandmanufacturershavedecreased,increasingcostsforpharmacies.Pharmacistsareincentivisedtopurchasedrugsefficiently,andreduceddiscountsfrommanufacturersultimatelyaffecttheoverallcostofthedrugsbudgetfort
7、hetaxpayer.Restrictedsupplyarrangementsfromthemanufacturershaveforcedpharmaciestoincreasethenumberofwholesalerstheydealwith,increasingtimespentonadministration.ItisvitalthattheGovernmentworkswithpharmacyandothersupplychainstakeholderstoseekaresolutiontothes
8、eproblems.Itisalsocriticalthatchangestopricing,assetoutintheconsultation,donotgenerateunintendedconsequenceswhichplacemorestressonthesupplychain.GeneralWesupportthebroadaimsforvalue-basedpricing(VBP)se
