Sustainability

The price paid by the NHS for generic medicines is not that charged by manufacturers but includes distribution costs (which vary depending on the product type) and the retained margin for community pharmacy.

Typically, the reimbursement price of a generic medicine listed in Category M of the Drug Tariff may amount to approximately twice (or more) the manufacturer's actual selling price (ASP).

For years, competitive procurement of medicines for the NHS by community pharmacies has driven down the prices of generic medicines. This model has saved taxpayers billions of pounds. Unfortunately, prices for generic medicines are at a potentially unsustainable low point.

At present, the reimbursement price for over 850 million generic medicine packs is less than £1 for up to a month's supply. This needs to be addressed for the market to continue successfully functioning.