Numark slams manufacturer quotas as ‘a weapon of commercial protection’

Numark has hit out at medicines manufacturers over stock shortages, accusing the companies of using quota systems "as a weapon of commercial protection".
Although quotas used to manage supply of limited stocks into the market and protect supplies to patients could be a good thing, Numark managing director John D'Arcy  (pictured) warned: "The reality appears to be that they are being used by manufacturers more as a weapon of commercial protection."

Mr D'Arcy described the use of quotas as "arbitrary and opaque" and called it "the one area that creates the biggest problem for pharmacists". He called for manufacturers to make the quota system more transparent.

The comments came as part of Numark's response to the all-party pharmacy group (APPG) inquiry into medicines' shortages, launched on last year.

John D'Arcy: "quotas are arbitrary and opaque"

The group said it believed the current supply issues were in the main a consequence of manufacturers "adjusting their processes to cut costs in response to a changing market". "The combination of the resultant direct to pharmacy, reduced wholesaling models and the associated system of quotas is reducing the availability of stock in the market while simultaneously reducing choice and competition", it said.

The group also highlighted the lack of impact of the supply chain best practice guidance published last year and warned that pharmacists now faced an "over burdensome layer of administration".

The Association of the British Pharmaceutical Industry (ABPI) has previously stressed that its member companies are "signed up to and following the best practice guidance".

The ABPI also argued last November that medicine shortages were "primarily" caused by the export of medicines intended for UK patients, and said the pharmaceutical industry had taken "many additional steps" to ensure that it was over-producing and supplying the quantities of medicines needed by UK patients.

The deadline for submissions to the APPG inquiry has been extended to January 20, after the group received a higher than expected number of submissions.

For all the latest news on the supply chain, including preliminary results of the C+D Stocks Survey 2011, click here.


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A A, Community pharmacist
Posted on 11 January 2012.
Let me tell you a story about one particular DTP / restricted wholesale supplier which started on 14th December 2012.
I discovered that Daiichi Sankyo had under supplied AAH with Evista 60mg tablets needed for this month, the result being that by the 13th December there was no stock available from AAH.
On phoning Daiichi Sankyo on 01753 893600 I was told to call another number 01483 755133 who were an “emergency wholesaler” who could let pharmacies have Daiichi Sankyo stock not available from the DTP / Restricted wholesaler chosen by Daiichi Sankyo.
What Daiichi Sankyo fail to tell you is that when you place an order with the other wholesaler they charge £12.50 P+P plus a £10.00 administration fee. If you need a delivery on a Saturday they will charge £17.50 P+P as well as the £10.00 admin fee. On top of that the pharmacy receives no discount whatsoever.
As pharmacy contractors can claim the P+P and the admin fee as out-of-pocket expenses the cost to the NHS for 1 x 28 Evista 60mg tablets @ £17.06 becomes £39.56 Mon-Fri and £44.56 if delivered on a Saturday. The pharmacy will not have all their expenses covered because there is no discount when ordered this way, but the pharmacy will suffer from discount claw-back, and no payment for having to make the call to the other wholesaler in the first place.
When I called Daiichi Sankyo back regarding this sorry state of affairs I was told that Daiichi Sankyo had no input into how the other wholesaler chose to supply pharmacies or how much to charge them.
Considering the time and effort companies like Daiichi Sankyo put into selecting which DTP / restricted wholesaler they eventually choose, it seems a bit incredulous they don’t take more responsibility for the actions of a “wholesaler” they recommend pharmacies contact for “emergency” supplies of their products!
I think the whole thing stinks so I then contacted PSNC. It turns out I am not the first person to contact PSNC about this and they have been in discussion with Daiichi Sankyo and the DH about this very “sharp” practice for quite a while, not just this month. Considering in 2010 there were 115,000 plus scripts written for Evista 60mg tablets you can see the potential for the NHS being overcharged by a vast amount on just one medicine.
What will it take to make the DH take action against companies like Daiichi Sankyo? Patient safety in this instance might not be at risk, but should NHS resources be used to pay “emergency wholesalers” their supposed costs, when shortages in the normal wholesale chain are brought about by the very companies who keep telling everyone there is plenty of stock in the supply chain?
By the way, two days after I started creating a stink about the “missing” Evista tablets suddenly AAH had stock available. Coincidence? You decide.
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Harnek Chera, Superintendent
Posted on 11/01/12 17:03 in reply to A A.
It just stinks!
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Peter Mcauley, Community pharmacist
Posted on 11/01/12 19:43 in reply to A A.
I agree totally

My recent example is with Novartis and Emselex

I get the medicines sent very promptly, but invoiced at full price with no discount etc.

Is this the reason, there is no supply of these medicines at the wholesalers, they do not need to pay discount ?
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