The Association of the British Pharmaceutical Industry (ABPI) has applauded the MHRA's decision to end pharmacies' ability to trade medicines without having a wholesaler's licence, praising the "positive effect" the move will have on the UK healthcare system.

The MHRA has repealed section 10(7) of the Medicines Act 1968 – more widely known as the 5 per cent rule – which pharmacies without a wholesale dealer's licence (WDL) rely on to trade small volumes of medicines to other healthcare providers such as pharmacies and GP surgeries.

The change comes into effect in July 2012. From then, pharmacies without a WDL will only be able to trade medicines to enable the provision of healthcare services, not for commercial reasons.

"The repeal of this legislation is a good first step to protect UK patients and the NHS" Stephen Whitehead, ABPI

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The MHRA said this meant trades that were occasional, small in quantity, and done to meet an individual patient's need and on a not-for-profit basis, would still be allowed. ABPI CEO Stephen Whitehead welcomed the MHRA's decision, suggesting that it could help to alleviate stock shortages by preventing pharmacies without licenses from trading medicines abroad. "While there are still significant issues to resolve in order to prevent medicines intended for UK patients being sold abroad, the repeal of this legislation is a good first step to protect UK patients and the NHS," said Mr Whitehead.

In order to ensure UK patients get access to the medicines they need, the ABPI is calling for pharmacy wholesaling and dispensing activities to be legally separated so that pharmacies have to prioritise patients in this country above wholesaling when drugs are in short supply.

"The legal separation of pharmacy wholesaling and dispensing activities would enable manufacturers to prioritise which part of the pharmacist's business they are supplying when a product is in short supply," said Mr Whitehead, saying this would mean pharmacists serving UK patients first.