The Independent Pharmacy Contractors Network (IPCN) has launched a “national campaign” to support pharmacies challenging “disputed clawback demands” made under Eli Lilly’s Mounjaro rebate scheme.
The drug manufacturer launched the rebate scheme after it hiked the price of its weight loss medicine last September.
Under the scheme, pharmacies that purchase Mounjaro at the increased price, but charge patients the post-rebate level, are able to claim a retrospective rebate from Lilly at the end of each month.
Read more: Revealed: Lilly creates ‘Mounjaro rebate scheme’ for pharmacies
But the IPCN said on July 26 that contractors across England have reported “significant concerns that the rebate calculations supplied to them cannot be reconciled against their own dispensing and purchasing records”.
“Many have also raised concerns regarding the short notice being given before substantial deductions are made from pharmacy accounts,” it added.
The IPCN said the campaign “calls for complete transparency before any financial recoveries are pursued”.
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It “does not seek to avoid legitimate financial obligations”, the body said, but aims to ensure “any recovery is based on accurate, transparent and verifiable data”.
In addition to providing its members with a “formal dispute template”, the IPCN has urged pharmacies to request the “full disclosure of the NHS Business Services Authority dispensing data used in calculating rebates” and “wholesaler purchasing data relied upon in the reconciliation process”.
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It also encouraged pharmacies to ask for confirmation that Mounjaro stock purchased before the price hike is “excluded from any clawback calculations”, as well as a complete record of rebate payments already made.
And it called for the “immediate suspension of any clawback or account deductions while disputes remain unresolved”, adding that these “are reasonable requests consistent with basic principles of commercial transparency and natural justice”.
“Fairness and transparency”
IPCN spokesperson Rifat Asghar-Hussain said the campaign is about “fairness, transparency and proper commercial practice”, and pharmacies “are not refusing to honour legitimate rebate arrangements”.
He added that businesses “cannot reasonably be expected to accept substantial deductions from their accounts without being able to verify the underlying calculations”.
“Any organisation making financial claims has a responsibility to demonstrate how those figures have been derived,” Asghar-Hussain said.
Read more: NHS spend on Mounjaro up by 377% compared to last year
And he stressed that “large deductions made at very short notice have the potential to create avoidable cash flow problems for businesses already delivering essential NHS services”.
Eli Lilly told C+D it has “clear contractual terms” and is “implementing reconciliations based on those terms”.
“We will work with individual providers on an appropriate resolution,” the company added.
Read more: ‘Cannot go on’: Three-quarters of English pharmacies losing money
It comes after a survey by Community Pharmacy England (CPE) found that three-quarters of community pharmacies across England are losing money due to funding cuts and increased costs.
And it follows CPE announcing that some £1.55m worth of unpaid or referred-back items are awaiting action by pharmacy owners.
