Pharmacy Daily | CSO “dark clouds”

SIGMA Pharmaceuticals md Mark Hooper, chair of the National Pharmaceutical Services Association, has highlighted major risks to Australia's National Medicines Policy as full-line wholesalers continue to be threatened by unregulated exclusive distribution.

Speaking on the State of the Industry panel at APP on Fri, Hooper said the current model has become unsustainable due to PBS reform eroding margins year after year without a pricing floor.

He said with some manufacturers continuing to withdraw high value products from wholesalers in favour of direct distribution, this was creating a single source of supply for key medicines.

"This is unthinkable from a risk management perspective,' he said.

"They are effectively cherry-picking; it's a version of short-line wholesaling with no benefit to patients or the government and creating more work for pharmacists," Hooper said.

He highlighted the distinction between "exclusive" and "direct" distribution.

"We don't have a problem with manufacturers offering a direct solution, but any medicine on the PBS should also be available through CSO wholesalers," he said.

Hooper also differed with comments by Health Minister Greg Hunt who had earlier claimed a solution to the exclusive supply issue was imminent.

"I worry that the government and the department are just focusing on 'we'll put DHL in the CSO'," he said.