Exclusive direct warning

THE National Pharmaceutical Services Association has renewed a call to end exclusive-direct distribution of PBS medicines, saying if monopoly supply arrangements continue there will be no back-ups to protect patients from a single point of failure in the supply chain.

Speaking at the Eye for Pharma conference in Sydney yesterday, NPSA Chairman Mark Hooper from Sigma Pharmaceuticals said distribution which bypassed CSO wholesalers undermined government policy by restricting supply to a single source.

Hooper noted that the CSO funding pool supported wholesalers in meeting the high regulated standards, such as the distribution of PBS products to all pharmacies - including low-volume and low-value medicines - as well as the distribution of the full PBS range to rural and remote Australia, generally within 24 hours.

“Ensuring the system works as intended does not limit any direct distribution channels pharmaceutical manufacturers may choose to explore, yet it prevents monopoly or exclusive arrangements,” he said.

The peak wholesaler group had been working with the Department of Health to “ensure all aspects of patient access to PBS medicines are regulated to consistent, high standards,” Hooper said.

“The CSO isn’t about allowing individual companies to gain more control of the market...it’s about securing a supply chain that works in patients’ best interests.”

The Government is currently undertaking a review of the CSO funding pool (PD 13 Jun) which included a consultation period through until the end of Jun.