In August, this product has had the highest concession price of any of the 76 products with concessions granted. We’ve looked at the trends in the minimum prices by supplier since the beginning of 2022 to see if there is a relationship between the different suppliers and the minimum prices, the English drug tariff and concession prices.
The first thing that was evident was that the drug tariff price was far too low, so that the majority of suppliers were making a loss even before the shortage. When the concession was granted in January 2023 it was again set far too low with at least six suppliers having prices above this. In the months that followed the concession was raised to try and keep dispensing profitable, but the market rose well above the concession level.
It’s interesting also to look at the two months during which concessions were granted in January and February 2022 which had the same problem, with concessions granted, at such a low level that they were probably not an awful lot of use to many pharmacies.
It’s probable that the low reimbursement price was a long-term factor in deterring companies from making or selling this product, and there were to dropouts during 2022. Additional to this, a number of companies reduce their prices in the run-up to the shortage which may have been the final trigger, and may have led to stockpiling which could have caused the shortage.