Generic Product Price Bounces

Sep 7, 2022 | Generics, UK Brands

Price bounces happen after the originator product (Migard Tabs 2.5mg 6 in this case) loses its exclusivity (LOE) and generics have been launched. The market price of the generic can fall very quickly if there are lots of generic licence holders. However, where product prices fall very rapidly, licence holders can see the market rate fall below a point at which they can make a profit. At this point the remaining stock in the market becomes more valuable as the amount available to supply pharmacies declines.

These price bounces happen very frequently, and can give opportunities for the originator product to fill the supply gap. They also prompt the DHSC (Dept of Health and Social Care), in consultation with the PSNC (Pharmaceutical Services Negotiating Comittee)  to grant price concessions so that pharmacies can still make a profit on dispensing these products.

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