There seem to be a number of things going on with this product in the long-term. The first thing we can see is that market prices rose dramatically to April 2020 at which point a Concession was announced and an increase in the Drug Tariff introduced fairly shortly afterwards. After this, market prices gradually dropped to a low point of £1.54 in May this year. It may have been that low price which triggered this month’s market price increase, or the long-term reduction in the Drug Tariff since April 24.
Normally to keep a product in free supply within the UK it needs to be profitable for both Manufacturer and Pharmacy, here it looks as if the profitability has been squeezed out of the market at both ends.
The first time prices rose, and there was a shortage, it seemed to be because market prices had fallen below £2.00. This time prices have dipped below £2.00 a number of times without triggering a market price hike. Perhaps Manufacturers are more efficient now and better at managing costs. A shortage was not triggered until market prices fell below £1.80. That may be the point at which Manufacturers can no longer make a profit out of the product and cancel further production.
For Pharmacists, the drop in the Drug Tariff from £4.93 back at the beginning of 2024 to its low point of £2.76 in April 25 may have made this product marginally profitable at best. With market prices high at an average of £9.16 in August and £7.75 in September, and with the Drug Tariff at just £3 and August’s concession at £9.38, there’s not an awful lot of profit in this product for Pharmacists.