Tadalafil Tabs were launched in November 2017 in competition with Eli Lilly’s Cialis Tabs. Generic prices post launch were around the £10.00 mark, significantly lower than the Cialis reimbursement price at the time which was £54.99. However, eight months after launch in July 2018 the main generic manufacturer increased its prices from £5.50 to £45.00 per pack. In October 2018 they increase them again to £53.99 before bringing prices back to normality over the following three years.
This price increase may have been due to a supply disruption, but because no concession was announced at the time it may have been simply that the manufacturer realised that the market prices were so far below the reimbursement price that there was more profit to be made.
Even at the very highest point where market prices were on average £45.22, they were still significantly below the reimbursement price of £54.99, leaving a realistic margin for pharmacies. However, prices did decay between 2018 and 2021 as the market became more competitive and the reimbursement price followed it. In December 2021 the reimbursement price rose and only fell again in July 2024, although there was a good deal of market disruption during this period, as can be seen from the market price variability, there was no price spike.
If prices start to behave erratically, in a product that has previously seen a very high price spike, both regulators and the supply chain have a tendency to overreact. This seems to have been what happened in this case. However, the situation is now reversed as market prices have risen, probably due to a key manufacturer’s supply difficulties, and the reimbursement prices have fallen making the product unprofitable for pharmacies. A concession was announced in January 2025, but just £1.47 higher than the reimbursement price, and £0.31 lower than the average market price.
If the manufacturers supply difficulties continue, prices may rise further, but we won’t know about concessions until mid-February. However early indications suggest the prices are stabilising, with an average of £11.58 as of the 4th of February (The current maximum February market price is, but the minimum is £1.66).