Manufacturers body: The FMD will cause generics prices to rise

The cost of implementing the EU’s medicines scanning law across the supply chain will cause medicines prices to increase, the BGMA has said.

Warwick%20SMith%203%20.jpg
Warwick Smith: I suspect the FMD is having an impact already

The EU’s anti-counterfeit legislation, the Falsified Medicines Directive (FMD) – which requires all pharmacies to be able to scan barcodes on medicines packaging at the point of dispensing – came into force last month.

BGMA director Warwick Smith warned that financial pressures of the FMD are being felt across the supply chain, and this will be reflected in the price of medicines.

“The cost is already in the market, even if the packs are not,” he told C+D at the Sigma conference in Muscat, Oman, last month.

The FMD has already cost the pharmaceutical industry “hundreds of billions of pounds” in production costs of adding 2D barcodes, Mr Smith claimed.

On top of this cost, manufacturers paid £9 million to register with SecureMed – the UK group tasked with implementing the FMD, he claimed.

“I suspect [the FMD] is having an impact already, but it will be quite gradual and quite small,” Mr Smith added.

Brexit having “minor” effect on prices

Mr Smith acknowledged that Brexit is having a “small” effect on medicines prices, but “it will get bigger”.

Of the factors affecting generics prices, Brexit is “probably the least impactful”, he said. 

Read Warwick Smith’s blog on what other factors pose a threat to generics prices.

Sign in or register for free

Latest from News

‘Smaller than usual’ PQS reinstated under new funding deal

 
• By 
 • comment

The government has announced that the pharmacy quality scheme (PQS) will be “reinstated” in 2025/26 as part of the new funding deal but is “smaller than usual”.

Government to ‘review’ margin system and faster Cat M process

 
• By 
 • comment

The new pharmacy funding deal has revealed incoming changes to the medicines margin, including plans for an “early entry” Category M process.

Pharmacies can ‘change’ core hours under new contract

 
• By 
 • comment

The government has announced that pharmacies in England will be able to undergo an “application process” to change the days and times of their core opening hours to “better serve their patients”.

More from Politics