HSE moves to slash drugs mark-up

PHARMACIES and drugs companies have claimed a decision by the Health Service Executive to slash the mark-up paid for medicines will put many community pharmacists out of business.

Describing the move as “catastrophic”, the Irish Pharmaceutical Union (IPU) and drugs wholesalers, United Drug and UniPhar, said many communities would be left without pharmacies if the plan went ahead.

Under the deal, which is to take effect from next January, the 17.66% mark-up presently paid by the HSE to wholesalers is to drop to 8% with a further reduction to 7% in January 2009. The agreement is expected to save the organisation 100 million in 2008 alone.