The TLV proposes principles for the pharmacy retail margin

In connection with the regulation of the pharmacy market the TLV (The Dental and Pharmaceutical Benefits Agency) now presents its interim report to the Swedish Government. In its report the TLV proposes principles for the pharmacy retail margin for prescribed pharmaceuticals and monitoring of profitability in the market. The next step will be a deeper dialogue with the players on the market before the TLV submits a detailed report on its remit on the 1st of April.

The Swedish Government has proposed the pharmacy market be reregulated the 1st of July this year. It will then be possible for other players than Apoteket AB to run pharmacies. Part of the work involved before opening up the market is structuring the retail margin for prescribed pharmaceuticals and proposing how profitability in the pharmacy market shall be monitored and followed up.

The retail margin regulates the compensation due to pharmacies for serving customers with prescriptions. Profitability in the pharmacy market shall be reasonable so that the objectives of increased accessibility, service and value for the consumer can be achieved. However, this without increasing the price of medicines.

− Now we have presented proposals for principles for profitability and the structure of the retail margin to the Government. These principles will become the point of departure for our continued and deepened discussions with players in the area, says Gunilla Hulth-Backlund, Director-General at the TLV.

The TLV will invite representatives for new and aspiring pharmacy candidates, the pharmaceutical industry and distributors in order to gather feedback to guide the way forward in the work. Furthermore, the TLV will develop its dialogue with the county councils.

Information on the structure of the retail margin will be submitted in good time before the sale of the out-patient pharmacies is carried out, as well as other interim reports important for the investment decisions of new players. This is an interim report for the Commission given that was given to the TLV by the Government in December 2008.

The Commission is carried out in consultation with the Ministry of Social Affairs and a proposal for the retail margin is to be presented to the Government the 1st of April this year. By this time the TLV shall also detail how profitability is to be calculated and followed up on as well as how the model for price-setting and the mechanism for substitutable medicines can be developed.

This creates new demands on the knowledge and skills required and an increased understanding of how the market works. For this reason the TLV is strengthening and building the organization in order to carry out the new tasks given to the agency.