Phagro Raises Concerns Over Wholesale Pricing Practices

Thu 27th Mar, 2025
The chairman of Phagro has expressed concerns regarding the potential implications of current wholesale pricing practices on the economic viability of pharmacies. He emphasized the need for regulatory adjustments following a ruling from the Federal Court in February 2024, which deemed discounts on prescription purchases as rebates subject to pricing regulations. This decision has resulted in significant financial losses for pharmacies, estimated at an average of around EUR15,000 per pharmacy, according to negotiators from the Union and SPD in a recently released health working group report. The working group has indicated plans to re-allow these discounts, stating that this change would be financially neutral as it involves a mere reallocation between wholesalers and pharmacies. In light of this, the wholesale sector is voicing its apprehensions. The Phagro chairman, Marcus Freitag, cautioned against jeopardizing the wholesale economy through these pricing shifts, indicating that the organization is committed to preventing such risks. Phagro has put forth three key demands to the upcoming government, advocating for a reform of the Drug Pricing Regulation. Freitag has insisted that any changes should maintain the ceiling on discounts. Notably, the working group's report does not address the issue of wholesale compensation. Freitag noted that allowing discounts would provide immediate relief for pharmacies, although the extent of this relief would depend on individual negotiations with wholesalers. He also acknowledged the overdue adjustment of the fixed remuneration for pharmacies, which he believes should reflect their crucial role in health care provision. Additionally, the proposed regulation of mail-order pharmacies has been welcomed, with Freitag highlighting the urgent need to ensure patient safety and fair competition. The report outlines a commitment by Union and SPD to impose uniform requirements on both mail-order and local pharmacies, particularly concerning adherence to cold chain management and documentation obligations.

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