By Clara Carter, UK Country Manager, Generics

When was the last time you bought something for 99p or less? It’s hard to believe, but many of the medicines dispensed by your local pharmacy fall into this price range. In fact, 600 million packs of medicine are being reimbursed at 99p or less (based on September’s tariff). This statistic highlights the incredible value that our health service brings but it also points to a growing problem that we can no longer afford to ignore.

During the recent ‘Generics, Branded Generics and Biosimilars: NHS Update’ panel hosted by Life Sciences Access Academy, I had the opportunity to discuss some of the pressing challenges facing community pharmacies across the UK.

The past year has been tough for community pharmacies across the UK. According to the National Pharmacy Association (NPA), nearly 50% more pharmacies closed in the first few months of 2024 compared to the same period in 2023. That’s the equivalent of ten pharmacies closing their doors every week – a worrying trend, especially when demand for pharmacy services is on the rise.^[i]

This ongoing crisis reached a new low recently, with the announcement that UK pharmacies have voted to cut back services to ensure they can remain operational. This decision reflects the mounting pressures pharmacies face in an unsustainable funding environment. The closure of ten pharmacies a week is no longer just a statistic but a stark reality that could worsen if these service reductions become widespread.^[ii]

The situation is not entirely unexpected; the Pharmacy Pressures Survey 2024: Funding and Profitability Report predicted that only 1 in 6 pharmacies would be able to remain open for another year if current financial pressures continued. With more people turning to their local pharmacies for help, the funding model simply isn’t keeping pace, leaving many struggling to remain open.^[iii]

At the heart of this crisis is a complex supply chain involving multiple stakeholders—from manufacturers and wholesalers to pharmacies and healthcare providers. Any disruption can cause a ripple effect across the system, and this is compounded by a funding and reimbursement model that hasn’t adapted to the realities of today’s market. While the price of medicines can rise, pharmacy reimbursement models often remain fixed, creating a significant shortfall.

The recent announcement of a £9 million monthly clawback starting in July only adds to these financial pressures, placing pharmacies in an unsustainable position where they may have to dispense medicines at a loss.^[iv]

Initiatives like Pharmacy First – which aims to empower pharmacies to deliver a broader range of clinical services – are a step in the right direction. However, without a fair reimbursement model and a more sustainable funding structure, Pharmacy First alone will not be enough to keep pharmacies afloat. Pharmacies are increasingly being asked to do more with less, and the strain is showing.

Another area that’s causing a lot of uncertainty is concessionary pricing. Pharmacists often don’t know how they will be reimbursed versus the price they paid for the medicines they dispense. This lack of clarity makes it incredibly difficult for pharmacies to plan and operate effectively. We need a more transparent and reliable system to ensure pharmacies can continue to serve their communities without constantly worrying about financial viability.

As we look to the future, initiatives like Our Future Health are becoming increasingly important. This research programme aims to recruit five million people across the UK to better understand how we can prevent, detect, and treat diseases such as cancer, heart disease, and dementia earlier. So far, just over 1.9 million people have signed up,^[v] and the findings from this research could lead to earlier diagnoses and better treatments for many conditions that affect us all.

However, with these advancements will come increased demand on the supply chain and community pharmacies. As conditions are diagnosed and treated earlier, it’s essential that data and emerging trends are shared with manufacturers early enough for them to meet the growing demand. Ensuring pharmacies are equipped to respond effectively will require a funding model that supports them, a reliable supply chain, and a well-coordinated plan for adapting to these changes.

As part of the pharmaceutical industry, we have a responsibility to support our pharmacy customers. This means making sure our supply chains are reliable and efficient so that pharmacists can focus on what they do best – caring for their patients – rather than spending hours trying to source out-of-stock products.

Looking ahead, community pharmacies are expected to play an increasingly significant role in our healthcare system. However, for this potential to be realised, adaptations will be necessary.

As these changes unfold – whether it involves adjusting working practices or rethinking the physical space of a pharmacy – it is crucial that we offer the support needed to ensure they continue to thrive as a vital part of our healthcare network

The future of our healthcare system will depend on how well we support these front-line services. Let’s make sure we’re doing everything we can to help them thrive.

Date of prep: December 2024 Job bag number: UK-Non-P–01514

[i] Community Pharmacy England (CPE) ‘Ten pharmacies closing every week in England’ 16 May 2024. Last accessed: November 2024

[ii] The Guardian ‘Pharmacies vote to cut services unless UK government acts over ‘crisis’‘ 14 November 2024. Last accessed: November 2024

[iii] Community Pharmacy England (CPE) ‘Pharmacy Pressure Survey 2024’. Last accessed: November 2024

[iv] The Pharmacist. ‘‘Outrageous’ £9m monthly clawbacks after DHSC error’ 30 July 2024. Last accessed: November 2024

[v] Our Future Health. ‘The UK’s largest health research programme’. Last accessed: November 2024