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ShareDoc - Wed, 28 Dec 05 :

I hate to put a damper on the simvastatin issue but the price of generic drugs is governed by the "drug tarrif" which changes every month. The price that appears in the drug tarrif is the ammount that dispensing GP practices + Pharmcists get paid for dispensing that drug, i.e they have to buy it for less to make aprofit on it. This means that BPRG/Crescent have to manufacter it for even less for them to make a profit on it. If they make a new formulation of it then it becomes a "branded generic" which means it may have a much higher "drug tarrif price" but there is pressure on prescribers (GP's + Hosp Doctors) to use the basic generic formulation which works just as well.


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