Above is an interview just aired on ABC Radio National with David Quilty, Director of the Pharmacy Guild, responding to earlier criticism from consumer groups that Australians are paying too much for pharmaceuticals and that taxpayers are being ripped-off by pharmacists, which are profiteering by continuing to receive the old manufactured price from the Government on PBS medicines as the price paid by pharmacies falls.
Interestingly, David Quilty concedes that taxpayers can pay up to ten times as much subsidising medicines when they come-off patents, which flows directly to pharmacist’s margins. He also notes that the Pharmacy Guild doesn’t object to the Government shortening the time limit on the time limit required for drug manufacturers to disclose the price at which they sell medicines to pharmacists to 12 months from 18 months. However, in return, they want the Government to compensate them for lost profits arising from the reform by increasing taxpayer assistance by another $149 million (on top of the $3 billion already received under existing agreements).
Rent seeking 101…
