Pharmacists warn of price gouging over Strep A antibiotic shortage as prices soar

Exclusive: Pharmacists say cost of antibiotics has increased tenfold as shortages hit

Pharmacists say the cost of antibiotics has risen tenfold in recent days amid claims suppliers are seeking to “profiteer” from a shortage caused by the deadly Strep A outbreak.

Images seen by The Independent showed the costs of amoxicillin from one supplier rose from £2 to £19.36 for 100 ml.

That’s well above the £1.92 tariff paid per 500mg that pharmacists are reimbursed by the NHS for supplying the drug via prescription.

The government has been urged to get a grip on spiralling drug prices as pharmacists fear suppliers are capitalising on the antibiotic shortages.

One national pharmacy source said: “We are now seeing stock entering the market at a tenfold higher price. Seems wholesalers are exploiting the situation to profiteer and increase prices. The prices pharmacies are paid are fixed by the NHS and so pharmacy is in the invidious position of having to dispense at a loss or refuse to supply which is in breach of NHS contracts.”

One supplier whose stock rose to almost £20 said the rise was a system glitch and prices had now returned to around previous levels.

Evidence of prices on Friday shared with The Independent shows drug prices across major wholesalers were higher, in some cases double, the cost on Thursday.

It comes as the NHS has been forced to speed up deliveries of  Strep A antibiotics as pharmacists have struggled to get supplies of drugs to treat the bacterial infection that has killed 16 children in the UK since September.

David Webb, the NHS chief pharmaceutical officer, said on Friday that there may be a “limited supply” of antibiotics – including penicillin – in some retailers and pharmacies due to a surge in demand for the medicines.

“We are working closely with the Department of Health and Social Care (DHSC), which has overall responsibility for medicines supply and has taken actions to help ensure medicines continue to be available,” he said.

Pharmacists say that in addition to shortages they’re facing rising prices which affect their bottom line.

Martin Sawer, executive director for the Healthcare Distribution Association, which represents the largest drugs wholesalers in the UK, said: “These treatments related to Strep A are generic [drugs] so the prices charged to pharmacies are based on what the manufacturers put their products on the market at and it’s a commodity market so when demand exceeds supply that’s when prices go up.”

Dr Leyla Hannbeck, chief executive officer at the Association of Independent Multiple Pharmacies told The Independent on Friday: “Yesterday a couple of wholesalers made [antibiotics] available but at a higher price, and then my understanding is since this morning the price has calmed down … but still higher than it was before. I think we complained, and suppliers took it down.”

“Generally, since the beginning of this year, we have seen the costs of everyday medicines skyrocket, medicines which might cost £1.50 are now costing £50 … Pharmacists are paying much higher prices but the government still reimburses me at £1, and until they adjust the tariff, the pharmacists are going bankrupt.”

Dr Hannbeck explained this was happening across a record number of medicines and warned many pharmacies may shut their doors for good next year.

“Pharmacies don’t put their costs on to the consumer because we are bound by our healthcare ethics,” she said.

She said wholesalers have argued their costs have gone up but said the “government has lost a grip” on the situation.

Raza Ali, a community pharmacist-owner said: “The biggest problem we face is wholesalers withholding stock. Once it’s short and the DHSC grants a concession price, lo and behold stock is available but at a far higher price. Usually above what government pays us. So we are providing medicines at a loss to the public. We are literally paying for the medicine from our own salaries.”

Mr Ali suggested there was some “profiteering going on with wholesalers and [feared] in the next week or two, if there are antibiotics back in stock, what you’ll find is the price is going up”.

Another community pharmacist, Sri Kanapathy, from Durham, told The Independent that one antibiotic supplier inflated its price by “500 per cent”.

He said: “There is a genuine shortage of the medication and be the wholesale sector, trying to manipulate the prices and inflating the prices.”

The DHSC has been approached for comment.