We are all aware of the impending changes to listing, funding and pricing of the various brands. But are we all aware of the cost of changing before the application of reference pricing. Please keep in your mind that we are not working with $’s but parts of $’s when thinking margin. So every little part of a $ counts especially when we talk volume.

1 April 2017 will see the first part of the change with the listing and funding of Enlafax XR Caps 37.5 mg 84, Enlafax XR Caps 75 mg 84 and Enlafax XR Caps 150 mg 84. The listing price is substantially less than current pricing for Efexor XR and Venlafaxine-Arrow.

With our margins diminishing quickly we need to understand how these changes can affect our business if implemented earlier than necessary. Yes you will ultimately need to change but do it for the right reason and right time.

Period 1 April to 30 May 2017.

37.5 mg –

Efexor XR Cap 28 schedule price $5.69, providing a margin of $0.1707c plus per pack fee $0.1720 = $0.3427 per dispensing of 30. Additional discount available  purchasing from Pfizer Website of 12% until 12th May 2017 in assorted parcel.

Venlafaxine XR Tabs 28 schedule price $5.06, providing a margin of $0.1518c plus per pack fee $0.1720 = $0.3238 per dispensing of 30.

Enlafax XR Caps 84 schedule price $6.38 (which will be repacked into 30 at an additional cost) therefore providing a margin of $0.0638c plus per pack fee (pro-rata) $0.0614 = $0.1252 per dispensing of 30.

75 mg –

Efexor XR Cap 28 schedule price $11.40, providing a margin of $0.3420c plus per pack fee $0.1720 = $0.5140 per dispensing of 30. Additional discount available purchasing from Pfizer Website of 12% until 12th May 2017 in assorted parcel.

Venlafaxine XR Tabs 28 schedule price $6.44, providing a margin of $0.1932c plus per pack fee $0.1720 = $0.3652 per dispensing of 30.

Enlafax XR Caps 84 schedule price $8.11 (which will be repacked into 30 at an additional cost) therefore providing a margin of $0.0811c plus a per pack fee (pro-rata) $0.0614 = $0.1425 per dispensing of 30.

150 mg –

Efexor XR Cap 28 schedule price $13.98, providing a margin of $0.4194c plus per pack fee $0.1720 = $0.5914 per dispensing of 30. Additional discount available purchasing from Pfizer Website of 12% until 12th May 2017 in assorted parcel.

Venlafaxine XR Tabs 28 schedule price $8.86, providing a margin of $0.2658c plus per pack fee $0.1720 = $0.4378 per dispensing of 30.

Enlafax XR Caps 84 schedule price $11.16 (which will be repacked into 30 at an additional cost) therefore providing a margin of $0.1116c plus a per pack fee (pro-rata) $0.0614 = $0.1730 per dispensing of 30.

225 mg –

Venlafaxine XR Tab 28 the only listed product.

Both Efexor XR and Venlafaxine will be reference priced from 1 June 2017, therefore any price decrease provided by the supplier should be available from 12th May 2017 where price support is being provided.

Pfizer have advised they will provide price support, however at this time we are unable to advise to what $ level.

Actavis have advised they will price support to the new subsidy level for SOH and close of trade 30 May 2017.

So in a nutshell you can maintain your profitability on these items until at least 12th May 2017 with prudent stock management and purchasing.

Period 1 June 2017 to 31 August 2017

Reference pricing will apply to Efexor XR and Venlafaxine-Arrow. If the supplier does not match the new pricing then a patient surcharge will apply.

In addition the Special Authority requirement for Efexor XR will be removed.

1 September 2017 onward only Enlafax will be listed and subsidised.

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