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Small and Medium Sized Pharma Companies': Financial Plea to Government's 'No Deal Brexit' Stockpiling

on Friday, 12 October 2018.

The UK Government has continued to up its preparations for a "no deal Brexit". Part of that has involved a request to the UK's pharma manufacturers to stockpile an extra six weeks' worth of stock to avoid shortages.

That is easier said than done. With manufacturing processes already working hard, it is questionable whether this can physically happen. 

But there is also a financial issue for the small and medium sized companies in particular. EMIG (Ethical Medicines Industry Group, of which VWV is a member) has written to the Health Secretary to ask for financial support in meeting the Government's requested stockpiling target. Based on EMIG's latest Brexit Barometer Survey of its members, the trade body said that more than a third of its members were unsure whether they could build up extra supply and over half felt they would struggle to meet the cost. EMIG's members supply half of the NHS’s branded medicines.

Leslie Galloway, the Chair of EMIG, said: "Without this [financial] support we believe that some companies will not be able to fulfil the government’s request, which could jeopardise the future security of medicines supply."

Comment

EMIG members are under unprecedented financial pressure. The cost of stockpiling is just the latest hammer blow. Others include pricing clawbacks of more than 20% in the industry's PPRS pricing scheme from 2021, and a change in NICE's proposed scheme for reviewing medicines whereby costs of review in excess of £250,000 may still end up with a "no" result for medicines judged to be cost-effective.

The UK's pharma sector is one of the jewels in UK manufacturing's Crown, and it needs to be supported, particularly in a post-Brexit world. Hopefully, the industry's pleas for help with support for its Brexit planning will be well received by the Government.


If you have any thoughts or questions around the issues affecting the pharma supply chain in light of Brexit and the costs and ability to prepare, please contact Paul Gershlick in our Pharmaceuticals and Life Sciences team on 01923 919 320.