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The United States has one of the highest healthcare costs in the world. While exploring the various reasons behind this unusual rise in the cost of healthcare, experts have come up with few reasons that could be responsible.

The NHS is on track to miss out on savings of over a billion pounds as patents for a new lineup of 85 biologics are set to expire within the next five years, the British Generic Manufacturers Association has revealed in its new study. The government's Voluntary Scheme for Branded Medicines Pricing and Access is expected to lead to a cost of more than £1 billion for the NHS in the coming years. The BGMA research found that more than 85 biological medicines will experience loss of exclusivity during the upcoming VPAS Scheme period from 2024 to 2028. "This includes blockbuster products like the cancer medicine Keytruda and wet macular product Eylea, which together generate approximately $25 billion in global sales," BGMA said. "The molecules coming off-patent also cover other disease areas including oncology, diabetes, arthritis, and asthma." While biological medicines dominate the medicines budget, constituting the largest cost and cost growth sectors, NHS England aims to expedite biosimilar availability, yielding substantial savings and expanding patient access to vital treatments. Yet, the report found that "this is jeopardised by the influence of the VPAS Scheme".

The National Pharmacy Association (NPA) has welcomed the Chancellor's commitment to increase the NHS budget, hoping that 'community pharmacies benefit from this investment'. The association is urging the government to address years of underfunding so that community pharmacies can avoid staff lay-offs to cover the increasing costs of the national living wage. The government's uplift of the National Living Wage was confirmed in its latest budget announcement to tackle the cost of living crisis. The NHS budget will also be increased in each of the next two years by £3.3bn. A recent NPA commissioned report by Professor David Taylor from University College London predicted that wage inflation and other cost pressures could combine with funding cuts to lead to cut-backs and pharmacy closures.

HayMax, maker of the famous organic drug-free allergen barrier balm has been awarded the 'British Made Award' for Best British Allergy Product 2022. The award celebrates businesses that work tirelessly to make their region one of the most diverse and dynamic the UK has to offer. HayMax MD and creator Max Wiseberg comments: "This award means a great deal to us. We've always been proud that our products have been manufactured in the UK. We are passionate about reducing the cost to the environment so being British-made means we keep the miles down and reduce our carbon footprint." HayMax balms are manufactured in the UK. It buys local to reduce the cost to the environment, even if it means it costs a bit more. HayMax's current pots are now made in the UK, which has been great for reducing their carbon footprint. Its tins come from London. The new pots can be recycled and re-used. The brand has now switched to using sugar cane to make its pots and has also reduced the amount of material used in the pots by just over 54%. And they have switched from the plastic labels to paper labels.

Glenmark, a multinational pharmaceutical company, has partnered with AI data-driven supply chain management platform 7bridges. Initially focusing on their European business, where they have operations in 15 markets, the supply chain and logistics function is a big focus area for this cost reduction. The partnership with 7bridges will allow Glenmark to baseline their supply chain data giving them visibility of data, cost and service performance across their network of logistics service providers. This exercise will identify areas where invoices from their logistics service providers are being incorrectly or overcharged. With automatic dispute raising, savings will be quickly achieved. The platform will then enable Glenmark to benchmark their data, so they can compare the performance and cost of their LSPs to the wider industry. With Glenmark's global vision to emerge as a leading integrated research-based global pharmaceutical company, this investment in their supply chain will be integral to achieving this. The next step in the partnership will be to run simulations to optimise road freight services and 3PL operations, with the aim to then roll out globally.

The National Pharmacy Association (NPA) has commissioned Professor David Taylor of University College London to investigate the implications of all-time high inflation rates on community pharmacies in the UK. Professor Taylor's will assess rates of inflation affecting community pharmacy across the UK, using public data sources whilst examining inflated costs in the context of the current five year contractual framework in England (2019-2024). He would review the EY (Ernst & Young) report into pharmacy funding, to identify whether current inflationary pressures could change any of the findings and consider the policy implications and impacts of inflationary pressures, including pharmacy's ability to prepare for a more clinically focused future and maintain current core services. NPA chief executive Mark Lyonette said: "Inflationary pressures are eating into the limited funds provided by the NHS for pharmacy services. We believe the real level of inflation for pharmacy businesses could be higher than the CPI inflation rate, which itself is at a 40 year high. Staff and locum costs in the sector as well as medicines costs have risen dramatically.

The National Pharmacy Association (NPA) has warned of multi-million financial hit for community pharmacies, while the Pharmaceutical Services Negotiating Committee (PSNC) has renewed its calls for urgent financial support amid a looming energy bill crisis. NPA board member, Olivier Picard, this week shared a screenshot of his estimated electricity bill on WhatsApp groups. Upon expiration of his current arrangements, in October, his electricity bill could rise from its current £1,821 for one pharmacy to an estimated £6,914 - a near fourfold increase. Piccard said: "This is an eye-watering rise in costs for my own pharmacies and adds to the intense financial pressure we're already under. My standing charges will multiply by 10 and the overall cost to each pharmacy amounts to about £5,000." His comments come just ahead of an NPA-commissioned report into pharmacy inflation which will provide an analysis of inflationary costs pressing on the community pharmacy sector, from utilities and workforce to medicines purchasing.

Pharma giant, Pfizer has announced plans to cut 500 jobs at its Sandwich site in Kent, England as part of its ongoing $3.5 billion cost-cutting drive. The company is also planning to shut its Pharmaceutical Sciences Small Molecule (PSSM) capabilities at the site, a spokesperson of the company told FiercePharma. However, the Sandwich site will remain open and other functions will continue with "a different size," the spokesperson added. Currently, around 940 people are employed at the site, which is the location where Pfizer scientists first discovered Viagra. "We are proud of our heritage of breakthrough science in the UK and we will retain a scientific presence in the U.K. including at our Discovery Park location in Sandwich," Pfizer's spokesperson confirmed in an email to FiercePharma.

The General Pharmaceutical Council (GPhC) has decided to increase the renewal fees of pharmacists, pharmacy technicians, and pharmacy premises by 7.5% from April 2024. The pharmacy technician's renewal fee will see an increase by £9 from £121 to £130, pharmacists fees from £257 to £276, and pharmacy premises from £365 to £392. The following decision came even despite the renewal fees being frozen for individual registrants since 2019 and for pharmacy premises since 2021. This move was facilitated through cost savings measures like using financial reserves and downsizing to a smaller office. However, the council confirmed that the fee hike is due to higher rates of inflation, increase in utility bills and supplier costs. Duncan Rudkin, Chief Executive and Registrar of the GPhC, said: "We know that these are challenging times and that this increase will come as unwelcome news to those we regulate. But to be effective in our role of protecting the public we need to make sure the fees we charge cover the cost of regulation going forward."

More than a third of pharmacists who participated in a survey said they have seen an increase in patients declining prescriptions due to the cost in the last 12 months. The survey was jointly conducted by the Pharmacists' Defence Association (PDA) and the Royal Pharmaceutical Society (RPS), extending their support for the Prescription Charges Coalition (PCC). Responding to the survey, 90 per cent of pharmacists admitted seeing cases where patients decline all the medicines on a prescription due to cost. Nearly all respondents said they have seen cases where patients declined some of their prescribed medicines and more than a quarter of them have experienced such situation often. They have warned of the impact of prescription charges as patients are denying vital medicines, including those for blood pressure and mental health, inhalers, antibiotics, pain relief, and statins, which can have potential consequences for the individual's health.

Poverty not only takes a significant toll on people's health but also leads to additional costs for the National Health Service (NHS). Rise in deep poverty, cost-of-living crisis, and high pressure on NHS services have worsened the situation, according to a study published by The King's Fund this week. The report underscored that poverty and deprivation contribute to a greater prevalence of diseases, difficulties in accessing health care, late or delayed treatment, and worse health outcomes. These challenges could be seen across various NHS services, spanning from emergency care to dental services Additionally, it revealed that 30 per cent of people living in the most deprived areas have turned to 999, 111, A&E or a walk-in centre because they could not access a GP appointment. In 2016, the Joseph Rowntree Foundation (JRF) estimated the cost of poverty on health care at £29 billion (£34 billion in current prices). As the proportion of people living in deep poverty has risen, the situation has worsened. In 2021/22, six million people were living in very deep poverty, up from 4.5 million two decades ago. Currently, more than one in five people in the UK are estimated to be living in poverty, the report noted. Deprivation is linked to a range of diet-related health problems, including cardiovascular disease and diabetes, as well as mental illness. According to the report, the depression rate is two times higher among people living in the most deprived areas, compared to the least deprived areas.

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The Department of Health and Social Care (DHSC) has announced 30 pence increase in prescription charges from £9.35 to £9.65 for each medicine or appliance dispensed. Board Chair for England at RPS, Thorrun Govind commented: "This is a kick in the teeth for people in England who are already struggling with rising bills and food prices. "Patients groups have warned that people are not collecting prescription medicines due to cost and pharmacists are seeing this worrying trend first-hand. "A Government impact assessment noted the risk of adverse effects of people not taking their medicines, resulting in future health problems for the individual, potential hospital admissions, and a subsequent cost to the NHS. "This decision seems to prioritise revenue generation over ill-health prevention and undermines the principle of an NHS free at the point of use.

In the next 10 years, the incidence of first-time stroke cases in the UK is projected to increase by 60 per cent, costing the government £75bn in healthcare and lost productivity, a charity has suggested. A new manifesto published by the Stroke Association has urged the next UK government to make stroke "the priority", stressing that the next decade is crucial for stroke prevention, treatment and recovery. Currently, stroke is the UK's fourth biggest killer and a leading cause of disability. On a daily basis, 281 individuals experience a stroke. Next year, the cost of stroke in the UK will be £43 billion. The charity predicted that by 2035, there will be 151,000 hospital admissions due to stroke every year, averaging 414 admissions per day, with 42,000 people estimated to die every year. In 2035, the UK is projected to have 2.1 million stroke survivors, imposing a financial burden of £75 billion on the public purse, nearly half the current NHS budget.

In a decisive move highlighting the financial strain faced by community pharmacies, the National Pharmacy Association (NPA) submitted a £108 million invoice to the Department of Health and Social Care (DHSC) today (16 May). According to the NPA, this substantial sum represents the amount that pharmacies in England personally covered for the dispensing of NHS medicines last month, as a result of inadequate funding. "The £108m figure is an average monthly figure based on the loss to pharmacy incomes over the past decade," it said. The association believes that mass closures can be prevented only when the government stops expecting pharmacies to subsidise the cost of delivering NHS care. NPA chief executive Paul Rees, said: "The soaring costs of dispensing medicine coupled with declining real terms funding has led to community pharmacies in England having to subsidise the dispensing of drugs to the tune of £108m a month.

Trust leaders involved in the New Hospital Programme (NHP) have warned that further delays in the government scheme will lead to more patient harm, disappointment among staff, and higher costs for taxpayers. According to NHS Providers, delays in the government scheme that promised 40 new hospitals in England by 2030 are draining millions of pounds from scarce NHS funds every month. Some trusts are compelled to spend over £1 million a month from their under-pressure budgets due to spiraling cost pressures, on-hold building projects, and the bill for having to patch up deteriorating sites. While there has been some progress over the past year, trust leaders remain apprehensive that "uncertainty over funding and shifting timetables risks putting their promised buildings further out of reach."

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