Cost of recalls fall hard on chemists

The production line at the Novo Nordisk factory. Photo / Paul Estcourt.

Chemists are again crying foul over yet another drug recall that they say they are bearing the cost of, instead of the drug companies.

There have been seven consumer-level drug recalls this year, an unusually high number. In the latest, Danish drug maker Novo Nordisk has recalled a 2800-strong batch of diabetes medicine after some of the powder injection's glass vials were cracked or broken during manufacturing.

The Pharmacy Guild is campaigning this year for its members to be reimbursed their costs in dealing with drug recalls.

Chief executive Annabel Young said guild pharmacists should keep a record of their time and costs in doing the recall, and are advised that they should send a bill to Novo Nordisk for the recall service provided at the company's request.

Denise Wood, the chief executive of Medicines New Zealand, formerly the Researched Medicines Industry Association, said the prescription charge paid to the chemist should normally cover all the activities carried out on behalf of the Ministry of Health.

Drug companies were expected to compensate over stock, but there were no guidelines around consumer-level recalls and drug companies did not have a direct contractual relationship with the pharmacists, she said.

The Ministry of Health is leading a review of the recall procedure, including looking at who bears the costs.

The ministry and the bodies involved will meet next month to start talking about the issue of compensation, Mrs Wood said.

"It's a very grey area, and it's one where we are looking to get clarity on before the end of the year so that we can sort it out for the future.

"I suspect the best route is for the pharmacists to go back and renegotiate their contract with the Ministry of Health and then Pharmac, through their contractual relationships with the drug companies, can effect a fee for when there is a recall."

Mrs Wood accepted there was extra work for pharmacists in recalls.

"We are not saying we don't think they should get something, but I think it's a matter of policy and it's something the Ministry of Health should sort out."

She said drug companies would abide by the decision of the agencies group, which is being led by the Ministry of Health's chief advisor of public health, Ashley Bloomfield.

Dr Bloomfield was not available for comment.

Meanwhile, the guild, through its president Ian Johnson, the owner of Johnson's Pharmacy in Otara, is taking GlaxoSmithKline (GSK) to court in a civil case over his costs of about $400 incurred in the recall of the drug Marevan in January.

Mr Johnson said the court case was going through a "tortuously long process".

GSK New Zealand general manager Geoff McDonald said earlier this year that the company had not ruled out compensation, and the guild's decision to take legal action was an "overly assertive" step.

- NZPA