Recently, a subtle trend is being detected in the drug return business promoted by the Korean Pharmaceutical Association. The will of the pharmacists’ association is that it will enter the pharmacy’s computer system in December and proceed with the business from January next year, but the distribution industry is concerned that there is a high possibility of taking a big loss from part of the subject. and return method.
Here, even some sections of the pharmacists’ society are raising doubts. The Korean Pharmaceutical Association said they are in constant discussion, but there are counter-arguments that they are leaving the responsibility to the local pharmaceutical association because ‘the situation is different’.
According to the recent stories of pharmaceutical and drug industry officials, the Korean Pharmaceutical Association began computer input on December 19, 2022 last October, and noise is heard from some parts of the distribution industry and pharmaceutical companies related to the return business.
The Korean Pharmaceutical Association announced that it would hold a return business for unused stock medicines from November. At that time, before the project, it was emphasized that around 190 pharmaceutical companies had sent official documents related to the return business since July, and that 125 pharmaceutical companies had sent a return cooperation confirmation letter.
Therefore, after identifying idle stock medicines in member pharmacies in November, data input and meetings were held with unknown pharmaceutical companies in December, the plan was to collect the stock medicines through distributors from January 2023 and complete the settlement by April raised He also said that he would collect all the data in May next year and make statistical data.
It was early December when disagreements began to emerge about this plan. The Korean Pharmaceutical Association announced that it would actively cooperate with the Korea Pharmaceutical Distributors Association at a meeting on November 30 to promote the successful return of unused stock medicines.
At this time, according to the content of the press release from the Pharmaceutical Society, the Pharmaceutical Society explained to the Pharmaceutical Distribution Society the general guidelines for the return business, such as the return business promotion schedule and the return process, and stop taking prescription drugs regardless of the expiration date Ask for a refund and settlement.
In addition, by introducing the return support system operated by the pharmaceutical association, the pharmaceutical association explained that the two organizations have agreed to respond to pharmaceutical companies that do not fulfill their promises after presenting a letter of confirmation of cooperation with pharmaceutical companies that do not cooperate with forms. .
However, the majority of the pharmaceutical industry explained that the views of both sides differed significantly in terms of the content of the meeting itself. Rumors followed that the pharmaceutical association was not listening to the distribution industry’s story on some issues, including earnings from non-cooperative pharmaceutical companies.
Nevertheless, the Korean Pharmaceutical Association confirmed the request of the Korean Pharmaceutical Association through a meeting of pharmacy heads across the country, etc., and informed them of the procedure as entering the system.
In addition to the general return period or input method in the document, the target items are set as ‘all items except narcotic and psychotropic drugs regardless of expiry date’, as well as pharmaceutical companies and products that able to print and collect labels, whether they are normal or not, local pharmaceutical and distribution companies It was because of the content that could be changed depending on the consultation situation with the society.
In addition to being able to unilaterally write all the items of almost every pharmaceutical company, except for about 100 places that were the subject of discussion by the pharmaceutical society, the settlement is said to be different, and there is content that puts pressure on distributors to take part.
It is known that the distribution industry will help the business but maintain a principled position.
Although it is a matter that requires cooperation, if a company that has not consulted the pharmaceutical society is asked to do so, there is a possibility that the return settlement will not proceed properly, and the pharmaceutical company that adjust the settlement ratio in negotiations with the pharmaceutical company and the distributor has no choice but to have a stronger opinion.
Above all, the number of items is so large that each company uses too much manpower and time to arrange the items one by one, so that pharmaceutical companies must be held responsible if items not agreed upon are not delivered. return, and that copyrights some products are changed. In case of reason, it is also noted that it is difficult to determine who is the subject of the return.
An official in the distribution industry said, “If you look at co-promotion products, how can you check if there are items that were contracted 5 years ago and sold separately from 2 years ago? It’s good if there are even boxes or medicine boxes How can I check the items taken out of ATC Would you do it There is no settlement text, no time period, and no way to identify it.
An official from another distribution company also said, “Some (distribution) companies or some pharmacies ask, ‘Isn’t it good to get rid of stock?’, but it is not a matter that can be said so easily.” It appears that items can be returned, but there are many items that cannot be returned, and there is a possibility that the items that can be returned will be significantly reduced compared to the input of the pharmacy system. distribution also spend unnecessary time and money for good reasons. “
In addition, a unified ‘helpline’ and ‘guide’ in the settlement process is needed to reduce the burden caused by items not sold by the company and not on record, but such measures are lacking increases the burden on the This is what they are worried about.
In the pharmaceutical and distribution industries, even if the actual return is made here, it is expected that it will take quite some time until the actual settlement process.
A pharmaceutical company official admitted, “If you look at the details of the business, in fact, they are talking as if they can proceed with compensation for returns after the first quarter, but there are very few cases that are not easy inside to the company.” As this is the quarter in which the industry starts the most businesses, it means that it is difficult to allocate financial resources to compensate even if profits are made quickly.
Another person in the distribution industry said, “In my experience, there are many cases where (pharmaceutical companies) do not receive returns even if they ask for returns in the first quarter.” Even if the settlement is achieved, there is a high probability that we will explain that (settlement) is only possible after the first half of the year.”
An official from the distribution industry said, “In terms of earnings, the distribution industry has no choice but to watch the situation.” “There are not many people inside the company who know this very well. It is also because of that,” he said.
“There is no guide on what to do here, and there is no helpline for product distribution by company,” he said. the desired amount (settlement) after completing the return input.”
The absence of guidelines, etc., is already a point where some sections of the pharmacy community are raising issues with the return business. Pharmacist Crisis Emergency Action (CEO Oh In-seok, Pharmacist Action) pointed out that the Korean Pharmaceutical Association’s return business is actually nothing more than a match.
The Pharmacist Action highlighted complaints due to faults in the system, answers that did not emerge clearly even to queries relating to collection, and the order of entry, collection and settlement which caused this process was not clear
The Pharmacist Action side pointed out, “It is common to hear that the pharmacists’ association runs a business which is not systematically prepared, and which does not produce much better results compared to regular returns, when taking advantage of distribution and pharmaceutical companies.”
Meanwhile, the Korean Pharmaceutical Association said in relation to pharmaceutical companies that did not cooperate with returns, “We will continue to hold meetings with the companies, and we will cooperate as much as possible by revealing the list to understand,” it said.
It is explained that data can be collected through the amount of returns and used as basic data for negotiations with uncooperative pharmaceutical companies.
Regarding the point of confusion in local pharmacies, the pharmacists’ association said, “Settlement after return is supposed to follow the guidelines of the pharmaceutical company, and the return method of the responding pharmaceutical company will be decided differently by region. The situation is different for each. region.”
As for whether there should be a countermeasure that suits the regional environment or not, he added, “We discussed it at the head of the local pharmaceutical association’s meeting just before. We asked for a plan for each region.”
However, the distribution industry casts doubt on the pharmaceutical society’s view. Ultimately, it seems that we need to pay attention to the direction of this project as it is pointed out that it is no different to earnings and settlements, which local pharmacists’ associations have to draw up, rather than national gains at the pharmacy level.
