MALAYSIAN COMMUNITY PHARMACISTS’ PERCEPTIONS OF THE IMPACT OF PHARMACEUTICAL PRICE COMPETITION

Abstract

Background: This survey aims to evaluate the perceptions of price competition among community pharmacists. Methods: An online survey was conducted on community pharmacists throughout Malaysia. A list of potential respondents was extracted from the Ministry of Health Website and an invitation was sent. Incomplete forms or repeat submissions were rejected. The demographic characteristics and perception of price competition, the impact of price competition on business, the contributory factors, and possible solutions from community pharmacists were collected and analysed. Descriptive statistics were used to summarise the demographic data and responses. Statistical analysis was used to compare differences in the scores between two independent groups. A p-value <0.05 was considered statistically significant. Results: Responses from 345 community pharmacists were available for analysis. Among them, 71% are of Chinese descent. About 50% of them aged between 21 to 30 years, and 40% with up to 3 years of experience. Most respondents perceived nearby pharmacies being the most important competitor type. Price competition impacts mostly on the overall total profit margin of their business, followed by profits from Group B medicines. Fifty-six percent of the respondents concurred that compromising professional and ethical pharmacy practice is the prime consequence of price competition. The threat of the survival of community pharmacies, a lack of pharmaceutical price control and regulation, as well as volume discounts and bonus schemes are the three main contributory factors of price competition. Pharmaceutical price control or regulation is perceived as the most effective solution to curb price competition Conclusions: The findings of this study highlight that price competition among community pharmacies is intense and affects adversely the profit margins of their business. The respondents also perceived that governmental intervention in price control of pharmaceuticals is important to create a healthier environment for community pharmacists in the country. Keywords: community pharmacy, price competition, price war, price control, price regulation, business competition